Inflation is not new, but it’s expected to reach unprecedented levels. Why?
Home inflation factors include:
- Increase in cost of building materials
- Construction firms experiencing project delays
- Contractors having difficulty finding workers
- Supply chain disruptions
Auto inflation factors include:
- Increase in repair costs
- Increase in new car prices due to limited inventory
- Increase in used car prices
- Increase in hourly labor
- Increase in rental car costs
Has your coverage kept up with inflation?
Rising replacement costs mean what used to be covered by your policy may no longer be sufficient. This can impact everything from the cost to rebuild your home to the amount of rental car coverage you’ll need to avoid paying out of pocket.
For example, if your policy currently has $500,000 in Coverage A to rebuild your home, you may now need $600,000 in coverage with the jump in materials and labor costs.
Now may be a good time to review your policy with your agent and consider:
- Increasing your coverage to avoid potential gaps in the current market
- Any renovations you made this past year
- Higher deductibles ($1,000 on auto, $2,500 on home) are becoming more common
- Current policy discounts
- Bundle your home, auto and other coverage for better pricing.
Connect with your agent today at 877-381-3570 to learn more.
Disclaimer: This article is provided for informational purposes only and does not purport to address every possible legal obligation, hazard, code violation, loss potential or exception to good practice.