Verisk Insurance Solutions released its 360Value® Quarterly Cost Update on reconstruction costs for the third quarter of 2017. The report offers an overview of current reconstruction cost trends at the national and state/provincial level for the United States and Canada.
At the U.S. national level, reconstruction costs continue to edge upward. Since July 2016, overall reconstruction costs increased 3.9 percent in the United States, a 0.9 percent higher margin than from April 2016 to April 2017. Since April 2017, reconstruction costs increased 1.5 percent in the United States, a 0.5 percent higher margin than from first to second quarter 2017. That marks an ongoing trend of increases over the last year.
Overall from July 2016 to July 2017, rate changes in the states increased for each state over the last quarter. Eighteen states showed increases of 4 percent or higher, and seven states had increases greater than 5 percent: Colorado, Idaho, Missouri, Nevada, Utah, Washington, and Wisconsin. Massachusetts, New Hampshire, and Vermont were the slowest-growing states in terms of overall cost increases, at less than 3 percent. View the full report and map for the United States.
Canadian provinces see increases
In Canada, at the national level, reconstruction costs increased 3.7 percent from July 2016 to July 2017. That’s the highest increase since the third quarter of 2015, continuing a reversal of the previous pattern of a slow rate of increase. All ten provinces experienced reconstruction cost increases.
During the second quarter of 2017, reconstruction costs rose 1.8 percent. View the full report and map for Canada.
About 360Value Quarterly Cost Updates
360Value Quarterly Cost Updates provide current, localized, and detailed cost data on reconstruction labor and building materials—information that’s essential for creating reliable, component-based replacement cost estimates. The reports feature detailed graphics that make the information easy to understand and use. You get information on six key types of materials and six top labor categories.
Trish Hopkinson is product director, 360Value, for Verisk Insurance Solutions. You can reach Trish at email@example.com.