Here’s my full conversation with insurance expert Jason White.
I’m sure most of you know that the real estate market has been crazy over the last year. Prices are rising at an incredible rate. We saw an 18% increase in the average home price from November 2020 to November 2021.
There are a lot of other industries that are affected by this, and one of them is insurance. That’s why I’ve brought my friend Jason White from North Carolina Farm Bureau Insurance to discuss a few things you need to know in this market.
The cost of homes has skyrocketed, but the cost of insurance has gone up along with it. If you have not looked at your policy recently, you might be underinsured. The value of building materials of homes has increased. If you have a total loss, you may not be able to get exactly what you need because your dwelling coverage doesn’t cover that new amount. Jason was working with a client in the Wake County area who was adequately insured when they purchased their property in 2010. Because of the increased cost of building materials and higher home prices, we increased their coverage by almost $100,000 just to make sure they were covered in the event of a total loss.
Even if you’ve done everything you’re supposed to do, a disaster can put you in a terrible position if you don’t have the right coverage. Building materials have increased nearly 30% to 60% in price from 2020, which is incredible.
Here in the Triangle, it’s going to cost around $200 per square foot to rebuild your home. Jason has talked to industry veterans who have never seen costs like this. We’re looking at having high prices with building materials through 2023.
At North Carolina Farm Bureau Insurance, Jason and his team are helping clients review their insurance policies right here in our state. They try to take things on a case-by-case basis, and they give their clients 100% replacement cost for their standard homeowners insurance policy.
If you need to review your insurance, I recommend reaching out to jason.white@ncfbins.com. If you have any real estate-related questions for me, don’t hesitate to reach out via phone or email today. I look forward to hearing from you soon.
