HARRISONBURG, Va. (WHSV) – Inflation, the scale of natural disasters and the shift of population to the coast are leaving many people without the insurance coverage they need.
“Most homeowners in the United States are underinsured. They don’t have enough housing coverage to replace their home at the current price,” said Mark Friedlander of the Insurance Information Institution.
According to Friedlander, it’s probably time to call your insurance agent, so you know you’re ready.
“We find that replacement costs are actually more than double the rate of US inflation,” he said.
This replacement cost is what it costs to rebuild your home as it is today.
“Over the past year, our analysts have shown increases of more than 16% in the average replacement cost of homes across the United States,” Friedlander said.
However, it’s not just home repair costs that are rising. The same is true for car repairs. The Insurance Information Institute reported spare parts costs increased by approximately 13%.
However, inflation is not the only reason to review your policies.
“We’re just looking at the natural disasters that we’ve faced across the United States over the past few years,” Friedlander said, citing tornadoes in the Midwest and wildfires in Colorado.
Many who need flood insurance, for example, may not have it simply because they don’t expect to need it. On top of that, many are moving to the coast, where disasters are frequent.
“With more homes at risk, more problems. As a result, greater losses. Greater volume of claims,” Friedlander said.
Although adjusting your insurance coverage can cost more from month to month, it can mean the difference between being covered and not.
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