There is one important question any property owner should be asking themselves every year. “Am I still properly insured?” Inflation and increasing replacement costs put you at risk of being underinsured! We take a look at this issue and hopefully steer you away from making this potentially very costly mistake.

“Will insurance cover all costs to rebuild after suffering a catastrophic loss?”

Causes for concern

• Lumber costs have risen as much as 375% since mid-2019
• The average home built today costs $40,000 more than last year
• Labor shortages and supply-chain shortages have caused unbalanced supply-to-demand issues
• Appraisals older than 18-24 months don’t reflect property value changes
• Policy limits based upon old appraisals only provide coverage based off potentially inaccurate valuation

It is important to know which types of damage your policy covers, excludes or charges a separate deductible for. Familiarize yourself with what type of coverages you have and compare them to your most recent appraisal. If you haven’t had an appraisal within the last year or two, your structure may not be valued properly. Without knowing what it is currently worth, it will be difficult to determine what coverages are appropriate.

We encourage you to contact your agent if you have any questions. Reliable Agency, Inc. we never sells you unnecessary policies. Instead, we make suggestions that put you in the best position possible if any claim occurs. Because inflation and increasing replacement costs put you at risk of being underinsured, we want you to take a proactive approach and make policy coverage updates. Speak to your Reliable agent today!