Why Are Replacement Costs Increasing? (And How It Impacts Your Insurance)

You pay for insurance to protect what you’ve built — but lately, you may have noticed your home or farm policy premium creeping up. One big reason? Rising replacement costs.

At Goodman Insurance Solutions, we help Kansas homeowners and farmers understand why this is happening — and what you can do to keep your coverage working for you.

The Real Reasons Costs Are Climbing

1. Labor Costs Are RisingWages and benefits for skilled construction workers keep going up. When the people who rebuild your roof or replace your barn are paid more, that cost filters into your insurance rates.

2. Materials Are More ExpensiveLumber, steel, concrete — the backbone of any repair — have all seen price swings due to supply shortages and high demand. Even a short disruption can spike costs.

3. Skilled Labor Is Hard to FindA shortage of trained carpenters, roofers, and masons means you’re competing for the pros who can do the job right. Fewer workers = higher prices.

4. Building Codes & Regulations Are ChangingIf your city or county updates building codes, repairs must meet the new standards — often requiring stronger, safer, and more expensive materials.

5. Inflation Is Playing a RoleAcross the board, inflation impacts what it costs to replace just about anything — and construction is no exception.

6. Natural Disasters Drive DemandStorms, hail, and wildfires cause sudden surges in repair work, which pushes costs up even further.

What This Means for Your Policy

Replacement cost is what it would take to rebuild your home or structure today. As that number goes up, your coverage limit and premium may need to adjust. If it doesn’t, you could be left underinsured — which is the last thing you want when disaster strikes.

Our Promise to You

We monitor replacement cost trends in Southwest Kansas so your coverage stays current. You’ll know exactly what’s covered — and what it will take to rebuild — without guessing or worrying.

📞 Call us today at 620-531-0261 for a replacement cost review. We’ll make sure your policy matches today’s rebuild prices so you’re protected tomorrow.

Why are replacement costs increasing?