Why Steel Framing Can Lower Your Insurance Premiums
When you select cold-formed steel as your main material for framing, you can drastically speed up your construction and reduce the cost of insurance premiums. Various forms of insurance are essential for construction projects and completed buildings. (With the costs being higher for commercial and mid-rise properties.) This blog will cover the three main factors why cold-formed steel (CFS) will save you money on your premiums.
Lower Risk of Fire & Natural Disaster Damage
A big benefit of steel framing is that it’s non-combustible so it can not burn. Steel can’t initiate or spread a fire. Its melting temperature far exceeds those of a typical structure fire. Because of this factor, structures that use CFS framing tend to have fewer chances of fire and in the event of a fire, have less internal damage. CFS framing will also be less likely to cause less damage to nearby properties.
Steel buildings are also designed to withstand heavy winds. If fact, it is known to be the supreme building material for wind resistance. If you live in an area especially prone to harsh conditions, steel framing is more than likely to be your best option.
Because of the con-combustibility of CFS, builders pay lower builder's risk insurance premiums for CFS than wood framing. And since panelized cold-formed steel framed projects often have accelerated construction schedules, employees may be required to be on-site for less time, which can lower premiums for worker’s compensation policies.
Here is a great example that was written by buildsteel.org on how CFS can help lower insurance cost. “In the case of a 4-story, 500-unit hotel build over 24 months in Ohio. With CFS, the builder’s insurance was $360,000 but had the hotel been built with wood, the same level of coverage would have cost $1.6 million. The insurance savings with CFS was over $1.2 million.”
Reduced Legal Liability
Not only do owners need to consider the legal liability that may result from construction incidents. They also need to think about how building fires can spread to adjacent properties. Because of using two factors, there will be additional costs of insuring their properties.
Commercial and multi-family building projects will require a range of insurance products, and CFS often proves to be a more cost-effective framing option through the entire lifecycle of a building. CFS project can qualify for discounts and other insurance products on that property if it can get qualified as “non-combustible” from an insurance underwriter.
Insurance Products for CFS Construction
CFS has been gaining a reputation to be a much safer, more dependable alternative to other framing materials on the market. Because of this, insurance companies have been rewarding contractors with premium products for the use of CFS. Here are the two major CFS-based insurance programs:
Steel Advantage Insurance program
CFS is at the core of STEEL Advantage. The idea is because CFS is noncombustible, the rest of the fire is greatly reduced compared to other construction materials, which should lead to lower claims over the life of the building. This program was launched by the Steel Framing Alliance and DiBuduo & Defends Insurance Brokers, LLC ( a member of Assurex Global), and provides builders who use steel framing with as much as a 43 percent discount on a broad range of insurance products, making steel framing even more competitive with other construction materials.
Zerch Builders Risk Plan
The US Assure Builders Risk Plan, insured by Zurich American Insurance Co. is designed specifically for CFS-framed construction projects. A new consistent classification of steel framing as non-combustible can reduce premiums when compared to combustible frame construction.
If you have any questions about steel framing give us a call at 800.909.8800 you can also schedule a tour at one of our facilities!