Page 33 - AAA Magazine – AAA Ohio Auto Club – May 2022

Expect Higher-Than-Normal Home and Auto Premiums
Historic inflation and other contributing trends have been driving up costs related to the repair and replacement of homes and vehicles – and these higher costs are forcing carriers to increase home and auto premiums.
Higher building materials costs and a skilled labor shortage are a reality.
If you’ve shopped at any home improvement store lately, you’ve probably noticed that the price tags on building materials have risen dramatically. According to the National Association of Home Builders, in the first year of the pandemic, lumber prices alone jumped 42%. Steel mill products rose a staggering 81% in the first three quarters of 2021. Higher material costs naturally lead to more expensive bids on home repairs and
new construction.
To make matters worse, the home-building industry is facing a shortfall of at least 200,000 skilled trade workers, which is driving up construction-related labor
$1,000 value
costs. About 60% of surveyed builders report a skilled labor shortage. Combined with the higher cost of construction materials, this has been making home claims much more expensive for carriers.
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