Insurance Savings When Using Cold-Formed Steel

The construction industry continuously seeks materials that improve safety, durability, and cost-efficiency. Cold-formed steel is becoming a popular choice in residential and commercial buildings at no surprise.

What is Cold-Formed Steel?

CFS is manufactured by pressing steel sheets into desired shapes at room temperature. This process enhances the material’s strength and flexibility, making it ideal for framing and structural elements in residential buildings. Unlike hot-rolled steel, CFS is lightweight, easy to handle, and offers precise construction tolerances.

Insurance Savings with Cold-Formed Steel

Insurance companies determine premiums based on the risk associated with insuring a property. Homes constructed with CFS present lower risks in several key areas:

Reduced Fire Risk

    • Homes built with CFS are less likely to suffer extensive fire damage, leading to lower insurance premiums.
    • Some insurance providers offer discounts for homes with enhanced fire resistance.

Increased Structural Integrity

    • The robustness of CFS frame reduces the likelihood of structural failures during natural disasters.
    • Lower risk of damage translates to fewer claims and lower premiums.

Lower Maintenance Costs

    • The durability and pest resistance of CFS lead to fewer maintenance-related claims.
    • Insurance companies often consider the overall maintance costs when setting premiums.

Discounts for Sustainable Building Materials

    • Some insurers offer discounts for using eco-friendly materials.
    • CFS’s recyclability and sustainability can qualify homes for these discounts.


Cold-formed steel offers numerous benefits for commercial and residential construction, from enhanced durability to environmental sustainability. By reducing the risks associated with fire, structural failure, and pests, CFS can lead to lower insurance premiums and provide long-term financial benefits.

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