Insurance Coverage is Critical Amidst Rising Construction Costs
OnFocus – As the cost of building supplies continues to climb, those in the process of building a new home are encouraged to review their insurance policies to make sure they have enough coverage.
“When building or remodeling, you are only insured for a specified amount pertaining to your dwelling structure,” explained Marshfield Insurance President/CEO Nick Arnoldy. “With lumber prices and construction costs continuing to rise, there is often a need for a higher coverage limit.”
For example, if a house’s market value is $200,000, it could be insured for $300,000 assuming that is the replacement/reconstruction value. This might have been enough coverage for that particular home prior to the pandemic, but with supplies harder to acquire and costs rising, the insurance may not be enough any more.
“Construction costs have risen so much. A house built pre-pandemic would likely cost much more to build in this current economic climate,” said Arnoldy. “If you are in the midst of a construction project or in general, it’s a good idea to make sure your limits are still adequate. This can be done by having discussions with your insurance agent or a contractor along with reviewing your current policy.”
Arnoldy encourages anyone in the process of construction or remodeling to work with an insurance agent to make sure that costs are covered in case something were to happen.
For more information, contact Marshfield Insurance at 715-387-4443.
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