Jul 22, 2022|

How Inflation has Impacted Your Home Insurance Policy

It’s hard to turn on the television or even walk down the street without hearing the word inflation. Even if you don’t know exactly what it means or what caused it, you’re forced to confront the issue at the grocery store or gas pump where prices have skyrocketed in recent months.

Couple sitting on their back porch.
 

Not only have many of the items we purchase daily increased in price due to inflation and supply chain issues, but so have building materials such lumber, concrete, and steel. According to the National Association of Home Builders, there was an 8% increase in building materials at the start of 2022, a 20.4% increase year-over-year, and since the beginning of the pandemic, building materials are up 33%.

Those increases are having a direct impact on many homeowners, and they may not even know it yet. Required in the purchase of most homes is a home insurance policy—the bank wants to make sure their investment is protected, after all. That policy protects against damage to the home and the cost to replace the entire structure should it be destroyed by fire or natural disaster, for example. This means it could cost a lot more than anticipated to rebuild your house and ultimately, your policy may not be protecting your most valuable asset like you thought it was.

Let’s be neighbors.

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So, what can you do? First, review your insurance policy and make sure you understand the coverage you have. For example, you might have inflation guard coverage, which means you pay an increased premium that helps cover the gap between the original cost to replace your home and the cost to do so now due to inflation. Think of it like gap insurance for your car. You may also want to review how much you’re paying in insurance premiums. Inflation and other factors, like replacement cost, have caused premiums to increase substantially.

The only way to truly know if your house is underinsured is to contact your insurance provider. At Vivint, our trained and licensed insurance agents are standing by to help you with this information and provide you with an up-to-date replacement cost estimate for your house.

Vivint Insurance is a full-service, in-house-licensed insurance agency and we partner with top carriers to find you the best deals. We offer policies that cover your home, auto, rental, boat, RV, jewelry, and so much more. Having Vivint equipment in your home may also reduce the likelihood of an insurance claim, which means you could save even more on insurance.

Switching to Vivint Insurance is easy and not only could you save money, but you’ll sleep better knowing your house is fully protected against disaster. Call us today at 855.232.0077 to get a current estimate.

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