How current events and trends affect your insurance coverage

Published: May. 16, 2022 at 5:16 PM EDT
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HARRISONBURG, Va. (WHSV) - Inflation, the prominence of natural disasters and a population shift toward the coast leave many without the insurance coverage they need.

“Most homeowners across the US are under-insured. They don’t have enough dwelling coverage to replace their home at the current cost,” said Mark Friedlander with the Insurance Information Institution.

According to Friedlander, it’s probably time to call your insurance agent, so you know you’re prepared.

“We’re seeing replacement costs actually more than double the US inflation rate,” he said.

That replacement cost is how much it costs to rebuild your home as it stands today.

“Over the past year, our analysts showed more than 16% increases in the average replacement cost for homes across the U.S.,” Friedlander said.

It’s not only the costs of home repairs that are increasing, though. The same is true for car repairs. The Insurance Information Institute reported replacement part costs are up about 13%.

However, inflation isn’t the only reason to look over your policies.

“We just look at the natural catastrophes we have been facing across the US over the past few years,” Friedlander said, citing tornados in the Midwest and wildfires in Colorado.

Many who need flood insurance, for example, may not have it simply because they don’t expect to need it. On top of that, many are moving to the coast, where disasters are common.

“With more homes in harms way, the more problems. As a result, larger losses. Larger volume of claims,” Friedlander said.

While adjusting your insurance coverage may cost more month to month, it may be the difference between being covered and not.

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