Client-focused insurance and financial services provider UNICO (unicogroup.com) offers a consultative and relational approach to provide customized solutions for clients all around the nation. Striving to create connections that are personal, compassionate, and fun are what makes UNICO a trusted provider of various financial services.
Being a client-focused company, UNICO is doing their part to inform their clients of the surge in household construction costs that have been confirmed by the National Association of Home Builders. The rise is directly tied to soaring building material expenses, with current lumber costs up 340% from 2020 and an additional 67% since the beginning of 2021. The reason for the increased expenses stems from both Covid-19 and the presence of historically low interest rates which have contributed to a rise in home purchases and renovation projects. The increased demand has been met with supply shortages throughout the construction industry, directly causing building material prices to soar.
This surge in costs could potentially pose consequences for homeowners across the nation. Increased building material and construction prices could lead to higher homeowners insurance claim expenses. Homeowners could discover that their existing policy no longer offers adequate protection, leaving them financially vulnerable in the event of a loss. Insurance carriers may also increase policyholder’s premium costs to account for the risk of elevated claim expenses.
With these ongoing concerns for homeowners, it’s important to respond accordingly.
Homeowners should consider taking the following measures:
Review your policy
Be sure to fully understand your homeowners insurance policy and take note of whether you have replacement cost coverage or actual cash value coverage. Ensure your policy provides a correct replacement cost or overall value for your home.
Consider Coverage Adjustments
Consult a trusted insurance professional to help you determine whether you need to adjust your policy to have sufficient coverage in the event of a loss. This may entail changing your policy’s valuation method, increasing your current limits, obtaining specialized coverage, or implementing a policy endorsement.
Communicate with your insurance carrier or advisor
Lastly, make sure to inform your homeowners insurance carrier whenever you conduct renovations or implement other improvements in your home Update your policy as needed.
UNICO takes pride in expertise and knows that trust can’t be assumed, it has to be earned. Building relationships with you, your family, your business, their employees, and the communities they serve are what UNICO values the most. They take pride in a vibrant work culture that is contributed by each of their team members living out a shared set of core values.