One of the incidental effects of the Covid-19 pandemic could be the protection provided by homeowner insurance.
You know that the two consequences of a pandemic are increased housing demand and a shortage of many building parts and fixtures. There is also a shortage of skilled labor to build a house.
As a result, the cost of building a house has increased. There was a dramatic increase in some areas. This means that the cost of rebuilding or significantly repairing a home due to casualties has probably increased.
You need to check the insurance policy coverage limits. Most policies say that if a house is destroyed, you will pay to rebuild it. However, there is usually a maximum amount that an insurance company will pay.
Many insurance companies automatically adjust the maximum amount each year when their insurance policy is renewed. Others don’t.
In either case, you need to check the policy limits and see how much the rebuilding cost has increased in your area. Determine how much it will cost to build your home in today’s market.
You may find that the maximum coverage limit of the policy is 20% or more lower than the cost of completely rebuilding a home if it is destroyed by a fire or other catastrophe. Adjusting the policy limits will increase your insurance premiums a bit. But it’s cheaper than having to reach into your pocket to pay some of the cost of rebuilding a home.