{"id":1445,"date":"2018-09-28T15:13:22","date_gmt":"2018-09-28T15:13:22","guid":{"rendered":"https:\/\/www.homeinsuranceking.com\/blog\/?p=1445"},"modified":"2018-10-15T15:07:14","modified_gmt":"2018-10-15T15:07:14","slug":"tariffs-may-push-up-cost-of-rebuilding-after-florence","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/tariffs-may-push-up-cost-of-rebuilding-after-florence\/","title":{"rendered":"Tariffs May Push Up Cost of Rebuilding After Florence"},"content":{"rendered":"
\"Rebuilding

Rebuilding Cost Due to Hurricane Florence:\u00a0One of the largest impacts will be felt in the price of wood, which has already shot up 40 percent from last year.<\/p><\/div>\n

The latest estimates put the property damage totals from Hurricane Florence at $17 to $22 billion and unfortunately the pain is not going to stop there for many homeowners. The aftermath involves cleaning up, filing insurance claims and rebuilding or repairing their home and lives.<\/p>\n

Adding to the bad news is the fact that the tariffs imposed by the Trump administration may drive up the cost of construction materials which will push up the cost of repairing and rebuilding damaged homes in the path of Florence.<\/p>\n

According to contractors and homebuilders, the tariffs will not only up the cost of materials such as lumber, steel and aluminum but also countertops, gypsum (a major ingredient in drywall) and even furniture. The tariffs could end up adding 20 to 30 percent to rebuilding costs, certainly bad news for homeowners.<\/p>\n

\u201cWe\u2019re all going to pay the price for it in terms of higher construction costs,\u201d said Alan Banks, president of the North Carolina Home Builders Association in a recent New York Times article.<\/p><\/blockquote>\n

One of the largest impacts will be felt in the price of wood, which has already shot up 40 percent from last year. The Trump administration recently added a 20 percent tariff to Canadian softwood lumber. The 25 percent tariff on steel and 10 percent tariff on aluminum have already been impacting builders.<\/p>\n

Pain for Insurance Companies and Homeowners<\/strong><\/p>\n

In many cases, the cost of the tariffs will be passed on to insurance companies through higher rebuilding costs. In most cases, this will result in higher premiums for all homeowners in the area, as insurance companies will eventually pass those higher costs on to consumers through higher premiums.<\/p>\n

Whenever insurance companies must make major payouts due to a storm there is a good chance premiums will rise in the near future as they look to recover some of their losses. In other cases, some insurers may decide to pull out of the market altogether leaving homeowners scrambling to find new coverage.<\/p>\n

The bad news for many homeowners is the fact that much of the damage done by Florence was flooding, which is not covered by a standard homeowners policy<\/a>. While South Carolina<\/a> is the second-highest insured state for flooding, roughly 65 percent of homes in flood hazard areas are insured, North Carolina<\/a> is not as lucky with only 35 percent of at risk homes protected against flooding.<\/p>\n

The flooding was so bad during Florence that many homes that fall outside of high risk areas were also flooded, leaving these homeowners on the hook without flood insurance<\/a>.<\/p>\n

According to the New York Times article, of the millions of homes in the Carolinas, only 335,000 are covered by a flood insurance policy.<\/p>\n

Tariffs Will Impact Rebuilding<\/h2>\n

Only two-thirds of the country\u2019s building supplies are produced domestically which means that the recently imposed tariffs will absolutely impact repair and rebuilding costs. Most experts agree that the number one issue will be lumber.<\/p>\n

\u201cWe\u2019re impacted by all of the tariffs, but lumber is the main one,\u201d said Jerry Howard, chief executive of the National Association of Home Builders in the recent New York Times article. \u201cIn a single-family home, lumber is the No. 1 component.\u201d<\/p><\/blockquote>\n

In addition to lumber, contractors are also concerned about the 10 percent tariff that is now being imposed on $200 billion in Chinese imports. This tariff will go to 25 percent in January if an agreement is not reached by then. The impact of these tariffs extends to many other building supplies including flooring, textiles, drapes, and even ceramic tiles.<\/p>\n

Because flooding did most of the damage, many homeowners will be facing higher out of pocket costs as their homeowners insurance<\/a> will not cover the cost of damage. The tariffs will increase the cost of rebuilding not only for insurance companies but underinsured (no flood insurance) homeowners as well.<\/p>\n

Tips for Filing a Claim<\/h2>\n

Here are a few tips for filing a claim after a major disaster such as Hurricane Florence:<\/p>\n