LONG-TERM COST ADVANTAGES
Insurance Savings
Insurance savings for cold-formed steel
The non-combustibility of steel structures gives them better loss ratings and saves money on both types of Insurance.
Insurance premiums represent 5% of costs during construction (Builder’s Risk Insurance)
5%
& up to 10% of the cost of long-term operation of the structure (Property Insurance)
10%
Cost Comparison Insurance Savings
Project Description:
Hotel/Lodge
4 story, 400 unit
Location
Mason, OH
Construction Value
$120,000,000
Construction Time
24 months
Builders Risk Insurance
Cost Basis Comparison:
Wood
0%
Wood: $0.60 to $0.80/$100 Construction Value
Steel
0%
Cold-Formed Steel: $0.12 to $0.18/$100 Construction Value
Insurance Premium Comparison:
Wood
0%
Cold-Formed Steel: $0.70 (average cost) x $120,000,000 x 2 years =
$1,680,000
Insurance Premium Comparison:
Steel
0%
Cold-Formed Steel: $0.15 (average cost) x $120,000,000 x 2 years =
$360,000
SAVINGS: $1,320,000
Property Insurance
Cost Basis Comparison:
Wood
0%
Wood: $0.12 to $0.14/$100 Final Value
Steel
0%
Cold-Formed Steel: $0.07 to $0.08/$100 Final Value
Insurance Premium Comparison:
Wood
0%
Wood: $0.13 (average cost) x $120,000,000 x 1 year =
$156,000
Steel
0%