By: Advocate Brokerage
Insurance rates have been on the rise for quite some time. Between the rise in natural disasters, the economy, and the impact of the COVID pandemic, there has been quite a shift in the insurance industry. We believe in educating our clients and always try to do our best to share our expertise with you. It’s important to us that you understand why the cost of insuring your home is on the rise. This blog article is designed to share some recent trends that are impacting the insurance industry.
So far, the US has experienced 18 weather related disasters in 2021. That equates to losses far in excess of $1 billion dollars.
New homes have open-floor plans and are built using more synthetic materials which means they burn as much as 6 times faster than older homes. This has resulted in an increase in damage after a fire at home.
The combination of water damage and freezing losses has been on the rise. There has been an increase of more than 10% between 2017 and 2019 alone. These losses are especially acute in New York City apartment buildings.
The increase in luxury homes being built with custom details leads to a higher replacement cost when damage occurs.
It is more expensive than ever to fix and replace a home that has suffered damage. The cost of building materials has increased by as much as 26% on average.
Employers across the country are finding it difficult to find skilled workers and the construction industry is no exception. Nearly 90% of contractors are reporting difficulty in finding craftsman to complete their work crews.
We understand that no one wants to see a significant increase in their homeowners insurance. We strive to find coverage that is sufficient should your home be destroyed and need to be rebuilt. Our goal is to present solutions that are tailored for you, presenting coverage that you need, and that doesn’t leave you vulnerable should the unimaginable occur. The coverage we recommend truly has your best interest at heart. If you have a question or concern, please get in touch with us at 914-723-7100. We are your insurance advocate and are here to help so be sure to put our expertise to work.