How Steel Buildings Can Reduce Insurance Rates in Oklahoma

Property insurance in Oklahoma can present a challenge

How This Affects Property Insurance Pricing

Did you know that constructing your home or building with steel can lead to a significant reduction in your insurance rates when compared with traditional construction?

To understand this, let’s walk briefly through the methods with which coverage rates are determined by insurance companies and how steel can help you save on them.

Several factors come into play when determining the amount of ‘Insured Risk’. This is how insurance companies determine what you’ll pay in premiums. You’re more likely to pay lower insurance premiums if your property has a very low risk of being damaged.

property insurance in oklahoma 2

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.

property insurance in oklahoma 3

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.