Inflation has caused consumers to see rising costs in all aspects of goods, gasoline, groceries, rent, and even homeowner’s policies, explains Citizen’s Insurance and Unland Insurance and Benefits Elite Agent and Account Manager Sara Vancil:
“With inflation, on the property side on let’s just say a homeowner’s; it’s got what is called an inflation guard built into it. It was a standard of 4% and now with all of the costs of materials for repairs increasing and the cost of labor increasing, insurance companies have had to increase that 4% to either 8% or 10% to make up for the cost of those goods. That is also to make sure you are not underinsured. So, of course, with those increases comes a cost in increase of your premium.”
According to the National Association of Home Builders, building material prices have surged 40.4% since January of 2020.
**Written by WMOI/WRAM Director of Communications Kelsey Crain**
