As construction costs rise, think about your homeowners’ coverage



Homeowners should consider rising construction and maintenance expenses when choosing their insurance, especially as hazards associated with weather and the environment increase.


For the purposes of homeowners insurance, rising interest rates and prolonged disruptions in the supply chain for building materials can have an impact on repair and replacement prices.

But according to a recent survey by the American Property Casualty Insurance Association (APCIA), roughly two-thirds of homeowners with insurance may not have certain essential extra protections, such as automatic inflation guard, extended replacement cost, and building code/ordinance coverage, which could better safeguard their investment.


Karen Collins, assistant vice president of personal lines at APCIA, claims that “inflation, recent supply chain issues, and increased demand for skilled labor and construction materials following unprecedented

Prior to hurricane season, homeowners must assess and, if necessary, renew their insurance to keep up with escalating rates.



Today, the majority of homeowner’s policies provide replacement cost coverage for structural damage, but it’s a good idea to double-check your policy, especially if your house is older.

Replacement of damaged property with materials of comparable sort and quality will be covered under a replacement cost policy.


The Declarations Page usually includes the insurance restrictions in Section I, Coverages, A. Dwelling.

Up to this sum, your insurer will cover the cost of rebuilding your house.

Even if you haven’t made any improvements, you can be underinsured if the policy limitations on your homeowner’s insurance haven’t changed since you acquired your house.


When policies are renewed, many insurance contracts have an “inflation guard” language that automatically raises the limit to suit local building prices.

Whether this clause is missing from your policy, see if you can add it as an endorsement.


The consistent increase in natural disaster losses over the past few decades has increased the risk and possible expenses.

The Atlantic hurricane season is predicted to be “far above average” this year, while wildfires are beginning earlier, causing more damage, occurring in more states, and taking longer to put out.




I provide advice on how to adequately insure your home for a disaster, which is especially crucial given the state of the market and the growing risk of disaster.