Building Values in the Post-Covid Inflation
If I’ve heard it once, I’ve heard it a thousand times. The words have been spoken at most casual and business conversations in 2021. It’s the all-too-familiar sentiment: Have you seen the cost of building materials these days?
Oftentimes, the corresponding thoughts are what would I do if I had a loss and had to rebuild my home, garage, business, etc. While no one wants to think about a life changing event such as a loss of property it is important to be considering the “what-if” of the entire scenario.
Many insurance carriers require buildings to be insured for the full reconstruction cost. Agents have reconstruction guides used to come up with the full insurance value of a given building. These cost guide programs are to be updated on a quarterly basis to reflect fluctuations in the economy both nationally and locally. Unfortunately, the insurance carriers do not typically update their policyholders insurance value without interaction with the client or agent. So, unless you have recently changed insurance carriers now would be a good time to consider the following:
- Schedule a review with your agent to discuss.
- Review your current policy independently.
- Ask for the reconstruction guide to be recalculated for your property.
- Assess the improvements made to your home.
- Be sure to tell your agent about the updates you have made to your property.
We would all like to think pricing will return to pre-pandemic values, but there is no guarantee as to when things might reset. Be sure to seek the advice of an insurance professional when considering protecting your hard earned property assets.