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How Metal Buildings Save Money on Insurance Premiums
Jun 2020

How Metal Buildings Save Money on Insurance Premiums

Stephan Michaels
Metal Buildings, Steel

Protecting your investments, especially those as substantial as buildings, is important. Unfortunately, it is also expensive. In fact, the cost of property insurance is on the rise, making protecting your building investments more expensive than ever.

As these costs continue to rise, finding ways to protect your assets at a lower price point is vital. One such manner of lowering the cost of your property insurance is to reconsider the buildings themselves. Metal buildings cost less to insure than other structures, including those constructed of common materials such as wood or brick.

For more on how metal buildings can save you money on insurance premiums, read on!

What are the Factors that Determine Insurances Premiums?

When determining the potential cost of your insurance, an insurer will examine several key factors. Steel buildings excel in several of these areas, leading to lower premiums. We have listed a few of the determining factors below.

  • Area – The location of your building factors into insurance costs. This includes details such as the size of the property, state of the local real estate market, and more.
  • Building Age – The age of your building will affect your insurance premium as it often correlates with safety and so on.
  • Business Use – The type of business conducted within your building plays a role in the cost of insuring it.
  • Design and Materials – The structural design of your building and the materials used in construction will affect your insurance premiums.
  • Occupancy – The number of people living or working in the building are associated with risk and can sway the price of insurance.
  • Potential Damage – The climate in which you live correlates with potential damage to your building which, in turn, influences premiums.
  • Safety Features – The more modern and safer a building is, the lower the insurance premium is likely to be!
  • Size – The correlation between the size of the building and the cost of insurance is a pretty straightforward relationship.

Building Classifications and Their Impact

Buildings are sorted into various classifications that help define their construction and characteristics. Insurance companies use these classifications to help determine the necessary coverage and associated costs.

  • Frame – Insurance premiums for this classification of building tend to be the highest. The category includes composite and wood buildings.
  • Jointed Masonry – Slightly lower premiums than Frame classified buildings are a result of concrete being used in conjunction with wood in the category.
  • Non-Combustible – As the name implies, buildings in this category feature non-combustible outer walls. This substantial safety upgrade means insurance rates are often up to 30% lower than those of Jointed Masonry buildings.
  • Masonry Non-Combustible – Buildings in this category typically have lower insurance costs than those in the Non-Combustible classification, but initial construction costs are substantially higher.
  • Modified Fire-Resistive – Extra fireproofing makes insurance rates for buildings in this classification lower than those in the previous four categories.
  • Fire-Resistive – Additional fireproofing separate this classification from Modified Fire-Resistive. However, buildings in the category tend to cost more to build than any other classification.

What Makes Metal Building Insurance Lower?

The strength and durability of metal buildings contribute to significant savings when it comes to property insurance. This resistance to damage includes that inflicted by weather, pests, accidents such as fires, and so on.

The financial savings associated with steel structures also reduces average insurance premiums. Because prefab metal buildings are affordable to build and replace should damage occur, insurance companies perceive less risk.

These and other such benefits inherent to steel buildings make insurance costs less than what they would be for a more traditional building. For more on what differentiates metal buildings from other options on the market and how they can save you money on property insurance, call Garage Buildings on +1 (888) 234-0475.

Save Money with Garage Buildings

When investing in a building, you want to ensure you’re receiving the best quality and customer experience possible. Garage Buildings’ excels in both of these categories, which is why it is considered the go-to dealer of metal buildings in the United States.

For more information on metal buildings, insurance savings, and other related topics, call Garage Buildings today on +1 (888) 234-0475. An experienced team of knowledgeable professionals is standing by to answer your questions, guide you through the customization process, and otherwise aid you in any way possible!

Garage Buildings