The Insurance Journal reported in a May 2022 article that a new study reveals a majority of homeowners have not ensured their coverage is keeping pace with rising inflation and increased building costs.  The study, conducted by the American Property Casualty Insurance Association (APCIA), demonstrates that policyholders could be left underinsured if catastrophe strikes.

Further, The Harris Poll reports that only 30% of insured homeowners have purchased more insurance or increased coverage limits to compensate for rising building costs.  Additionally, less than half (40%) updated their coverage after completing renovations or remodels during the pandemic.  

The recent increase in home market values doesn't directly impact your insurance.  The key factor today is the increased cost of construction and making sure that your Dwelling limit matches what it would cost today to replace your home 100%.  While total losses are rare, not having your home insured fully may impact large common losses like a tree falling on your home.

Now, more than ever, it is important to conduct an annual review to ensure you have enough coverage to repair or rebuild your home should disaster strike. 

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