Uncover the Impact of Inflation on Your Home Insurance

Inflation isn't just about rising prices at the grocery store or the gas pump. It can also have a big impact on your homeowner's insurance. When costs for home construction, labor, and materials go up, it can leave homeowners underinsured if disaster strikes. Without enough coverage, you could end up footing the bill for rebuilding your home. That's not a situation anyone wants to be in!

Ensuring Adequate Coverage with Replacement Cost and Dwelling Coverage

To make sure you're fully protected, insurance companies use replacement cost calculators to determine your dwelling coverage. This coverage represents the amount the insurance will pay to rebuild your home in case of a claim, not the purchase price of your home. By calculating the cost of construction per square foot, you can determine if you have enough coverage to rebuild your home. It's essential to know the difference between replacement cost and actual cash value coverage so you can ensure you have the right protection in place.

Extra Protection Options: Extended Replacement Cost and Guaranteed Replacement Cost Coverage

If you want added peace of mind during times of inflation or uncertainties, consider adding extended replacement cost coverage to your policy. This coverage kicks in if your dwelling coverage limit isn't enough to cover the full rebuild and replacement costs. For even more assurance, guaranteed replacement cost coverage ensures that your home will be fully covered in case of a claim, regardless of economic conditions or disasters.

Don't Forget about Inflation Guard

Inflation guard is another helpful option to safeguard your coverage against inflationary impacts. It helps keep your coverage in line with the fluctuating value of the US dollar, ensuring you're not caught underinsured when costs rise.

Take Control of Your Insurance Coverage Today

In a world where inflation can affect everything, protecting your home with adequate insurance coverage is crucial. Whether it's homeowner's insurance or renter's insurance, being prepared for the unexpected brings peace of mind.

It really is that simple. We’re Covered. And so are you. Contact one of our Covered Insurance Advisors today to ensure your home is fully protected, answer your questions, review your policy, and make any necessary adjustments. Remember, with Covered, you're in safe hands.