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How Metal Buildings Can Cut Insurance Costs
Sep 2022

How Metal Buildings Can Cut Insurance Costs

Stephan Michaels
Metal Buildings, Metal Garage

Let’s face it. Property insurance is expensive! And no matter how you cut it, that fact will probably only get worse. In the wake of recent events, climate change, and natural disasters, property insurance is expected to increase by 12%-30% in 2022 alone!And though there’s not much one can do to avoid increased insurance premiums, choosing the right construction options can help ease the blow.
If you’re planning to build a garage, barn, or home, choosing a steel building over traditional options can save you tons in insurance costs. Sometimes even up to 40%! But why is this? What makes the premiums on metal structures cheaper than wood?
Below, we’ll dive into this topic and show you how you can minimize your insurance costs by choosing a steel building for your next construction project.

The Factors That Affect Insurance Premiums

In most cases, insurance companies determine their rates based on several criteria. These categories allow the company to determine the relative risk of a particular structure type. These factors include:

1. Building Age

How old is your building? Is it newly constructed, or has it been used for a while? Older structures may have foundation issues, decay, and ordinary wear and tear, which can increase a structure’s danger risk.

2. Lot Size and Quality

This category measures the size of your property, its land quality, and the surrounding real estate market.

3. Damage Potential

The damage potential is the likelihood of natural conditions and weather patterns damaging your property.

4. Occupancy

This category covers the number of individuals that live or work in the building.

5. Safety Precautions

This category measures how many safety measures your building contains, including sprinklers and smoke alarms.

6. Business Use

If your building is zoned for commercial enterprises, it may be at a higher risk of coming into contact with hazardous chemicals or materials.

7. Building Size

Another category measures how large your building is. Larger buildings will contain more components, carry more weight, and potentially carry more safety issues than smaller buildings.

8. Material Type

One of the most important categories, the material your building is constructed from, will say a lot about its strength, integrity, and longevity.

Building Classifications and How Insurance Rates Are Calculated

In most modern construction, structures will fall into one of six categories. These will also play a pivotal role in how insurance premiums are determined. Let’s look a little closer at these classifications:

Classification 1: Frame

The frame classification typically consists of wooden or composite buildings, which are more prone to collapse and fire than other building types. As such, the insurance premiums on these buildings are more expensive.

Classification 2: Jointed Masonry

Buildings that fall under this category are usually constructed using concrete and wooden components. Since they’re relatively stronger than frame-built buildings, their premiums tend to be roughly 5% cheaper.

Classification 3: Noncombustible

Noncombustible structures are buildings with outer walls of noncombustible materials. Most prefabricated metal buildings will fall into this category. Their inherent fire resistance and added safety measures can make premiums up to 30% cheaper!

Classification 4: Masonry Noncombustible

This classification covers larger multi-level commercial structures that are built using concrete or brick with noncombustible materials like concrete or brick. Though these structure types usually carry a higher initial construction cost than others, insurance premiums are less expensive.

Classification 5: Modified Fire-Resistive

These buildings are multi-story structures that are utilized by many individuals, such as high rises and office buildings. During the assembly process, additional fire-resistance measures are added, making them more affordable than other construction types.

Classification 6: Fire-Resistive

These buildings are much like those in classification 5, but with even more fire-prevention components and safety measures. These structures cost more to build and have insurance rates that are slightly more expensive than classification five buildings.

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Why Metal Building Insurance Is Lower

As we’ve mentioned, insurance premiums are usually based on categories that determine a structure’s capability to resist structural damage from fire and environmental hazards. Therefore, the stronger and more resistant to these concerns a building is, the lower the premium.

And that’s precisely why custom metal buildings have become one of the most popular construction methods on the market for residential and commercial construction. These structures are incredibly strong, resistant to rust, mold, decay, pests, and even fires up to 1,200 degrees Fahrenheit. Following up those capabilities, steel buildings are also easier to repair and replace than wood or masonry construction. As such, not only does a metal building cost less than the competition, but the insurance rates on them are also far cheaper.

Get Your Metal Building from Garage BuildingsToday!

Garage Buildings is your trusted metal building provider, whether you’re building a small equipment shed or a larger commercial structure. We have a proven track record of delivering premium metal buildings and exemplary customer service.

We’re proud to offer low metal building prices and flexible financing packages that make owning a steel structure on a budget easy! And if you’re looking for alternative options, we have a great rent-to-own program that puts you in the driver’s seat of your structure with no hard credit checks and same-day approval!

So, if you’re ready to break ground on your new prefab metal building, give Garage Buildings a call at +1 (866) 355-4442. We’ll be happy to help you design and customize a structure to meet your specific needs!

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