Your Insurance: Managing homeowner’s insurance costs during increased inflation

Let Bill Rowlen safely and securely guide you through the insurance marketplace.

By Bill Rowlen
President, Flury-Hinderks Insurance

By now, most everyone has heard about the cost of lumber and building materials. Did you also know the building industry is experiencing a severe labor shortage? Some statistics from the US Bureau of Labor Statistics show the industry is down by approximately 200,000 skilled trade workers. These factors combined are causing overall building costs to increase dramatically. As building costs increase, the cost to repair or replace a home in the event of a claim also rises.

One of the ways insurance companies respond to building cost pressure is by increasing the amount of replacement cost you carry on your homeowner’s insurance. Replacement cost is the large amount you see on your insurance renewal documentation and is the estimate of what it would cost to rebuild your home in a catastrophe such as a fire or tornado. In years past, insurance companies may have automatically added 2% or 3% per year to this number to keep up with construction costs. That has changed dramatically and we are seeing double-digit replacement cost increases from most insurance companies in the midwest.

An increase in the estimate to replace your home isn’t necessarily a bad thing. It just means insurance companies are doing what they can to make sure your home is not underinsured from year to year. Having enough replacement cost on your insurance policy means you’ll have enough coverage for when you may need it the most.

So, what can you do to keep your insurance costs down without sacrificing coverage?

The number one thing most homeowners can do is work with an experienced Independent Insurance Agency to conduct a thorough insurance review. An Independent Agency that represents multiple companies can make sure you are receiving the best value for the money you spend on insurance. They will compare rates and options with multiple carriers on your behalf and review everything with you to give you the insurance options you are looking for.

Your independent agent can help with the following:

  • Offer choices and options to save money on your homeowner’s insurance
  • Apply the discounts you qualify for and recommend discounts you may not be aware of
  • Bundle your homeowner’s policy with your auto coverage to maximize savings
  • Review deductible options on your homeowner’s insurance

Working with families as their trusted insurance advisor is what we do every day. Connect with us for an insurance review to see how we can help you manage your insurance costs too.

Flury-Hinderks Insurance is an Independent Insurance Agency located in Overland Park and is a trusted advisor for thousands of families in Johnson County. Contact Flury-Hinderks Insurance today for a comprehensive insurance review.