Y ou may have noticed the price tags inching upward online, at grocery stores, gas stations, and now home and property insurance premiums. What gives? Like many things, the cost of home insurance is determined by many factors. Yes, rates can go up, but rate changes aren’t the only way premiums can increase. One common way that premiums are increasing now has to do with increased coverage limits, specifically Coverage A Dwelling limits. Building materials and labor costs are on the rise, which impacts both home values and repair costs. The increases in Texas have been heightened by the COVID-19 pandemic, the 2021 winter storms, and a very active hail season. Increased demand and a reduction in construction material supply due to stunted production and supply chain challenges are driving up home values, and many homeowners will likely find that their existing valuation is no longer accurate. Making additions or improvements to their home is another factor that increases Coverage A values.
Increasing premiums,
what gives?
It is important to review your current policy and coverages with your agent for appropriate valuation and applicable discounts. Germania’s new Extended Replacement Cost coverage will also provide you additional assurance that the amount of Coverage A will be enough to cover the actual cost to rebuild. We understand no one likes to hear that their insurance costs will go up, but it is not without good reason. Dealing with a total loss is devastating, and the last thing you will want to find out is that the coverage amount you purchased previously is no longer adequate to rebuild your home. At Germania, we value honesty and transparency, and we look to our agents to help us embody these attributes with you, their insureds. Thank you for choosing Germania Insurance as your insurance provider and don’t hesitate to reach out to your agent with any questions and concerns you may have.
4 | Germania Today
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