Prefabricated metal buildings are great for several reasons. They are easy to construct, cost-efficient, and resistant to environmental damage. Apart from these, steel structures cost less to insure than traditional buildings. That’s because wood and concrete buildings are more likely to take damage during an earthquake, hurricane, or flood.
Compared to common construction materials, a steel structure doesn’t need structural repair after a natural disaster hits. So, most insurance companies offer a discount on insurance premiums for metal structures.
As materials and labor costs continue to rise, getting lower insurance premiums is important. Consider metal buildings if you want discounts and cheaper insurance costs. Continue reading to learn more:
How Is Property Insurance Calculated?
Insurance companies typically base premiums on a perceived level of risk. The lower the risk of property damage, the lower rates you will pay. In calculating the premium rates, the insurance company will evaluate details about the building such as the structural type and materials used.
You have a clear advantage when you have a prefab steel building. It’s no secret that metal buildings are incredibly strong and damage resistant. A lot of insurance companies acknowledge its durability and low maintenance characteristics. In fact, steel building insurance rates are discounted by up to 30%. This means you can reap huge savings in the long run.
Factors that Determine Insurance Premiums
Area Where You Live
The location of your metal building may influence the amount you pay on premiums. Property or building insurance varies from one area or state to another. If the state where you live has higher requirements for minimum coverage, this means you’ll pay higher premiums. For example, Texas homeowners need to pay higher premiums since the state is prone to tornadoes and hurricanes.
Fortunately, you can get lower premiums when you choose a hurricane-resistant metal building. The biggest benefit of a steel structure is that it can effectively stand up to natural disasters.
Building Age and Condition
Older homes are more susceptible to foundation problems, roofing issues, and earthquake damage. This means older buildings cost more to insure. When a building has outdated plumbing or electrical systems, insurance companies view this as a high-risk factor. In order to qualify for an insurance policy, older homes may need to be retrofitted to meet present-day codes.
On the other hand, steel buildings can outlive traditional structures. When it’s properly built and maintained, it can last anywhere from 50 to 100 years with less corrosion and structural damage.
We all know that the bigger the structure is, the more it’s going to cost to insure. If you own a steel warehouse, expect that the insurance premiums will be higher than a small metal barn.
Safety and Security Features
Is your location theft-prone? Did you install alarm systems and other security features in your home or business? The answers to these questions can influence your insurance premium. Your building’s susceptibility to theft and break-ins is assessed by the insurance company. The higher the risk, the more premium you pay.
To earn discounts on premiums, you need to install safety features that can deter or mitigate risk. Due to their versatility, you can add security measures to your steel building. Strong lock systems, security cameras, and motion detectors are some options that you have. These security devices can help secure your building and reduce crime risks.
There are six building construction categories established to define their characteristics and susceptibility to fire damage. Insurance companies use these classifications to determine insurance rates and associated costs. To lower your property insurance premiums, choose a building with more fire-resistant materials. Here are the six building classes for commercial structures:
- Joisted Masonry
- Masonry Non-combustible
- Modified Fire-resistive
What Makes Metal Building Insurance Lower?
Most pre-engineered steel buildings fall under the classification of “Non-combustible.” This means that the building materials do not burn or ignite when exposed to fire or heat. With prefab steel structures, fire safety issues won’t be a concern. As a result, your metal building can save you money on insurance costs. The more fire-resistant your structure is, the better.
For more information on metal buildings, let Texas Custom Metal Buildings of Midland assist you! We specialize in barndominiums, metal carports, and more. Call us to get started on your metal building project!