Building material prices have skyrocketed amid the ongoing COVID-19 pandemic.
According to a recent study by the National Association of Home Builders lumber prices are up 250% since April 2020.
New home construction prices have increased by more than $24,000.
So what does this mean for a property owner who has filed an insurance claim and is facing a significant property restoration project?
Sill’s team of licensed public adjusters, property damage and insurance policy experts, are facing questions from our clients about exploding material costs.
Does my policy cover current prices?
A licensed insurance expert from Sill would need to review each policy to provide an accurate answer to this question.
Will my policy premiums go up if building material prices remain higher?
They could. Your premium is based on replacement cost which is affected by material and labor rates to construct your home or business.
How do rising costs affect my insurance claims?
Some of the tools and software that insurance adjusters use to determine costs may not be updated with current pricing. The result may mean your claim can be drastically underpaid. This is why getting a second opinion from Sill could save you thousands of dollars.
Do price increases mean my property may be under-insured?
Yes, that is very likely. Being underinsured means you may not be reimbursed for the full amount of your loss, but there is another, lesser known ramification of being underinsured. Many insurance policies require you to maintain the correct amount of insurance (and therefore pay the correct amount of premium), if the insurance company believes that you underinsured yourself (and therefore paid less premiums to the insurance company) you may be further victimized by the insurance company enacting a penalty on top of your underinsurance settlement. This doubles the problem if not handled professionally by an experienced adjuster.
Sill is the leading public adjusting firm in North America with more than 30 office locations. We have the most trusted and experienced team in the industry. We help hundreds of commercial and large residential property owners who are faced with disaster each year.
Property damage insurance claims, especially at large commercial properties can turn into a long and challenging process for the property owners. We specialize in handling these types of claims, and our clients settle their claims much faster and, for a larger amount from their insurance company.,
We take the burden of handling insurance claim documentation, damage assessments, and valuation off your shoulders and ensure that the insurance company gives you the coverage you deserve.
With Sill, you can get back on the road to recovery much sooner. If you have experienced any type of property damage contact Sill 24/7 by calling 800-524-0006.