As we approach the end of 2012, forecasters are predicting the end of the housing market decline.  With this comes a slow recovery of the residential construction industry accompanied by the rising cost of home building.  Early indicators, such as increases in the cost of gasoline and diesel, gypsum board and soft lumber, support these predictions.

New homes are being built for less than what it would have cost three – four years ago.  Contractors are working with smaller profit margins and using less costly materials, such as plastic instead of copper or synthetic materials that do not use petroleum.  However, the coverage that we offer our customers and clients’ ensures that their homes will be rebuilt with materials of equivalent quality as those that were used when it was originally built.

We suspect that remodeling activity in the US is poised to accelerate by the end of this year and into 2013.  This can be attributed to improvements made before putting up a residence for sale, as well as renovations at homes where owners chose to stay due to the depressed real estate market.  Since most homeowners do not report renovations to their insurance advisors it is recommended that you call your broker or insurance advisor and update them regarding any renovations to insure proper coverage.

From your friends at Chartis & The MVR Insurance Agency