Insurance and Inflation: How to Make Sure You’re Still Properly Covered As Prices Rise

When inflation drives up the price of materials, labor, and services, the amount it would take to repair your home after a storm or replace your vehicle after an accident may also rise. If your insurance coverage limits haven’t been updated recently, you could find yourself underinsured, meaning your policy may not fully cover today’s higher costs.

For example, if your homeowners insurance was set based on construction costs from several years ago, it may not be enough to rebuild your home at current prices. The same goes for auto insurance and personal property coverage.

Steps to Stay Properly Covered

To help avoid coverage gaps caused by inflation, consider these steps:

• Review your policies annually. Check your coverage limits for your home, car, and personal belongings to ensure they reflect current replacement costs.
• Ask about inflation protection. Some policies include inflation guard endorsements, which automatically adjust your coverage to keep pace with rising costs.
• Update your policy after major purchases or renovations. If you’ve remodeled your home or bought valuable items, let us know so we can help update your coverage.
• Consult with an insurance broker. They can answer your questions and help you understand how inflation may affect your specific situation.

Why Regular Coverage Reviews Matter in Arizona

Arizona’s unique housing market and weather risks make it especially important to keep your insurance up to date. Whether you’re a homeowner, driver, or renter, regular policy reviews can help ensure you’re not left with unexpected expenses if you need to file a claim.

If you’re unsure whether your current insurance is keeping up with inflation, our team at Best Buy Auto & Home Insurance Agency Inc is ready to help. Contact us today for a personalized coverage review and peace of mind as prices continue to change.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.