{"id":2550,"date":"2022-04-28T14:18:52","date_gmt":"2022-04-28T14:18:52","guid":{"rendered":"https:\/\/www.homeinsuranceking.com\/blog\/?p=2550"},"modified":"2022-04-28T14:18:54","modified_gmt":"2022-04-28T14:18:54","slug":"inflation-can-impact-the-coverage-you-need-to-rebuild-your-home","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/inflation-can-impact-the-coverage-you-need-to-rebuild-your-home\/","title":{"rendered":"Inflation Can Impact the Coverage You Need to Rebuild Your Home"},"content":{"rendered":"\n
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As inflation continues to rage, it could impact the amount of insurance coverage you need to carry to make sure you can rebuild your home<\/a> if it is damaged or destroyed by a covered peril. According to a report from CoreLogic, the cost of building new houses is skyrocketing due to higher material and lumber prices as well as a labor shortage.\u00a0<\/p>\n\n\n\n

As inflation and supply chain issues push up rebuilding costs, it is important to review your insurance coverage to make sure you have enough coverage to rebuild your home if it is destroyed. <\/p>\n\n\n\n

Following are a few tips to make sure your home is fully protected:<\/p>\n\n\n\n

Verify you have replacement cost coverage<\/strong><\/h2>\n\n\n\n

While most homeowner policies are written as replacement value<\/a>, some insurers may still use an actual cash value policy (ACV) and it is important to understand the difference.\u00a0<\/p>\n\n\n\n

An ACV will take deprecation into consideration when valuing your home\u2019s structure and your personal possessions. This means that your 12-year-old roof and 10-year-old TV will be practically worthless according to your insurance company and your claim check will be much smaller, leaving you a big chunk to kick in when it\u2019s time to repair or rebuild your home and replace your possessions.<\/p>\n\n\n\n

Replacement value coverage will replace your roof and TV with brand new ones of similar quality, regardless of how old they were when you made the claim. While replacement coverage is slightly more expensive, it can be a financial lifesaver if you must make a major claim on your policy. <\/p>\n\n\n\n

Review your coverage levels<\/strong><\/h2>\n\n\n\n

As inflation and other factors push up the cost to rebuild a home, you may need to review and adjust your coverage levels to make sure you are carrying enough coverage to fully rebuild your home. Here are a few ways to make sure your coverage levels are appropriate:<\/p>\n\n\n\n