A new study reveals that rebuilding costs have surged by 55% in Florida, leaving many homeowners potentially underinsured. Experts urge consumers to review their policies and ensure adequate coverage to rebuild after a disaster.
The surge in home replacement costs is raising alarm bells for Florida homeowners. A new study by the Insurance Information Institute (Triple-I) reveals that rebuilding a home has skyrocketed by 55% from 2019 to 2022—nearly four times the rate of inflation. This means that many homeowners in Florida may now face a hidden challenge - their existing insurance policies may not be sufficient to cover the full cost of rebuilding their homes after a disaster.
Experts attribute this massive increase to several factors, including supply chain disruptions, soaring material costs like lumber, and ongoing labor shortages. While replacement costs have moderated slightly since 2022, the damage is already done. Consumers are urged to review their policies regularly and ensure their dwelling coverage accurately reflects current rebuilding costs.The study's findings highlight the importance of understanding the difference between a home's market value and its replacement cost. Market value encompasses factors such as location, curb appeal, and demand, while replacement cost focuses solely on the expense of rebuilding from the ground up. Local insurance agent Matt Carlucci Jr. from Brightway Insurance recommends homeowners review their coverage every few years. He notes that rebuilding costs have significantly increased, with estimates now reaching $200 per square foot, compared to $125 a few years ago. Carlucci suggests homeowners who have owned their properties for over three years should check their dwelling coverage to ensure it aligns with current rebuilding costs. He also advises homeowners to explore ways to reduce their premiums, such as lowering contents coverage and raising deductibles
Home Insurance Replacement Costs Florida Disaster Preparedness Underinsurance
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Florida Winter Storm Could Raise Homeowners' Bills Amid Insurance CrisisA winter storm could worsen Florida and Louisiana's insurance crises, with snow damage challenging homeowners and insurers.
Read more »
Florida Homeowners Receive Welcome Insurance NewsThis year could bring positive changes to the state's property insurance market, which has faced limited availability and skyrocketing premiums.
Read more »
Cuyahoga County Homeowners Face 'Significantly Higher' Property Tax BillsCuyahoga County homeowners will see 'significantly higher' property tax bills for the first half of 2024, with many facing unexpected deductions from their bank accounts before receiving their bills. The increase comes after a recent re-appraisal saw a 49% rise in property values in Cleveland's Ohio City neighborhood.
Read more »
As climate risks mount, homeowners far beyond California face soaring insurance billsInsurance companies are canceling homeowner policies across the U.S. — even in regions that aren't considered climate hot spots.
Read more »
Utah Homeowners Face Steep Insurance Premium Increases After Yellow Lake FireSome Utah homeowners are experiencing significant increases in their home insurance premiums, primarily attributed to the financial aftermath of the Yellow Lake Fire. Residents along the Wasatch Back are seeing their premiums triple or more compared to last year, forcing many to grapple with the rising cost of coverage.
Read more »
Insurance Coverage Shock: As Wildfires Rage, Homeowners in California Face Financial HardshipsAs wildfires continue to devastate Southern California, many homeowners are discovering a shocking reality: their insurance policies may not be enough to rebuild or replace their homes. Nina Pineda from 7 On Your Side investigates the issue of insurance coverage shock, speaking with a public insurance adjuster about how homeowners can protect themselves and ensure they have adequate coverage in the event of a natural disaster.
Read more »