The single most important question to ask right now, as fire season kicks off, is this: If my home were damaged or destroyed by fire, what would it cost to repair or rebuild it?
The second most important question is this: Will my homeowner’s insurance write a big enough check to cover that cost?
Never easy questions to answer, they’ve grown more complicated in the last year, as pandemic lockdowns have led to a rise in building costs, as well as significant changes in how people use their homes.
Simply put, what was enough coverage a year or even six months ago might be too little coverage today.
Building costs on the rise
Consider building materials for a moment. According to the National Association of Home Builders, unprecedented spikes in lumber prices have raised the average price of a new, single-family home by nearly $36,000 since April of 2020. Costs for steel, aluminum and other imported materials and equipment have also risen.
Now let’s consider how your home has physically changed in the last year. Not surprisingly, the pandemic lockdown inspired many Americans to take a long, hard look at their homes and use their free time, and the money they suddenly couldn’t spend on traveling or eating out, to repair and upgrade their living space.
Perhaps you’ve added on a guest room or finished your basement, remodeled the kitchen or the bath, replaced that leaky roof, installed new flooring, or added a porch, deck or swimming pool. If so, the value of your home has increased, as has the cost of the materials you used.
If you found yourself working from home full time, you may have created a proper home office, outfitted with new equipment and furniture. Maybe you’ve launched a home-based business that requires you to stock supplies or inventory. Either way, it’s likely your coverage needs have changed.
Plan for the unexpected
See what we mean when we say there are so many factors to consider?
We know that your home is one of your biggest assets, and we’ve helped you plan for the unexpected. Now let us help ensure that the coverage you have will rise to the challenge of these historic times.
Our insurance advisors will review your policy, taking into consideration any home improvements you’ve made, and determine if the coverage you carry is enough to rebuild your life should the unexpected happen.
Life is filled with surprises. Too little insurance coverage shouldn’t be one of them.