Gasoline, aluminum, and even chicken wings are pricey and harder to get your hands on these days. Business closures and staff reductions were seen throughout 2020 and initiated a ripple effect where many supply chains were simply unable to produce what we expect—especially lumber.
Statistics Canada has reported that from March 2020 to March 2021, lumber prices shot up by an unbelievable 118.9 percent. The shutdowns of sawmills due to the pandemic led to low domestic stock prices, followed by high demand for lumber across Canada, which has made this price increase the highest ever reported by Statistics Canada.
If you’ve never thought about lumber prices before, it might be time to start.
Across Canada, more than 90 percent of homes are wood framing. This means that for most people, if an accident occurs or there is damage to a home, repairs or replacement costs are at an all-time high. Depending on the insurance coverage you’ve chosen, the increased price of lumber could leave you paying out of pocket.
Wondering if this applies to you?
Here are two common policy options:
- Guaranteed Replacement Cost (GRC). With this option, your policy covers you for everything necessary to rebuild your insured property.
- Co-insurance. This applies when GRC isn’t an option and means insuring for 100 percent of the replacement or value in cash in case of inflation.
At Nuera, all of our on-platform home policies have GRC. If your policy doesn’t have GRC, the increases in lumber cost may motivate you to insure your property to 100 percent coverage to avoid unexpected costs during a crisis.
Either way, it’s worth looking into.
Have questions about your policy limits or wondering if it’s time to re-evaluate your coverage? That’s what we’re here for; we make it simple to find a policy that recognizes the worth of your property and protects it accordingly.