How Covid impacts your homeowners coverage

| May 21, 2021
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Covid has impacted our lives in so many ways. Some of them obvious and some of them not so much.

 

Specifically, Covid has caused shortages of raw building materials which have caused prices to skyrocket!

 

Have you seen what has happened to the cost of lumber?  Last year a 2x4 cost around $3.40. Today that same piece of lumber is over $8.00! This increased price of lumber could easily add over $40,000 to the cost of rebuilding the average home.  These prices may moderate at some point, they are unlikely to go to pre-pandemic levels.

 

So, what does this mean to you; and how does this impact your insurance?

 

I have three (3) recommendations.

 

The first is to take a look at your policy to see if you have the proper amount of coverage.

 

The second is to look at your policy to see if you have a "Home Replacement Guarantee", which may guarantee to rebuild that home even if it exceeds the policy limit.

 

Third, in the event you don't have a home replacement guarantee, some policies have "Enhanced Replacement Cost" coverage, which would pay 125% or 150% of the coverage A or "dwelling" amount in the event of a significant loss.

 

We all hope the worst of this pandemic is behind us, but in the meantime...if you have any questions, give us a call. 631-744-1393

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