With Building Costs on the Rise, How Well Are You Protected?
The real estate market is in a frenzy like we’ve never seen before. Houses are selling on the same day for 30-40% over asking price with multiple cash offers.
This is great for anyone who is selling a house but there’s a harsh reality we’re trying to protect our clients from.
Here is the Situation
Developers cannot keep up with demand because lumber prices are up nearly 200% year over year.
Most insurance plans only have a 4% inflation guard.
Last year prices rose 20% followed by another 20% this year (and still continuing to rise.)
EXAMPLE:
Hypothetically, let’s say you were building a 200 sq ft deck this summer.
In April of 2020, the materials for the deck would have cost $936.
As of April of 2021, the same materials for that deck now cost $3696!
Why is this Important?
In the event of a total loss or significant damages, your current policy may not cover the full inflated costs of materials.
If you have a $200,000 house, your current policy with a 4% inflation guard will not cover today’s prices with inflated costs of building materials.
We do not want our customers facing unnecessary issues in an already difficult time so we’re urging you to schedule time to speak with one of our agents to review your policies so we can make sure you’re fully protected.
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