Inflation & Homeowners Insurance | Acrisure Viewpoints
Inflation is dominating U.S. headlines. According to Forbes, inflation stands at 7.9% inflation as of February and experts project continued climbs in the second quarter. This is apparent on store shelves, in climbing home prices, and especially when we fill up the gas tank – but do you know the implications for insurance?
With many new homebuyers entering the market, understanding the relationship between inflation and homeowners insurance is critical. So, too, is having a Partner who can help you make important decisions for your home.
As the costs soar, so does the potential replacement cost of your home. That means that if your home suffers damage, the amount you have insured prior to inflation may not cover the actual cost of those repairs right now.
“Homeowners are doing their due diligence and unfortunately still don’t have the coverage to pay for repairs,” said Michael Holzman, Vice President and COO of Cumbre, an Acrisure Partner. “I attribute this to the rising cost of materials and labor. If the unexpected happens, those additional costs become a burden for the homeowner. The best course is to work closely with your broker to ensure you have the right protection to weather a storm and stand strong on the other side.”
Fortunately for homeowners, Partners like Cumbre and others across Acrisure are well-versed in these and other implications on coverage. Find an Acrisure Partner today to get started.
Important Information:
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