Home Insurance Updates
Here at CRG Services, we want to make sure our clients are always fully informed about their insurance policies with us. This is why this newsletter is going to be a little different. We are all aware that our country has some supply chain issues currently, which are driving up the prices of a lot of things. Many aspects of our lives are being affected because of this, and unfortunately, insurance is going to be another. This newsletter is going to give an update on what homeowners can expect their home insurance to look like in the near future.
We will preface all of this by saying that most home policies are based on Replacement Cost. When your agent gathers all of the information on your home’s construction, they run a Replacement Cost Estimate (RCE). The RCE is an estimate of what it would cost to rebuild your home, as is, in the event of a total loss, and is the dollar amount that your home is insured for. Once a home policy is written, oftentimes insurance companies will send out a third-party service to inspect the exterior, and sometimes the interior, of a home to verify the home is insured properly.
Cost of Materials
Due to the increase in the cost of materials and labor, many insurance companies are or will be re-evaluating home policies and increasing the replacement cost accordingly upon renewal. Insurance carriers are doing this to be certain that in the event of a loss you are fully covered, and you aren’t in a situation where the cost to rebuild your home is more than your home coverage. However, policyholders should be aware that there could be some larger than normal premium increases on your home policy renewal.
How we help
What policyholders should keep in mind is that the increase in coverage is necessary, but your CRG agent knows the increase in premium does not necessarily need to happen. Your agent receives a copy of every home renewal and thoroughly analyzes the policy to see if there are ways they can adjust or tweak things to get you the best rate possible. Also, note that moving to another insurance carrier won’t necessarily help because these coverage increases are going to be the same no matter where you insure your home. Trust that your CRG agent is aware of the situation and is ready to do their due diligence to keep your rates consistent.