ALBANY, Ga. (WALB) – Recently, home values have been rising across the country.
Wednesday, Jim Wallace of WALB was joined by Steve Perrine, a State Farm insurance agent in Albany.
“Steve, home values have gone up a lot recently. Should people be thinking about their insurance coverage?” Wallace asked.
“Absolutely, Jim. Since COVID hit, and during this pandemic period, we have seen home construction prices increase by around 30%. The basic home policy aims to rebuild your home in the event of total loss. And as you can imagine, if homebuilding prices go up 30%, the typical homeowner needs 30% more coverage to make sure that if the worst happens, we can put things back together” , answered Perrine.
“So what should people do? Hurricane season is approaching, and that’s when people should probably be thinking about this sort of thing.
“Yes of course. In the case of our State Farm Owners Policy, and other companies doing something similar, we have inflation protection built into our policies. Thus, consumers are likely to see an increase in housing coverage when renewing their property. And again, we do it to protect them. But as you can imagine, there are premium increases to match. They are not 30%, but it would not be uncommon to see an increase of 5 to 10% in recent years. And so people are starting to see it and feel it. We can review deductibles. We may review other rebate programs. But yes, of course, that’s where the benefit of an agent comes in. Consumers and viewers should definitely be thinking about an owner review at this point,” Perrine said.
“Because I also know that the price of materials has gone up a lot, in case of repair,” Wallace said.
“Absolutely, that 30% is made up of labor, pressures and cost of goods. And of course there are supply chain issues. The one people pay the most attention to, wood. News a few years ago, lumber prices had gone crazy. But everything else is up, so this combination of labor and materials contributes to this roughly 30% increase in the cost of rebuilding a home today compared to two years ago.
“So a phone call or an email to your agent might be a smart move right now,” Wallace said.
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