A lot has changed over the last 18 months and it’s hard to keep up. Supply shortages and increasing prices are just a couple of the changes. And, these two changes can have a big impact on the insurance coverage for your home and/or your business.
- Between 2010 and 2020, the median sale price of a new home increased $106,100.1
- Lumber prices have increased 340% from a year ago and are up 67% this year (from January 1 to April 30, 2021).2
- The increase in lumber prices over the past year has added $35,872 to the price of an average new single-family home and $12,966 to the market value of an average new multifamily home, according to the NAHB.2
So how does this impact you?
Even if you haven’t recently purchased a home or made any significant renovations -such as a new roof, patio, bathroom/kitchen renovation or a new addition – now is a good time to review your replacement cost coverage.
As the cost for raw materials rise, so will the costs to replace your home or business should you experience a loss. Keeping pace with rising costs, especially during this tenuous time, is critical. We recommend a review every 2 years.
Even as the value of your home increases over time, its a good idea to work with your agent and review your coverage to be sure your policy meets the current value of your home or business.
How do You Estimate Replacement Costs?
Your agent has several tools available to help you review your policy and make the calculations to be sure you have the right coverage at the right time.
Life Changes
Life changes as does the world we live in. It’s vital to review all your policies on a regular basis to be sure your coverage meets your current needs and future goals. This includes your home & auto policies, business insurance, life insurance and retirement plans and investments.
Call your Dempsey, Weiss Insurance agent today. We’re here to help.
856-358-3900
1 https://www.homelight.com/blog/house-price-history/
2 https://www.cnbc.com/2021/04/30/soaring-lumber-prices-add-36000-to-the-cost-of-a-new-home.html