How have property values and inflation in the cost of construction impacted the property insurance market? Inflation has been a major story for the whole of 2022 so far; however, we saw significant rises in costs throughout 2021, particularly in property values and the cost of construction.
Property values have increased in a number of ways. The steady high demand for residential property combined with a still limited supply has created continued upward pressure on home prices.
But what we’re going to address today is how the increased costs of both materials and labor in the construction industry is affecting property insurance. This affects you if you own any type of real property.