Compared to traditional lumber-based construction, commercial and industrial steel building insurance rates can often be up to 30% lower. That’s a huge savings, especially when you consider that commercial insurance rates generally increase by about 5% annually.
There’s another reason why you might be more inclined to think about the operational costs of a building—which would include insurance. A series of disastrous weather events can cause those insurance rate increases to go up much faster. It’s estimated that rates will increase from 10% to 20% along coastlines.
How Insurance is Calculated
Insurance companies base their rates on risk factors. The lower the risk of damage to your structure, the lower your insurance rates will be. The top determining factor is usually the structural type. Insurance companies base your premium rates based on how strong and damage-resistant the materials are.
There are other factors, such as size, age, location, and safety additions—but the base calculation is going to be your building’s structural type.
Classifications
Most insurance is provided based on six major building classifications.
- Frame: This includes buildings constructed with combustible wood, or slower burning composite materials that are used for exterior roofs, floors, and walls.
- Jointed Masonry: The structural support rests on concrete blocks, pre-cast concrete walls, or bricks. Floor joists are wood or steel.
- Noncombustible: Outer walls are a noncombustible material. Slow-burning or noncombustible materials are used for the floors and roof.
- Masonry Noncombustible: This type of structure is made of cinder blocks or poured concrete with steel.
- Modified Fire-Resistive: These are usually high-rises or shopping malls. The construction includes extra fireproofing materials.
- Fire-Resistive: This classification is a further improvement of the one above.
Rates
Your building insurance rate is based on one of these classifications. Generally, because wood or composite structures burn or collapse more easily, you’ll pay higher insurance rates. The more you improve the fire-resistance, the more of a decrease you should see in your rates.
Generally speaking, most low-rise pre-engineered steel buildings fall under the classification of “Noncombustible.” Yes, Miracle Truss® uses wood for secondary framing, but steel legs and steel roof trusses can make the difference. As a result, these types of buildings can earn insurance discounts of up to 30%. Keep in mind that fire is a primary concern, so adding features like sprinkler systems and smoke alarms may reduce your premiums even more.
Resistance to fire is only one of the reasons why Miracle Truss® buildings can save you money on insurance premium costs. Learn more about the Miracle Truss® advantage here.
