To ensure that a property is properly insured, meaning adequately protected and in accordance with local regulations and guidelines, understanding building construction and how to calculate it is crucial.
As a premier provider of certificate of insurance services, supported by a team of insurance professionals, we help people understand their coverage – and where it’s lacking.
In this blog, we’ll walk through the different factors and calculations involved in building coverage to help you make informed decisions about your property management and ensure your assets’ protection.
What Is Building Coverage?
Building coverage, also known as construction coverage, is insurance protection for the structure of a building. This includes structural elements like walls, roofs, flooring, bathroom features, and more. It also includes any attached elements like garages and permanently installed fixtures such as plumbing, electrical systems, and built-in appliances. Depending on the policy, it may also cover outbuildings, fences, and other external structures.
It is crucial for any property owner to hold and understand building insurance to ensure that their assets are protected from various perils. Knowing the specifics of your policy allows you to make informed decisions about exclusions, requirements, and additional insurance needs you may have.
What Is the Building Coverage Ratio?
In construction, the term building coverage refers to the percentage of a lot’s area that is covered by a building. The building coverage ratio is a metric used to express the proportion of a lot that is covered by buildings. Typically seen as a percentage, this measure helps communicate the density of construction on a certain property.
A related but separate concept is lot coverage, which includes not just buildings on a lot but all impervious surfaces on a property as well, such as buildings, driveways, and patios. Understanding the difference between these two is important for accurate property management and maintaining compliance with zoning regulations. Learn more about what is property insurance for a construction project?
Many municipalities have different guidelines and zoning laws when it comes to building coverage ratios. For instance, depending on the location, different limitations exist to ensure enough open space, manage stormwater, keep up the visual appeal of a neighborhood, etc. Be sure to understand the regulations that govern your area before beginning a construction project so you are not surprised down the road.
How Do You Calculate Building Cover?
Building cover means the area occupied by the “footprint” of a building on a lot. As previously mentioned, it includes all enclosed spaces and any overhanging structures like eaves and balconies. This metric is typically expressed as a percentage, also known as the building coverage ratio.
To calculate building coverage, use the following formula:
Building Coverage = (Total Building Footprint Area / Total Lot Area) x 100
Let’s walk through an example. Say you have a lot with a total area of 10,000 square feet, and the total footprint area of your buildings is 2,500 square feet. Using the formula, the building coverage ratio would be:
Building Coverage = (2,500/10,000) x100 = 25%
So, the building coverage here would be 25%, meaning a quarter of your lot is covered by buildings.
How to Calculate the Covered Area of a Building?
Before you can calculate your lot’s building coverage ratio, you need to get a gauge of how much space a building is taking up on it. To measure the covered area of a building, grab any needed tools like a measuring tape or laser measurer, something to record the dimensions and a calculator. Then, follow these steps:
1. Measure the length and width of the building’s footprint.
2. Multiply the length by the width to get the total footprint area.
3. Add the areas of any overhanging structures or additional levels.
The measurement is simple enough, but be sure to avoid common mistakes like forgetting to include overhanging structures like balconies or measuring only the interior space rather than a building’s entire footprint. Additionally, remember that most times you are calculating building cover, you should include all buildings on a lot, not just a single structure.
Protect Your Property and Your Workers with myCOI
By understanding building coverage, the building coverage ratio, and the steps to calculate the covered area, you can make more informed decisions about your insurance needs and property management.
Still wondering about how to ensure that your properties are properly insured and meeting all pertinent zoning restrictions, or that all of your third-party hires are adequately protected while on a construction job? You’re not alone.
Our team of industry experts has the guidance you need to ensure everyone’s protection while mitigating risk. Book a demo today to learn more.