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Question Regarding Homeowners Insurance And Skyrocketing Building Materials Login/Join 
Get my pies
outta the oven!

Picture of PASig
posted
I was really shocked at this infographic today:





With $50,000 of lumber in 2015 you could build nearly 15 homes. Last year at this time you could build 10 homes. Right now you can build just TWO HOMES with $50,000 of lumber. Eek

This is making me worry about my homeowner's insurance. If my house burns down tomorrow, my current policy has a $330,000 rebuild allowance which in 2017 was more than adequate. Now? Probably not.

Should I be contacting my insurance guy and having a chat or just wait until this all calms down if it ever does?

My gut feeling is that this all crashes in 6-8 months or less.


 
Posts: 33608 | Location: Pennsylvania | Registered: November 12, 2007Reply With QuoteReport This Post
Knowing is Half the Battle
Picture of Scuba Steve Sig
posted Hide Post
I'm sure he'd be happy to sell you more insurance. It will also make your deductible higher if it is based on a percentage of your replacement value. In the extremely unlikely chance your house were to burn down today, that thing isn't going to be rebuilt within 6 months though. You'll be posting about it from a Holiday Inn Express for months while your claim is processed and you find a builder and then get the permits and then actually find the materials.

If it was me, I'd just don't burn candles until wood gets cheaper and either donate all your ammo or send it all downrange in one magnificent weekend range orgy. Put your grill and lawnmower 100 yrds from your house. Park your cars in the street. Unplug all appliances and just eat in restaurants or get takeout. You still have your electrical, HVAC and water heater to worry about, but there's calculated risks to be made.

Just kidding. I saw that same graphic and was amazed. People are scrounging in garages and snapping up used 2x4s at estate sales I've been to recently before anything else.
 
Posts: 2504 | Location: Iowa by way of Missouri | Registered: July 18, 2002Reply With QuoteReport This Post
quarter MOA visionary
Picture of smschulz
posted Hide Post
quote:
just wait until this all calms down if it ever does?


THAT is the scary part.
Todays Biden economy vs the Trump economy.
Even thought the stock market is still up for now but inflation has eaten up much of the benefits.
Look at employment with no one wanting to go back to work with all of the free-shit handouts along with the Government suppression of the economy using the Pandemic as a reason.
Times are scary now and confusing.
 
Posts: 22858 | Location: Houston, TX | Registered: June 11, 2006Reply With QuoteReport This Post
safe & sound
Picture of a1abdj
posted Hide Post
Hypothetical related question:

You experience a loss and your insurer determines and amount and issues a check. You have two years to complete the work.

You never cash the check, and material prices take off.

Is the insurer liable for the cost on the date of the loss, or at the time the claim check is accepted? Heck, in today's world there could be a 10% difference or more in a week's time.


________________________



www.zykansafe.com
 
Posts: 15696 | Location: St. Charles, MO, USA | Registered: September 22, 2003Reply With QuoteReport This Post
Member
Picture of rocket72
posted Hide Post
quote:
Originally posted by a1abdj:
Hypothetical related question:

You experience a loss and your insurer determines and amount and issues a check. You have two years to complete the work.

You never cash the check, and material prices take off.

Is the insurer liable for the cost on the date of the loss, or at the time the claim check is accepted? Heck, in today's world there could be a 10% difference or more in a week's time.


If you owned it outright that would be an interesting strategy. If there's a mortgagee clause, ie another party like a bank has interest, that wouldn't work because the mortgagee interest generally has offset to that money. The general rule for insurance in a mortgagee clause is the lesser of the loan amount vs cost of replacement. As the scales are moving, the owner could presumably end up with just a burnout lot.
 
Posts: 1536 | Registered: July 22, 2008Reply With QuoteReport This Post
Nosce te ipsum
Picture of Woodman
posted Hide Post
quote:
Originally posted by PASig: ... If my house burns down tomorrow ...
I'd be dancing a traditional Zaporozhian hopak, так?
 
Posts: 8759 | Registered: March 24, 2004Reply With QuoteReport This Post
Knows too little
about too much
Picture of rduckwor
posted Hide Post
Got my homeowners insurance bill yesterday. House value up about $45K, bill up about $350.00. Maybe some of them are paying attention.

RMD




TL Davis: “The Second Amendment is special, not because it protects guns, but because its violation signals a government with the intention to oppress its people…”
Remember: After the first one, the rest are free.
 
Posts: 20303 | Location: L.A. - Lower Alabama | Registered: April 06, 2008Reply With QuoteReport This Post
I Deal In Lead
Picture of Flash-LB
posted Hide Post
From everything I've read, there's no building material shortage, there's a transportation problem.

It'll go back to normal as soon as they stop the ridiculous amounts of "unemployment" insurance people are getting and they go back to work.
 
Posts: 10626 | Location: Gilbert Arizona | Registered: March 21, 2013Reply With QuoteReport This Post
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