The latest reports of the 360Value® Overview of Property Reconstruction Cost Changes show reconstruction costs are higher in the United States and Canada compared with the same time last year. In the United States, 44 states and the District of Columbia had reconstruction cost increases of more than 5 percent.
That’s the largest number of states with an increase of more than 5 percent since October 2006, when residential construction experienced tremendous growth and 47 states plus Washington, D.C., saw increases greater than 5 percent.
North Dakota continued to top the charts at more than 9.5 percent as construction costs soared because of growth from the state’s oil boom.
Reconstruction cost data is used to estimate replacement costs that typically serve as the basis for determining policy limits for property insurance policies.
In Canada, overall reconstruction costs at the national level increased 5.9 percent from April 2014 to April 2015. During the past 12 months, all ten Canadian provinces experienced reconstruction cost increases. The largest increase, of nearly 10 percent, was seen in Saskatchewan.
To learn more and see the complete reports, view the 360Value Overview of Property Reconstruction Cost Changes for second-quarter 2015 at www.verisk.com/360Value-updates.