CNBC published a great article about the rising construction cost prices, namely lumber, that is impacting homeowners insurance prices. When this story was published in February of this year, lumber had already gone up 112% in price since February of 2020. Due to these issues, reconstruction costs of homes are increasing and leaving insurance carriers to have to step up the Coverage A (Dwelling Coverage) limits on home policies. The Dwelling Coverage is the limit used when your home either needs to be repaired or re-built, and if this limit is not sufficient to cover a full re-build from the ground up, that leaves the policyholder (YOU) with a gap that would have to be paid out of pocket!
Check out the article and see how lumber prices are affecting multiple aspects of the real estate industry as well as your insurance.
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This blog will have articles written by members of the Stephen Turner Agency as well as other relevant articles we find. We want to ensure you have the most up to date info on the insurance industry so you can make the best choices for your family!