Inflation in the Property Insurance Industry [?]

[marindependent]

Guaranteed Replacement, at least on the PL side, is more or less non existant in California. I think I might still have one or two legacy policies out there that have it, but not many. 100% Ext Rebuild is about the best that you "may" and I mean "may" be able to get here.

 

[adjusterjack]

I use a comprehensive home Replacement Cost calculator called Cost to Build.

House Cost Estimator | Cost to Build a Home

I run the same parameters every renewal. Last June my RC was $196,000. This month my RC is $235,000.

Last June my Coverage A - Dwelling amount was $200,000. This month it was automatically kicked up to $208,000.

I have Guaranteed Replacement Cost on an HO-5 with Pekin (sorry, Pekin doesn't write in CA). If my house is a total loss, Coverage A is kicked up to the amount of the loss and I pay the difference in premium. Works for me since I don't have to keep chasing building costs (except out of curiousity). If nothing happens during a policy year I save a few bucks.

Economists debate whether the rapid climb in consumer prices, which rose at an annual rate of 5% in May, the fastest since August 2008, will prove as enduring as 50 years ago. Input prices for producers shot up by 6.2% in April, year on year (see chart 1). On June 9th Chinese beancounters reported that producer prices in the world's manufacturing powerhouse rose by 9% in May, year on year, the biggest jump in 13 years...."

Does that mean Social Security COLA will come in at 5% to 9%? Wait, while I go ask my leprechaun.

 

[Markthebroker]

Guaranteed Replacement, at least on the PL side, is more or less non existant in California. I think I might still have one or two legacy policies out there that have it, but not many. 100% Ext Rebuild is about the best that you "may" and I mean "may" be able to get here.

I've seen it on a Farmers commercial policy once. I am going back and forth with a client that claims he has it on his Farmers commercial blanket policy. I am waiting to see the updated policy, but on his old policy, guaranteed replacement cost shows as an option.