An American Property Casualty Insurance Association (APCIA) report maintains the combination of building supply shortages and supply chain concerns will compound challenges derived from storm and wildfire season.
The APCIA’s white paper – U.S. Property Insurance Market Struggles to Balance Supply & Demand – details how materials and labor needed to rebuild homes and businesses have been negatively impacted in the wake of losses.
Additionally, the analysis broaches COVID-19 impacts shifting demand to goods from services, focusing on inventories with manufacturing diminished.
“Severe weather conditions combined with supply shortages make it even more vitally important for homeowners and renters to be prepared for recovery challenges that could occur this year,” APCIA AVP Karen Collins said. “As construction costs increase and the potential for prolonged reconstruction timeframes exist, homeowners and renters should be talking with their insurers about hardening their homes, as well as exploring other strategies that may reduce damage.”
Collins said it is important for consumers to review policy coverages to ensure financial preparedness in the event of a disaster.
“There are simple steps that may help policyholders reduce the potential for property damage, and minimize the impact of supply cost increases, or building supply shortages, which could hamper rebuilding efforts following a hurricane or wildfire,” she said.