Home insurance should help you rebuild if your home is damaged beyond repair or destroyed. Still, the increasing cost of building materials and supplies — not just from general inflation, but from sudden demand as well — can make the cost of rebuilding suddenly exceed your insurance coverage limit. Trahan Insurance Agency LLC wants to show you how you can protect your home in Griswold, CT, and avoid being stuck with a larger repair bill than you had anticipated.
You Can’t Predict Inflation or Demand
When you buy a home insurance policy, you arrange for coverage for a certain amount of the value of your home should you have to rebuild it after a qualifying disaster. However, that amount won’t automatically increase to account for price increases that occur when there’s a sudden surge in demand for building materials. Nor does it account for sudden spikes in inflation. If you need to rebuild your home and the cost of materials has suddenly increased, your insurance may not cover the actual cost of rebuilding at that time.
That is, unless you have an endorsement known as extended replacement cost. This provides extra coverage, up to 50% more than your basic policy covers. That’s a nice buffer zone that helps save your bank account should you need to rebuild. You can set a different, lower percentage if you don’t want 50%. The coverage typically doesn’t exceed 50%. Always ask your insurance agent about this, because some companies offer it only as an optional endorsement that you need to purchase separately.
Insurance agents like those at Trahan Insurance Agency LLC know that Griswold, CT homeowners want to protect their homes. Contact us to discuss additional endorsements that offer more coverage, giving you some breathing room.