As time goes by, the cost of rebuilding an insured dwelling increases along with inflation, often exceeding the initial purchase price of the home.  In addition to rebuilding costs,, the costs of replacing contents, and the cost of additional living expenses should you be displaced from your home due to damage are also continuously rising. In order to protect the homeowner from an underinsurance situation, inflation guard is often found in a home insurance policy that will add a percentage to the amount of coverage over time.



This percentage is based on the inflation rate for the previous year. The insurance company will likely automatically adjust your coverage amount upon renewal in order to reflect this. Your insurance premiums will also go up, however only based on the increased of coverage.



Inflation Protection applies to all lines of business except Mobile Homes at no additional charge. Upon renewal, policy limits will increase based on the current inflation rate for the year. If you have any questions about inflation protection and how it might apply to you, contact your local independent agent. They are ready to serve you and to help you understand how your policy works and the options that are available to you as one of our valued customers.