The Circular Economy – Squaring The Circle in Property Repairs

This piece is by Nick Turner, Head of Surveying, Woodgate & Clark;

In his final article on the circular economy in property repairs, Nick Turner, Head of Surveying at Woodgate & Clark looks at the benefits of embracing this approach and next steps to consider. Check out the full report at the Woodgate & Clark website here.

Insurance building claims and repairs

Building repair costs as a whole have increased dramatically since 2020 due to a number of different factors. That trend is predicted to continue, largely due our changing climate. In this context, it is understandable insurers may not want to pay more for sustainable materials if there is a more costeffective, well-established option. Yet there is an argument that a longer-term view is necessary in to help halt or even reverse the trend.

As part of their sustainability objectives, insurers could therefore consider encouraging recycling of new waste and materials removed for repair as well as the use of more recycled materials. This might be more labour intensive and may incur some additional cost but could be a positive step in removing carbon emissions.

Embracing the circular economy in building repairs insurers could benefit in:

Resource Efficiency: By adopting methods such as refurbishment, reuse, and recycling in building repairs, insurers can reduce the need for new materials, thus cutting costs and minimising environmental impact.

Long-term Cost Reduction: While initial investments in circular economy practices may be higher, they can lead to significant cost savings over the long term. Repairing and refurbishing damaged buildings instead of replacing them entirely can be more cost-effective, especially when considering the rising costs of raw materials and construction.

Risk Mitigation: In some instances, using recycled or reclaimed materials may offer more resilience against future damage, reducing the likelihood and severity of future claims.

Enhanced Sustainability: By promoting the reuse and recycling of materials, insurers can contribute to broader sustainability goals, such as reducing carbon emissions, conserving natural resources, and minimising landfill waste. This aligns with the growing societal and regulatory emphasis on sustainability.

Market Differentiation: Insurers that proactively adopt circular economy practices in building repairs can differentiate themselves in the market by demonstrating their commitment to sustainability. This could attract environmentally conscious customers and stakeholders, enhancing brand reputation and competitiveness.

However, it’s important to acknowledge potential challenges and barriers, such as initial investment costs, regulatory hurdles, and the need for collaboration across various stakeholders in the building repair ecosystem. Nonetheless, by strategically integrating circular economy principles into their operations, insurers can navigate these challenges and unlock both financial and environmental benefits.