Owning your own home can be a life-long dream for many people, but with ownership comes the responsibility to take care of it. A big problem many homeowners are dealing with right now is that fixing things in their homes is getting more expensive. And when repair costs increase, home insurance costs also increase in most cases.

Common House Damages:

Homes can get damaged in many ways:

• Roofs and Shingles protect us from rain, snow, and storms. But strong winds and hail can damage them. If we don’t fix them quickly, they can leak and cause more problems.
• Siding: It shields the outside of our homes. But strong winds, hail, and other things can damage it or blow it off from your house altogether.
• Decks: Things like falling trees or fires can damage decks, too.
• Whole Buildings: Sometimes, extreme events like fires or tornadoes can damage or even destroy entire buildings like houses or garages.

The Rising Costs of Repairs

The cost of repairing or replacing damage has seen a notable surge over the past few years. Here are a few reasons:

Over the past few years, the construction industry has witnessed a significant surge in the prices of building materials. For instance, in the early 2020s, the cost of lumber reached unprecedented levels, with prices almost tripling from what they were a couple of years prior. Similarly, steel prices surged by more than 30% within the same timeframe. This cost elevation has undeniably affected the affordability of repairing your damaged home.

Reasons Behind the Rising Cost of Materials

Several factors have contributed to the rising costs of building materials. Global supply chain disruptions, primarily triggered by the COVID-19 pandemic, played a pivotal role. As many countries went into lockdown, production at numerous factories slowed down or halted altogether. Ports, too, faced operational challenges, causing delays in the transportation of raw materials. The ramifications of these disruptions cascaded through the supply chain, leading to shortages and, consequently, rising prices. Additionally, demand has been surging post-lockdown as economic recovery and government stimulus packages in various countries fueled construction projects. This juxtaposition of reduced supply and increased demand has been a primary driver for the upswing in material prices.

Rising Labor Costs in Construction

Labor costs in the construction sector have also seen a marked rise in recent times. A primary reason for this is the skilled labor shortage in the industry. Many skilled workers, who either retired or left the field during economic downturns, have not been replaced at the same rate, leading to a demand-supply gap. With fewer trained professionals available, wages naturally trend upwards. Additionally, with the imposition of health and safety measures due to the pandemic, labor efficiency on construction sites sometimes decreased, meaning that projects took longer and required more person-hours. Moreover, the broader economic trends of increasing minimum wages and the need for more comprehensive benefits packages have also increased labor costs.

The Impact on Your Home Insurance

As the costs of home repairs rise, insurance claims related to these repairs also increase. This has a two-fold implication:

• Increased Premiums: Premiums will likely increase if insurance companies face more expensive claims due to pricier repairs.
• Policy Review: Homeowners might need to reassess their policies to ensure they are adequately covered for these rising repair costs.

Why Talk to Your Local Insurance Agent?

• Advice on Insurance: We can help you determine the best insurance for your home.
• Answers to Questions: Got questions about repairs or costs? We’re here to help.
• Help with Claims: If your home gets damaged, we can help make the claim process more manageable.

Final Thoughts

The fact that it’s more expensive to fix homes is something all homeowners should recognize. Knowing about these rising costs and how they may affect you is important. By planning and talking to your local insurance agent, you can make sure your home and your money are safe.

Ordinance or law coverage is a crucial aspect of insurance that individuals should consider to safeguard themselves from unexpected expenses related to building codes, regulations, and ordinances. In this article, we will explore the importance of ordinance or law coverage and its significance in protecting individuals.

Understanding Ordinance or Law Coverage

Ordinance or law coverage, also known as building ordinance coverage, is an insurance provision designed to protect individuals from the financial implications of complying with building codes and regulations. It applies to situations where repairs, alterations, or rebuilding become necessary due to changes in local laws, ordinances, or regulations.

