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.