WHY ARE MILLIONS OF HOMES UNDERINSURED AGAINST NATURAL DISASTERS AS CONSTRUCTION COSTS KEEP RISING? Despite the dangers attached to not getting a home insured against natural disasters, there are still up to millions of homes out there that do not have the luxury of this insurance. That is gradually becoming an issue of concern. These homes do not have any protection and so are vulnerable to extreme weather conditions that may lead to devastating damages, which include erosion, floods, wild-fire outbreaks, as well as hurricanes.
22
l
continue to be on the rise. That means that the expenses incurred while rebuilding or building a home continue to increase, which has been the case for the last three to four years. While all of these are happening, there is also the issue of unavailability or scarcity of labor. You can add new tariffs on materials to the list as well. This ever-growing list of factors plays a huge role in affecting the insurance status of THE POWER IS NOW MAGAZINE | APRIL 2021
123rf.com
T
hese conditions continue to cause havoc and expose homes to risks of suffering damages, especially uninsured and underinsured ones. According to a recent study, over half of a country’s homes are underinsured. It is worrying because not only does it affect homeowners or home dwellers, the country’s housing stock market is also going to take a hit. Another not-so-friendly statistic is that despite the underinsurance hiatus, construction costs
