This moment of high inflation offers agents an opportunity to add value to their clients by alerting them to re-evaluate their home insurance policies. The vast majority of homeowners have never built a home or renovated their current home in a while and they may not be aware just how much more expensive it is to do so…. Renters too might consider the cost of replacing furniture….
Oil price sticker shock does not exist just at the gas station: oil is in almost all plastics….including PVC piping for plumbing and other building materials. With much higher commodity prices globally, supply chain issues mostly fueled by COVID, excessive demand and inadequate planning for a massive demand surge, all building costs more these days, everywhere. This is a good time to evaluate insurance policies to be sure the replacement costs you have reflect current market conditions, for the structure, the finish out AND contents. I’m certain all would cost much more to replace today than they did three years ago. Even using a 2% inflation rate, replacement costs would rise over 10% every 5 years.
– Leonard Steinberg | COMPASS