Insurance coverage values impacted by higher replacement cost estimates
Construction costs rise more than expected
Insurance Services of New Mexico wants to prepare you for tomorrow, today.
As with many other things in today’s economy, construction costs related to labor and materials have risen more than expected. These increased costs are now being reflected in higher coverage values in homeowners and dwelling fire renewal offers.
Accordingly, we want our customers to be aware that some home policy renewals are seeing significant jumps because of the higher costs.
Insurance Services of New Mexico uses data to determine what it would cost at today’s prices to rebuild a home if it was a total loss. We update the data quarterly, and have seen the most recent prices increasing over and above historic levels.
What does this mean for you? Going forward, we suggest you talk with your Insurance Services of New Mexico agent to make sure your home has the most accurate coverage value available. Doing so will make sure rebuilding a home is in line with today’s construction market prices, should it ever be damaged or destroyed.