Increased building materials prices, supply chain slowdowns, and a labor shortage in the construction industry have combined to drive home construction costs up. Although the increase has pulled back a bit from the double-digit rate seen this past summer, reconstruction costs are still up nearly 6% on average from October 2020 through October 2021.
If your home insurance doesn’t keep up with this increase, you could find yourself falling short of what you need to rebuild in the event of a loss. Fortunately, Acuity’s homeowners insurance program contains important features to keep you covered.
First, Acuity provides “inflation guard” protection in our homeowners polices. This benefit automatically increases your coverage limits at renewal. We use the latest inflation information to determine how price increases have affected the cost to rebuild your house.
Second, we offer Guaranteed Replacement Cost Coverage to help ensure your home is fully insured. This coverage pays the full cost to repair or rebuild your home, even if that amount is more than the amount used to calculate the price of your policy. And customers who choose our flagship Road and Residence® policy not only receive guaranteed replacement cost coverage automatically, but also enjoy the peace of mind of having a single coverage applying to all property—their home and personal items.
In a time of rising building costs, choosing the right homeowners coverage is important. If you have any questions about your home insurance, please talk to your independent agent. If you want to see what Acuity can do for you, you can get a quote online.