SIPs and Insurance: Building Confidence with Formance Panels

When considering insurance for homes built with Structural Insulated Panels (SIPs), it’s essential to address common concerns like fire risks, durability, and overall resilience. At Formance, we understand these concerns and have taken robust measures to ensure our SIPs meet and exceed industry expectations, making them as reliable as—or even safer than—traditional timber-framed homes.

This article explains why loss adjustors and insurance companies should view SIPs as a viable, low-risk option, emphasizing their strong performance in fire safety, seismic events, and durability.

What Makes Formance SIPs Stand Out?

Formance SIPs are composed of:

  • Oriented Strand Board (OSB): Provides structural rigidity and a protective layer.
  • Flame-Retardant Expanded Polystyrene (EPS): Offers excellent thermal insulation while incorporating self-extinguishing properties.

These materials are combined into a high-performance building system that is:

  • Fully encapsulated to prevent exposure of the EPS core.
  • Fire-rated when paired with appropriate linings like plasterboard.
  • Tested and certified to meet New Zealand Building Code standards, including fire resistance.

Addressing Fire Risks with Proven Mitigation

Fire safety is often a top concern for insurers. Traditional non-structural insulated panels (e.g., freezer panels) have a reputation for poor fire performance due to their exposed, flammable cores and metal skins. Formance SIPs, by contrast, are engineered to mitigate these risks.

  1. Encapsulation for Safety
    Unlike freezer panels, the EPS core in Formance SIPs is entirely enclosed by OSB and sealed with construction adhesives. This eliminates the risk of molten core material escaping during a fire.
  2. Fire-Resistant Additives
    Our EPS includes a flame-retardant additive that self-extinguishes when exposed to a flame. Regular production testing ensures this property is consistently achieved.
  3. Fire Resistance Ratings (FRRs)
    Formance SIP walls achieve a 60-minute fire resistance rating with a single layer of 13mm plasterboard. Additional layers can enhance this performance, making our panels suitable for intertenancy and boundary walls.

Seismic Resilience Reduces Risk

Another crucial factor for insurance is a building’s resilience to earthquakes. Formance SIPs excel in this area:

  • Exceptional Bracing Performance: Tests show our panels provide more resistance to racking forces than a concrete slab in residential applications.
  • Ductility Under Pressure: SIPs maintain structural integrity without sudden catastrophic failure, unlike concrete elements.
  • Real-World Proof: During the Kaikoura Earthquake (7.8 magnitude), a Formance-built home located just 47 km from the epicenter sustained zero damage, outperforming timber-framed homes further away.

These qualities translate to fewer claims and lower remediation costs for insurers, making Formance SIPs an attractive option for high-risk seismic areas.

Weather and Durability: Built for New Zealand Conditions

Extreme weather events are increasingly common, and insurance companies must account for their impact. Formance SIPs provide:

  • High Wind Resistance: Proven in Hurricane Ike (230 km/hr winds), SIPs homes remained intact while neighboring timber-framed homes were destroyed.
  • Longevity: Unlike timber, which can warp or degrade over time, SIPs maintain their structural integrity for decades.

Why Should Insurers Trust SIPs?

For loss adjustors evaluating risk, the data on SIPs speaks for itself:

  • Comparable Fire Risk: With fire mitigation measures, Formance SIPs are on par with traditional timber-framed homes.
  • Superior Seismic and Weather Performance: SIPs reduce the likelihood of catastrophic damage, lowering overall claim costs.
  • Durability That Lasts: SIPs outperform timber in terms of longevity, reducing maintenance and replacement expenses.

By embracing SIPs, insurers can provide coverage for homes that are not only safer but also more sustainable and energy-efficient, aligning with the growing demand for green building practices.

Conclusion: Building Confidence Together

At Formance, we’re committed to setting a new standard in New Zealand construction. By combining advanced materials, rigorous testing, and proven performance, our SIPs offer insurers a reliable, low-risk alternative to traditional construction methods. Whether it’s fire safety, seismic resilience, or long-term durability, Formance SIPs deliver peace of mind for homeowners and insurers alike.

Want to learn more about Formance SIPs and their insurance benefits? Explore our resources or contact us directly at [email protected]

Posted 4 years ago by Nick Hubbard