Recently released findings from an American Property Casualty Insurance Association (APCIA) survey found that a majority of insured homeowners have not ensured their insurance coverage addresses inflation and building costs.
“It is critical that homeowners make sure they have the right amount and right types of coverage during this period of significant inflation, but unfortunately, our survey shows that many individuals may not be properly prepared,” APCIA Assistant Vice President of Personal Lines Karen Collins said. “Our survey found that about two-thirds of homeowners may be without key additional coverages, such as annual inflation adjustment, extended replacement cost, and building code/ordinance coverage, that can better protect them in these challenging market conditions.”
The online survey was conducted domestically by The Harris Poll on behalf of APCIA from April 12 to April 14, 2022, polling 1,204 homeowners ages 18 and older – with 1,094 possessing a homeowners insurance policy.
Per the APCIA, the survey results showed that 63 percent of insured homeowners indicated they have not added or are not sure if they have added annual inflation adjustment coverage; 67 percent of insured homeowners revealed they have not added or are not sure if they have added extended replacement cost coverage to their policy; among insured homeowners who completed renovations or remodels during the COVID-19 pandemic, 40 percent have updated their home insurance to account for changes and 30 percent of insured homeowners have purchased more insurance or increased coverage limits to compensate for rising building costs.
“It is important to conduct an annual review of your insurance policy with your insurer or agent to help ensure you have enough coverage to repair or rebuild your home should disaster strike, but only 30 percent of insured homeowners updated their insurance policy less than a year ago,” Collins said.