In commercial insurance, a key component of your property coverage is determined by the building construction type. Not only does this help determine the cost of building materials/reconstruction (and the associated long-term maintenance costs), it also has significance in the event of a fire. According to Verisk/ISO (Insurance Service Office), there are six construction “classes” that help determine rates based on the building’s susceptibility to fire damage. Class 1 is the least fire resistive and Class 6 is the most fire resistive. Here’s a brief overview of the six classes as described on the Verisk website:
Class 1 - Frame - Buildings with walls, floors and roofs made of wood or other combustible materials (this includes brick veneer or metal-clad exterior used for appearance).
Class 2 - Joisted Masonry - Exterior walls are noncombustible (brick/masonry) but floors and roofs are wood/combustible.
Class 3 - Noncombustible - Exterior Walls, floors and roofs are made of non-combustible or slow-burning materials like metal, gypsum (drywall) and back in the day asbestos.
Class 4 - Masonry Noncombustible - Exterior walls made of masonry, with roofs and floors constructed of noncombustible materials.
Class 5 - Modified Fire Resistive - Structural elements on the building (walls, floors roofs) have at least a one to two hour fire resistance rating.
Class 6 - Fire Resistive - Structures with at least a two-hour fire resistance rating (reinforced concrete or protected steel. This is the highest rating and most fire resistive.
So, when your agent is working on a commercial property quote and has a bunch of questions about the construction of the building, this is part of the reason why. In some cases, the building construction type is obvious, other times (if the property is in Idaho) we can reference Commercial Property Evaluation Summaries from the Idaho Survey and Rating Bureau (ISRB), or if needed, it may require a site visit or inspection from your agent or the carrier. If you need coverage for your commercial building, give us a call today!