Establishing the Value of Your Home

Establishing the Value of Your Home

When you think of the value of your home, you probably think about what it would sell for; however, when it comes to insuring your home, you have to consider instead what it would cost to rebuild in the event of a loss—a number which is often much higher.

We at Penny Insurance Agency are dedicated to ensuring that your home is adequately insured for the full cost of reconstruction. Each year, we work with Chubb Insurance to ensure our estimated reconstruction costs are in line with current construction pricing, including:

  • Analyzing residential construction cost data in the western North Carolina area, tracking residential construction cost trends;
  • Reviewing cost trends for key construction components using national data from the Bureau of Labor Statistics;
  • Conducting interviews with local high value home builders;
  • Establishing replacement costs that are in sync with the types of claims typically compensated after a loss.

What goes into calculating replacement costs?

If you suffer a loss in your home, many factors must be considered when rebuilding, such as:

  • Materials and Labor Costs—Prices of building materials and construction labor continue to rise. In the last 12 months, the cost of items such as concrete, custom cabinetry, windows and doors, light fixtures and wood siding have risen between two and four percent. Labor has gone up approximately three percent.
  • Quality—Hire skilled craftspeople who will restore your home with the same quality materials and detailed work as before the loss.
  • Speed—The goal is to get you back into your home as quickly as possible, therefore we often pay a premium price for contractors.

What does this mean to you?

Given all of this, it is important to be sure that your home is insured to its full replacement value. If you’re concerned that your home may be underinsured, contact Penny Insurance Agency today to arrange a consultation. Furthermore, alert your agent if you renovate or improve your home in any way. Even a small renovation could potentially render your coverage amount too low.

Your home is one of your most treasured and valuable assets. Connect with a Penny Insurance Agent today to discuss your options in establishing your home’s value and ensuring it is fully protected. Your protection is our priority.

Penny Insurance Agency Now Represents PURE Insurance

Penny Insurance Agency Now Represents PURE Insurance

HENDERSONVILLE, N.C.—Penny Insurance Agency will now represent Privilege Underwriters Reciprocal Exchange (PURE) Insurance. PURE Insurance focuses exclusively on the high net worth personal lines insurance market.

“Our decision to represent PURE Insurance allows us the opportunity to service another market for high net worth,” Will Penny, President of Penny Insurance Agency, said. “PURE Insurance is the pinnacle of property and casualty insurance for the high net worth marketplace. Being an independent insurance agency, we wanted to offer our clients the best possible options rather than just one company.”

About Penny Insurance Agency

Penny Insurance Agency is an independent insurance agency serving Western North Carolina and Upstate South Carolina, specifically Tryon, Hendersonville, Asheville, Landrum, Campobello and Spartanburg and is licensed in multiple states. Founded in 1931 with a mission to provide the very best insurance protection at the most affordable price, Penny Insurance is still serving as a leading independent insurance agency for families and businesses. Contact Penny Insurance Agency at its website or by calling 828-692-9171. Connect with Penny Insurance Agency on Facebook and Twitter.

About PURE Insurance
Privilege Underwriters Reciprocal Exchange (PURE) is a member-owned reciprocal insurer dedicated to creating an exceptional experience for responsible high net worth individuals and families. PURE provides customizable coverage for high-value homes, automobiles, jewelry, art, personal liability, watercraft, flood, fraud and cyber fraud to more than 75,000 responsible, high net worth families throughout the U.S. Inspired by some of the finest policyholder-owned companies, PURE emphasizes alignment of interests and transparency.

PURE’s low cost of capital, careful member selection and proactive risk management all contribute to highly competitive rates. In return for a fee, PURE Risk Management, LLC acts as Attorney-in-Fact for PURE. PURE membership is subject to an executed Subscriber’s Agreement & Power of Attorney. For more information or to find a local broker, visit You can follow PURE on Facebook, Twitter, LinkedIn and Instagram.

The General Liability Environment

The General Liability Environment

Legal, Medical and Emerging Trends Affecting Liability Losses

In the past few years, there are a number of legal and medical issues that, when combined, have driven liability costs even higher. We partnered with our friends at Liberty Mutual Insurance to explain some of the elements that are causing liability costs to rise as well as a few steps to keep you and your loved ones protected at the best value.


Escalating Verdicts—Cases going to trial result in higher paid costs. While headlines have focused on auto liability, we see this impacting general liability as well.

Litigation Funding—Outside investors are fronting legal fees, resulting in more cases going to trial, which can drive up claim severity.

Traumatic Brain Injury—Plaintiff attorneys are including TBI at the onset of claims, leading to more medical costs and life care plans. TBI claims have grown in recent years.


Medical Inflation—In recent years there has been a two percent increase in medical inflation, a 2.4 percent increase in prescription drug inflation and a 5.6 percent increase in hospital cost inflation.

Opioids—Average costs are higher when patients are dependent on opioids. New opioid treatments and other newer risks facing businesses today can create challenges for employers if not managed effectively.

Wellness—The aging population and overall decline of our health and well-being is putting pressure on costs. The increase in co-morbidities and preference for non-surgical and non-opioid treatments are driving use of physical medicine therapies.

Inability to Manage Medical—Unlike workers compensation claims, insurance carriers have little influence on how medical insurance is managed.

Emerging Trends

Violent Events—Active shooters and other crisis situations are causing organizations to re-assess their risk and readiness.

Technology—Data and technology are disrupting how we do things. From A.I. (artificial intelligence) and autonomous vehicles to data-driven environments, these advancements can help us be safer, but not without risk. Technology-sensor-loaded gear in the form of vests, glasses, gloves and more, may help improve workplace safety and productivity. But, it’s also in its infancy, so you should review information carefully and identify objectives and potential impacts before moving forward.

Sharing Economy—The lack of clarity in where coverages begin and end in the sharing economy is driving the need for custom insurance solutions.

What Can You Do?

Partner with an insurance carrier who understands your industry and your unique risks and can create a tailored solution specific to your business.

Get extra protection when you need it most. Make sure you have appropriate umbrella and excess liability coverage.

Disaster preparedness planning can help you identify vulnerabilities and dependencies in the event disaster strikes.

Expert claims management for the best possible outcome can impact your total cost of risk.

Risk control resources and a packed calendar of webinars and in-person training to help you identify and mitigate risk. Topics include contractual risk transfer, industry-specific risk improvement tools, product liability and more.

With an ever-evolving landscape, liability insurance can be difficult to navigate. Here at Penny Insurance Agency, your peace of mind is our priority. Give us a call today to connect with a Penny Insurance agent to discover your best liability coverage options.