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Reconstruction cost increases continue to slow in the United States and Canada

Virtually all the labor and materials tracked for the 360Value® Overview of Property Reconstruction Cost Changes showed increases in both the United States and Canada for the period spanning October 2014 through October 2015. But the rise in costs continued to slow.

During the period, overall reconstruction costs grew 3.7 percent in the United States. This compares with an annual 4.2 percent rise for the period ending in July 2015.

For the United States, 34 states plus Washington, D.C., experienced an annual increase of less than 4 percent for the period ending October 2015. By contrast, 17 states experienced an annual increase of less than 4 percent for the period ending July 2015.

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Only five states experienced increases of more than 5 percent between October 2014 and October 2015. They were Idaho, Maine, North Dakota, Nevada, and New Hampshire. New Hampshire topped the nation at 6.2 percent. Hawaii experienced the lowest increase, at just 1.9 percent.

The trend was similar in Canada, where overall reconstruction costs at the national level grew 3.5 percent for the yearlong period ending October 2015. During that period, all ten Canadian provinces experienced reconstruction cost increases. The largest increase, of just over 4 percent, was seen in Saskatchewan.

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Michael Gannon

Michael Gannon, director of Marketing for Verisk insurance solutions, is responsible for strategic marketing in support of Verisk underwriting auto and property solutions. Before joining Verisk, he held similar positions at Verisk’s Xactware and AIR Worldwide.

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