Cost of Materials and Insurance

Cost of Materials and Insurance

April 26, 2023

If you’re a homeowner or on your way to becoming one, you’ve probably heard about increasing construction costs. Home repair and construction costs have been impacted by rising material cost, rising labor costs, and labor shortages. 

Increasing construction costs are making Replacement Costs climb. Replacement Cost is the amount it would take to rebuild your house in the event of a disaster and one factor we consider when evaluating your coverage. Most insurance carriers are increasing coverage amounts on Homeowners policies automatically to account for these increased costs. 

If you’re curious how you can evaluate your own coverage in this challenging environment, here are some items to consider: 

Last Review — When was your last insurance review? If it was a long time ago, your coverage amount could be too low, or even too high. 
Market Value — If you bought your own coverage and you used how much you paid for your home as the value, you could be WAY off. 
Remodeling — Renovations and Additions cost more than ever. Make sure you insure your home for the extra work.
Talk to Your Agent — Ask your agent if your Replacement Cost is higher than it was previously and save yourself from big risks.

Having the right value on your coverage could be the difference between insurance saving the day or you paying out of pocket. Make sure your insurance works for you!

Call us if we can help!