Why is my home insurance going up?
Why is my home insurance going up? One of the consequences of the pandemic is the increase in the cost of construction materials, due to the forced closure and the limitation of production that the sector experienced for more than a year.
On the other hand, historically low bank interest rates, low inventory of homes available on the market, and unsatisfied demand have created the perfect formula for home prices to skyrocket.
In this scenario, it is normal that the replacement cost of property has gone up. In other words, insurers would have to respond with a greater outlay of money to any covered damage. Consequently, the premiums for most home insurance policies have increased.
But imagine that you have to face, on your own, the reconstruction of a roof or the collapse of a wall, after the passage of a storm. According to Bloomberg magazine, in the last year alone, the price of wood increased 304%. A percentage that contractors do affect their invoices when they undertake construction work.
In reality, although the replacement cost is higher, insurers have not passed the entire increase on to their premiums. Statistics indicate that, on average, insurance premiums have risen 32.55% since 2016. Why is my home insurance going up?
With that data in hand, now more than ever, you should have insurance that protects your most precious asset.
Call Univista Insurance and get the cheapest home insurance in Florida.