Rising Repair Costs: Does Your Home Insurance Have Enough Coverage?

Protecting Your Home in a Changing Market

If you haven’t reviewed your home insurance policy in a while, now is the time. With the rising cost of materials and labor, many homeowners are discovering that their coverage may not be enough to fully rebuild or repair their home in the event of damage. So, how do you know if your policy is keeping up? Let’s break it down.

Why Are Home Repair Costs Rising?

Several factors have driven up the cost of home repairs and construction, including:

Inflation: The cost of materials like lumber, steel, and roofing has surged.
Labor Shortages: Fewer workers mean higher wages and longer wait times for repairs.
Increased Demand: More extreme weather events have led to a spike in home repairs and rebuilding projects, making resources scarcer.

Does Your Policy Have Enough Coverage?

Many homeowners assume their policy will cover the full cost of rebuilding—but that’s not always the case. Here’s what to check:

Replacement Cost vs. Market Value – Your policy should be based on what it costs to rebuild, not your home’s market price. The two can be very different.
Extended or Guaranteed Replacement Coverage – Some policies offer extra coverage if rebuilding costs exceed your standard limits. This can be crucial in today’s market.
Updated Coverage Limits – If you’ve made home improvements (like a remodel or addition), your policy may need an update to reflect your home’s current value.

How to Stay Protected

Review Your Policy Annually – Meet with your insurance agent to go over your coverage and adjust if needed.
Keep an Updated Home Inventory – Document your belongings and any home upgrades to ensure accurate replacement cost coverage.
Ask About Inflation Protection – Some policies automatically adjust coverage based on rising costs—check if yours does!

Peace of Mind Starts with the Right Coverage

At Sea Mountain Insurance, we’re here to help you stay protected, no matter how the market shifts. If you’re unsure whether your home insurance is keeping up with rising repair costs, reach out to our team for a policy review. A quick check now could save you thousands down the road!