Inflation Hits Home

Tuesday, August 8th, 2023 Property

Over the past few years, inflationary pressures have made a notable impact on the economy -- and on home insurance premiums. According to CoreLogic’s U.S. National Building Cost Trends report for Q2’23, building material costs for carpet, insulation, brick and concrete have continued to rise, increasing overall residential reconstruction costs by an average of 1.9% from February to May 2023 nationwide.

In catastrophe-exposed states like Louisiana and Texas, reconstruction costs are even higher than the national average, at 3.1% and 2.5%, respectively. However, only approximately 30% of homeowners have sufficient coverage to account for the higher costs to rebuild their homes after a major loss.

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https://www.insurancethoughtleadership.com/personal-lines/inflation-hits-home-insurance

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