As wildfire season approaches, homeowners in fire-prone regions are discovering that their existing policies may not cover the full cost of rebuilding. Replacement cost estimates have jumped significantly due to elevated lumber and labor prices.
Insurance regulators in several western states are urging carriers to offer extended replacement cost endorsements that pay up to 150 percent of the dwelling limit. Policyholders who fail to update their coverage risk devastating out-of-pocket expenses.
Experts advise scheduling a home inventory review and obtaining updated construction cost estimates before peak fire season begins.
