In today’s world of declining home and commercial market values, there often is a misconception that there is also a corresponding decline in insurance replacement values. This is a misconception that can be very costly to both the homeowner, and the business owner. In reality, there is very little correlation between the market value of a property, and the corresponding insurance replacement value.
Due to extreme weather related disasters in recent years, particularly 2011, we are seeing an increase in building and construction costs. In fact, last year set a record for the cost of insurance related losses due to weather conditions. The result was an increase in the cost of typical construction materials (drywall, lumber, copper, etc) of 6% to 30%. Construction costs are on the rise, and it appears that 2012 will continue the trend.
As your insurance agent, our goal is to work with you to make certain that you are properly covered should you experience a loss. Please feel free to contact one of our insurance professionals to review your coverage, and make sure that you are properly covered.
