Is Your home Underinsured? The Answer Might Surprise You.
The cost of rebuilding a home has skyrocketed since the pandemic. This has caused many homes to be underinsured, should they need to be rebuild.
Do you know how much your house is insured for in the event that you’ll need to rebuild it in case of a fire or natural disaster? Most people don’t know the answer. They may know that their insurance company has raised the limit on their dwelling by 3-4% every year, but they often don’t check to see if they’re carrying enough insurance, should they need to rebuild.
The Current Dilemma
Insurance companies have tried to keep pace with replacement costs with an ‘inflation guard’ which increases the amount your dwelling is insured for—but it’s not enough post-Covid. Why? The pandemic has caused a huge increase in construction costs including labor, materials, and even the amount of time it can take to find qualified contractors. The inflation guard they’ve implemented is helpful, but hasn’t been keeping up with construction cost increases.
What You Can Do
It’s vital that you take the time to review your homeowner’s policy to find out if your home is underinsured, because most likely, it is. The goal of this article is to educate our customers. At Mitchell-Joseph Insurance Agency, we pay close attention to the insurance industry trends and keep pace with changes that can impact our customers. Get in touch with us today and let’s have a conversation.