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Texas Department of Insurance
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July 8, 2021

Do construction costs affect my home insurance?

The cost of lumber tripled in the past year. We talked to the executive director of the Insurance Council of Texas about how construction costs factor into what you pay for homeowners insurance.

Insurance covers the cost to rebuild your home after a disaster. As construction costs increase, it’s important to adjust your policy limits. While you might be tempted to save money by getting less coverage when you renew your policy, that could mean higher out-of-pocket costs for you if your home is damaged or destroyed.

To look for the best deal on insurance, shop around with Texas has more than 160 homeowners insurance companies, so smart shoppers will take advantage of the competition. And check out discounts for bundling or smart home technology.

Watch this video to see what construction costs mean for your homeowners insurance and for tips to keep your insurance costs down.