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, the housing market is recovering, and material costs have risen. But while all states experienced an annual increase, that rate of growth is slowing.
Seventeen states had annual increases of less than 4 percent, with Hawaii coming in lowest at 2.9 percent and Washington, D.C., topping the charts at 6.9 percent. Forty-three states and the District of Columbia had reconstruction cost increases below 5 percent, almost a complete reversal from last quarter.
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 4.9 percent from July 2014 to July 2015. During the past 12 months, all ten Canadian provinces experienced reconstruction cost increases. The largest increase, of nearly 6.1 percent, was seen in Saskatchewan.
To learn more and see the complete reports, view the 360Value Overview of Property Reconstruction Cost Changes for third-quarter 2015.