The last two years have been anything but predictable, and the pandemic has had a lasting influence on many aspects of life beyond simple mental health and well-being. If you are a homeowner, you may wonder how this affects your costs regarding insurance and how these trends are shaping up now that January is nearly over. Here’s a quick look at what we have observed here at Alexander Insurance that can influence you, as well as noticeable elements that may continue throughout 2022.
The Battle with Supply Chain Bottlenecks:
During 2021 there was a pandemic-induced round of stark inflation, shortages in valuable labor, and other disruptions in the supply chain itself. This caused a 15-year high of the backlog in new home construction and rising costs because of massive demand. Even if your home is already built, the demand for dire repair in the event of a natural disaster can take its toll on the cost of rebuilding. Incidents could occur that could make your present coverage not enough, and if a disaster occurs, you may be responsible for the amount over your insurance limit. One way to face this problem is to negotiate an extended or guaranteed replacement cost coverage to provide some relief.
Inflations Effect on Personal Belonging Replacement:
From 2020 to 2021, the annual rate of inflation was at about 6.8%. What is important to note is that some goods have suffered inflation of twice that rate, and many home furnishing outfits have seen their needed wares increase by about 14% during the last year. Since home insurance kicks in and covers your belongings, you’ll want to be sure you have enough personal property coverage for their replacement costs if they become damaged or destroyed. It is imperative to make sure that you have replacement cost coverage on your homeowner’s policy after doing a thorough home inventory to figure out whether your current level of personal property coverage will be enough.
Closing in on Ideal Solutions for Climate Change
The insurance agency is now going to take a harder look at how climate change disasters have a direct impact on our customers’ well-being. The National Association of Insurance Commissioners and state regulators released a report on how insurers can better manage climate-related risks, continue to be affordable, and educate consumers on the importance of sustainability and long-term education about environmental issues.
If you feel that your home is at any type of risk for disasters, you can count on us at Alexander Insurance Agency to help re-evaluate your type of coverage right away. Flood Insurance is a necessary form of protection in many areas and is no longer a luxury that can be ignored as weather patterns continue to intensify. There are also many other helpful add-ons for protection such as wildfire insurance that can cover issues from kitchen fires, wildfires, and other accidents, and it’s smart to evaluate your policy to make sure you are adequately covered if an unforeseen disaster affects your living arrangement.
The Earth may not always refrain from being temperamental, but we are standing by to make sure that you won’t suffer losses to your property. We have years of experience when it comes to natural disasters and are standing by to assist with the choices that will keep you prepared and firmly rooted when severe weather issues rear their head.