Wiregrass insurance agent explains why shortages are impacting premiums

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DOTHAN, Ala. (WDHN) —With the price of lumber and other construction materials at an all-time high, the price you pay for your home insurance might increase.

According to Rachel Davidson with Brightway Insurance, the cost to rebuild or make repairs to your home is climbing.

Davidson said the biggest thing to remember when looking at insurance is the dwelling coverage cost. She said that number will be the total replacement cost value.

Davidson wants to ensure the Wiregrass community, even though the increases seem bad upfront, they are a good thing and will keep everything covered in case of an emergency.

“When you think about the lumber price skyrocketing, that means to replace your home if you have a total loss, it’s going to be more expensive because the lumber is more expensive,” Davidson said. “We see that reflected in the value of these homes, the replacement cost has increased.”

Davidson tells WDHN it’s important for people to reach out to their agents and have them explain what their policy actually covers.

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