Rising construction costs coupled with widespread labor shortages have created a perfect storm for homeowners facing property losses. The gap between insurance coverage and actual rebuilding expenses continues to widen, putting families at significant financial risk..

Mary Roy, Senior Underwriting Team Leader at CRC Group, breaks down the complex factors driving this trend. The fundamental difference between new construction and reconstruction after a loss creates much of this disparity. Rebuilding involves unique challenges – from debris removal and working around existing structures to scheduling complications and protection of remaining assets. These projects lack the economies of scale found in new developments, where contractors purchase materials in bulk and efficiently schedule labor across multiple properties.

Don't wait until disaster strikes. Connect with your clients today to review their homeowner's policies and ensure they have adequate protection against today's rebuilding realities. Subscribe to the Placing You First Podcast for more specialist insights on navigating the complex world of insurance coverage.

Visit REDYIndex.com for critical pricing analysis and a snapshot of the marketplace.

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