Coverage Components

Ordinance or law coverage generally encompasses three key components:

• Demolition Coverage: This component provides financial protection for the cost of demolishing a damaged structure when required by law or ordinance.
• Increased Cost of Construction: This coverage addresses the additional expenses that may arise when repairing or rebuilding a structure to comply with current building codes or regulations. It helps cover the cost difference between the original materials and methods used versus the updated requirements.
• Loss of Value: In some cases, local ordinances may require a structure to be completely demolished if damage exceeds a certain percentage. Loss of value coverage provides compensation for the diminished value of a property that results from partial demolition or the inability to rebuild.

Importance of Ordinance or Law Coverage

Ordinance or law coverage is essential for individuals as it protects against unexpected expenses that may arise during property repairs or reconstruction. Without this coverage, individuals may face significant financial burdens, especially if they are required to meet updated building codes or demolish and rebuild their structures entirely.

Additionally, as building codes and regulations are subject to change over time, older structures may not meet current standards. If such structures suffer damage, individuals could be responsible for the cost of bringing them up to code without ordinance or law coverage.

Conclusion

Ordinance or law coverage provides individuals with valuable protection against the financial implications of complying with building codes and regulations. By including this coverage in their insurance policies, individuals can safeguard themselves from unexpected expenses and ensure their properties are adequately protected.

The time for the annual winter holidays is on our doorstep. With that comes a lot of good cheer, celebrations, and spending quality time with your loved ones. Unfortunately, according to the National Fire Protection Association, this time of the year also increases the risk of residential fires, injuries, and even deaths. Let’s take a closer look at why this is the case and what you can do to protect your family and friends.

Facts About The Increased Risk Of Fires During The Winter Holidays 

• Between 2015 to 2019, electrical lighting or distribution equipment played a role in nearly 50% of all residential fires involving Christmas trees. And close to 20% of Christmas tree fires were triggered by – believe it or not – decorative lights.
• The peak period for fires related to home cooking was on Thanksgiving. Christmas Day was not far behind, followed by Christmas Eve.
• Fire departments in the United States responded to an average of around 790 fires per year that involved home structures and started with decorations other than Christmas trees. On average, these fires resulted in the death of at least one person, while 26 people suffered burn wounds. In addition, direct property damage amounted to $13 million per year.
• Around 40% of fires involving residential Christmas trees began in a home’s living room.
• There was a surge in candle fires during the December/January period, with 22% of candle fires for the year taking place during this time of the year.
• Issues with the decorative lighting triggered close to 20% of fires involving Christmas trees. Candles were responsible for 8% of these fires.
• Throughout the year, around 35% of all fires involving home decorations were caused by candles. This surged to record highs during December when candles caused 45% of these fires.
• Cooking was the cause of 19% of all fires involving Christmas decorations.

Help Prevent a Fire at Your Home During The Winter Holiday Season

Below are some tips on making your winter holidays safer when decorating your home and entertaining guests.

Reduce The Risk of Fire When Decorating Your Home

• Be very careful when choosing holiday decorations. Make sure you choose ones that are, if not flame resistant, at least flame retardant.
• Ensure that, once a candle has been lit, it doesn’t come near decorations or anything else that can burn.
• Certain lights are suitable for outdoor but not for indoor use. Ask before you buy. Also, check the manufacturer’s recommendations when connecting more than one light strand.
• Immediately replace a string of lights if you notice potential fire hazards such as loose bulbs or broken or worn cords.
• Use clips rather than nails if you want to hang lights to ensure that the cords won’t be damaged.
• Keep Christmas decorations away from doors and windows.
• When choosing a Christmas tree, make sure it has fresh green needles.
• Place the tree at least 3 ft away from a heat source such as a radiator, fireplace, heat vents, lights, or candles.
• Add water to the tree stand every day.

Minimize The Risk of Fire When Entertaining Over The Holidays

• Make sure all the smoke alarms are working before your guests arrive.
• Never allow pets and children near lit candles.
• Store things like lighters and matches in a cabinet too high to reach for kids.
• Do not leave the kitchen when something is busy cooking on the stove.

Make This Holiday Season a Safe And Happy One 

We hope the above safety tips will go a long way to make your winter holidays safer – and ultimately happier. If you have any questions related to this topic (or anything else to do with home insurance), please feel free to call us. We are always standing by.