How inflation is affecting homeowners insurance premiums
As part of our promise to protect your most valuable assets, you may see increases to your homeowners insurance premium. We know no one wants to see their premiums go up, but these changes ensure we can deliver on our commitment to be there for you when you need us most.
How inflation is affecting homeowners insurance premiums
As part of our promise to protect your most valuable assets, you may see increases to your homeowners insurance premium. We know no one wants to see their premiums go up, but these changes ensure we can deliver on our commitment to be there for you when you need us most.
Understanding and planning for inflation
We hope the following information helps you understand the complex factors of inflation. The frequently asked questions section will provide you with answers to questions you and other homeowners are asking. We’ve also included a resource section where you can find reputable information about what’s happening and how it’s impacting your home insurance.
SageSure Inflation Factsheet
Read the one page summary on how inflation is impacting your home coverage. This factsheet highlights relevant market data, consumer insights, and confirms the SageSure promise: ensuring you are covered.
Market Insights
CoreLogic Quarterly Construction Insights – Q3
Property expert assessment of construction costs throughout the U.S
Federal Reserve analysis for construction salaries
FRED: Employment Cost Index: Wages and Salaries: Private Industry Workers: Construction
Inflation data from the Bureau of Labor Statistics
Producer Price Index PPI by the Bureau of Labor Statistics
Frequently Asked Questions
What is inflation?
According to the U.S. Federal Reserve Bank of Cleveland, “there is inflation when the prices of many of the things we buy rise at the same time and then continue to rise. Explained another way, inflation is ongoing increases in the general price level for goods and services in an economy over time.”
How does inflation impact Homeowners insurance?
When the U.S. economy experiences significant inflation, the cost of construction, materials (such as lumber or metal), and labor increase. Materials and labor impact how much it costs to re-build your home in the event of a total loss. While SageSure hopes that no one ever experiences a total loss, it’s important to make sure that your policy has enough coverage for the increased costs of re-building your home in the event of a loss.
What has changed recently?
You may have noticed an increase in the cost of groceries, going out to eat, travel, etc. over the last year. Building materials and construction labor costs have experienced even higher increases, and since these costs have increased approximately 20% across the country over the last year, the coverage on your policy is being increased to cover the increased costs of re-building your home in case you experience a total loss.
Why is the replacement cost potentially different from my homes market value?
The replacement cost of a home considers the materials and labor cost of re-building your home in the event of a loss. Your market value is the price that you could sell your home to a potential buyer and includes the value of the land, the real estate market in your area, and other relevant factors.
Now I have more questions about the replacement cost of my home and my coverage, what should I do?
The insurance agency you originally purchased your policy from is a valuable resource to help you understand your policy and what coverages you have in place to make sure you are protected. Your enrollment package and policy documents from SageSure have the contact information for your insurance agency/representative. If you need help locating the contact information, you can always reach SageSure at (800) 481-0661.
What else I can do to make sure my home always has the right coverage?
It is always a good idea to keep your agency (where you purchased your policy) up to date on any changes or improvements you made to your home at least once a year, so that you always have the right coverage limit. Your agency can review any changes with you and adjust coverage limits if necessary.
Have additional questions? We’re here to help.
If you have questions about your policy or any other insurance related inquiries, contact your insurance agency/representative, or call our customer care line at (800) 481-0661. We want to help you understand your policy and feel confident that your home is protected.