Non-combustible structures, like those built with cold-formed steel, have better loss histories and are even viewed by insurance underwriters as lower risk. This can translate to lower costs and broader coverage than combustible wood framing.

Insurance premiums are one of the many factors that can determine a project’s final price tag, representing 5% of costs during construction, and up to 10% of
the cost of long-term operation of the structure.

These costs are beginning to escalate as a growing construction industry creates demand for insurance coverage which, in turn, is tightening underwriting capacity. This is prompting developers and owners to take a closer look at different opinions, with many starting to consider insurance beyond simple “protection against loss” to an actual tool for maximizing return on investment.

Using Cold-Formed Steel to Lower Costs

There are several types of insurance to consider when evaluating the costs of a cold-formed steel framed structure, particularly when comparing those costs with a wood construction.

View SIFA study here: SIFA