Mahoning Valley - Many homeowners are at risk of being underinsured due to high inflation and increased building costs.

 

"Since the pandemic began, we have seen construction costs climb well over 40 percent," said Karen Collins, assistant vice president of personal lines at APCIA

 

To go along with that pandemic and inflation, an uptick in natural disasters, as well as supply chain issues are all reasons why you as a homeowner...may be underinsured.

 

"We have found that only 30 percent of insured homeowners have recently purchased more insurance, or increased their coverage limits to compensate for rising building costs.", Collins added.

 

Policies such as added annual inflation adjustment coverage...automatically adjust policies to account for inflation.

 

Sky-rocketing building costs have a lot to do with the demand for building materials such as lumber, but even the smallest items

 

"A lot of people think of a faucet and that's all they're thinking about.  Not only does the faucet cost more, but the piping also costs more, the PVC, even the valves.", said John Virotsko, a partner with Sam Pitzulo Homes & Remodeling.

 

That's why insurance agents suggest you have the right amount and right types of coverage to account for inflation.

 

"I've had a few going back to previous numbers...home was insured for $180,000 in 2019, we're now looking at insuring that home for $300,000.", David Moliternto, owner of Moliterno Insurance.

 

Agencies also suggest that you keep an inventory of the items in your home in the event of a loss.  It's also recommended that you notify your insurance company of any upgrades or renovations so that your coverage reflects those changes.