How Steel Buildings Can Reduce Insurance Rates in Oklahoma

Property insurance in Oklahoma can present a challenge


There’s a reason why Oklahoma is ranked #9 in the nation for wind resources. Things get more than just breezy in this state, which is why insurance rates for commercial buildings are higher than in most places. This presents a challenge for those looking for long-term, sustainable investments in commercial construction projects. While steel might be more expensive on the front end, the total cost of ownership will be much lower. This is just one example of how steel is superior when it comes to choosing a more investment-friendly commercial building type.

Business owners and real estate stakeholders in Oklahoma are more likely to choose steel when constructing new buildings, as the insurance rates are lower. Are lower insurance rates something you’ve considered when estimating the cost of ownership for your new facility?

Key factors that help insurance companies decide what your rates are:

  • The type of structure. Is the building system and its structural materials strong enough to withstand inclement weather? How damage-resistant is the structure?
  • The age of your structure.
  • The size of your structure.
  • Location. What level of quality does the land have and how large is it? What does the real estate market in the area look like?
  • Occupancy.
  • Business aspects. Are there any materials such as chemicals, standing inventory, or specialized machines used in the structure that raises the risk of damage? What business is the structure used for?
  • Risk of damage. What is the security situation in the area? Is there a higher risk of earthquakes, fire, gale-force winds, flooding, theft, hail, lightning, blizzards, and more occurring?
  • Safety add-ons. Does the structure have additional safety features like sprinkler systems and smoke alarms?

In all, the type of structure is one of the most crucial determining factors of insurance prices.

Capital Steel Workshop Building

Why You Pay Less With Steel Buildings

Property owners in Oklahoma know that insurance is a significant investment. Premiums are estimated by insurance companies by determining the likelihood of paying out for damages commensurate with what it will take to replace or repair such a structure.

There are naturally higher costs for repair or replacement of structures with more square footage.

If you have a structure that is highly resistant to damage, it reduces the risk for insurance companies and lowers your premiums consequently. Replacement costs are also lower for insurance companies if you have a more economically constructed building. This also acts to reduce insurance rates.

Capital Steel Auto Shop Building with GenStone

Why steel buildings in particular are the perfect option for construction in Oklahoma:

  • Steel buildings are pre-engineered to withstand adversity and the harshest climatic conditions. Steel has a far higher strength-to-weight ratio which makes it resistant to damage from heavy snows, hurricane-force winds, and earthquakes.
  • Steel is noncombustible and has a lesser risk of being damaged by fire.
  • Steel is inorganic and can keep out termites, mildew, and mold.
  • Steel is electrically conductive, which is a good thing because lightning strikes do minimal damage, unlike wood-framed buildings. With a steel building that is correctly grounded, lightning goes into the ground by flowing through the framing while doing minimal harm.

With these reasons in mind, it is clear to see why insurance rates are necessarily lower for Oklahoma steel buildings. Remember that different insurance companies have different rates. So, while requesting a quote, inform the agent that you are looking to insure a steel building. And if you have added safety measures, do not hesitate to include that information as well.