I am a dog person.

I have a 70 lb. Weimaraner named “Banksy” and she needs all the running room she can get. Last November, I got a quote for a wooden fence to enclose the yard. I wasn’t quite ready yet, so I waited. What a mistake that was.

Lumber prices, as well as other raw building materials, have skyrocketed in recent months. Lumber actually hit an all-time price record. It’s so valuable that there are increasing reports of wooden boards, beams, and planks being stolen from construction sites. Wood is the new copper.

So, how does this factor into your homeowners’ insurance coverage limits? Let’s say Florida is hit by a hurricane this year (we’ve already had our first tropical system in the Atlantic and it’s not even hurricane season). Tragically, your house is severely damaged by fallen trees. You opted for a policy with $200,000 in replacement coverage because it was a lower premium. This time last year, it would’ve cost $150,000 to repair the home. However, due to the lumber price increases of late, that cost is now $250,000, or $50,000 more than you have in coverage. This leaves you—the homeowner—with a gap in coverage that you must come out of pocket to cover.

How can you avoid this? Talk to your insurance agent or your insurance company about raising your replacement cost coverage limits on your Coverage A (dwelling) and Coverage B (other structures). The additional premium is likely trivial compared to the risk exposure in the event of a loss.

As always, I am happy to discuss this issue or any others you may have related to homeowner’s insurance. Contact Clint & Company, P.A. by text or call to (407) 212-7598 or by email at office@clintco.legal.