Home prices seem to be the hot topic everywhere right now, coffee talk, news, radio… it’s everywhere. The rising cost of building supplies could impact the cost of homeowners insurance, although it’s still too early to tell by how much.

The most well-documented price hike is the lumber market. The cost of lumber has nearly quadrupled within one year. The large reason is due to the mills in Canada being shut down due to COVID restrictions.

However, lumber is not the only material that has been drastically affected. Other pertinent materials such as windows, doors, tub inserts, paint, and insulation have all experienced a drastic change. Items that used to be ordered and delivered within a week are now experiencing 12 to 16 week setbacks. Retailers and wholesalers have now applied a significant rate increase on products due to the demand itself.

The burning question for insurance is, do I have enough coverage? Luckily most policies haven’t faced any major issues because there are certain coverages built into policies to cover price fluctuations, that however, is only if your limit was adequate prior to the COVID surge. Therefore, it’s just a matter of time before the insurance market catches up to the cost of building. Our talented team at Coburn Insurance Brokers, are happy to discuss the intricate coverage options and provide several comparables so that you can more easily navigate through this housing madness with confidence.
 

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