Construction Costs Have Gone Up
Construction costs are escalating due to natural disasters like Hurricane Katrina and Rita. They are also rising faster than the general rate of inflation because of a strong demand for building materials. Ken Simonson, chief economist of the Associated General Contractors of America estimates construction costs will jump 10% through 2006.
The increased costs of construction will more than likely impact the marketplace and property-related pricing in 2006 and beyond. For this reason, it is vital that your commercial and personal property is adequately insured.
A property adequately insured today could be 20% underinsured in just 2 years. And, replacement cost coverage commonly triggers a co-insurance penalty when the insurance-to-value ratio falls below 80%.
Maintaining adequate property insurance requires vigilance and regular review by policyholders and agents alike. To assist with your insurance-to-value analysis, Stonebraker McQuary Insurance recommends a review of property values and insurance adequacy be accomplished routinely and systematically. As always, your team at Stonebraker McQuary is here to help you. Call us today to review your policy.
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Crop Insurance is the largest single source of financial protection to farmers
There are two kinds of crop insurance: crop-hail, which is provided by the private sector, and Multi Peril, an all-risk coverage underwritten by the private sector and the federal government and serviced mostly by the private sector. Crop-hail insures against loss of the value of a crop as a result of damage by hail. Multi Peril insurance covers loss of crop value as a result of all types of natural disasters, including drought, excessive moisture and unusually hot weather.
There have been sweeping changes in the federal Multi Peril crop insurance program in recent years. Up to 1995, only about one third of farmers bought federal Multi Peril crop insurance because, in the event of a disaster, they could generally rely on Congress to bail them out with disaster assistance and emergency loans. With the passage of reforms in 1995, Congress made it harder to justify legislation granting disaster. It also took other steps to encourage farmers to buy insurance against loss of income due to natural disasters, requiring new types of products, such as revenue protection, to make crop insurance more attractive and subsidizing a portion of the basic traditional coverage that protects against loss of yield.
Call or visit a friendly Stonebraker McQuary agent to find out more or get a quote.