Supply chain disruptions and inflation have rocked the construction world – and left many property owners without the real estate insurance coverage they need if a disaster occurs.
Here are several real estate-related insurance options and how to apply them so that your property has the right coverage in the coming year.
Check Your Policy Limits
Before you hit “renew” on your real estate insurance policies, check the listed coverage limits.
Supply chain disruptions and inflation hit the construction trades hard. Average prices on construction materials and labor have risen faster than the rate of inflation, making even basic repairs unusually expensive. As a result, many real estate insurance policies don’t provide the coverage needed to restore a building after a major event – even if those coverage limits were adequate when the policy was purchased.
Reconsider Natural Disaster Risks
National Oceanic and Atmospheric Administration (NOAA) data on natural disasters shows a sharp increase in the number of catastrophic natural disasters in the past few years. Hurricanes, tornadoes, wildfires, flooding, and other natural disasters now threaten US properties in ways that they did not just a few decades ago.
When examining your real estate insurance policies for 2023, take some time to review natural disaster risks and rates in your area. Talk to an insurance professional about the need for any added coverage, such as flood insurance or added insurance for wildfire damage.
Real Estate: Are you Covered for 2023?
As inflation tightens household and business budgets, many people look at insurance policies as a way to cut costs. Reducing your real estate insurance coverage, however, may leave you with a much larger bill to pay – and no help in managing it.
Instead of cutting your coverage, talk to an experienced insurance broker. Your broker can help you choose the right types and amounts of coverage to meet your 2023 insurance needs without breaking your budget.
Looking for expert advice on your insurance needs?
Get in touch with our team at Odell Studner. We’ll help you find the coverage you need, so that you can enter the new year with confidence. Reach out to us today to learn more.