You may have heard about the high price of lumber this summer. Analysts aren’t exactly sure why it’s happening — maybe an increase in demand now that some work is starting to return to the level it was before the COVID-19 lockdowns. Perhaps it’s because of transportation issues, or taxes.
No matter what’s causing it, experts say to expect a delay before your home project gets going: a delay of 6 to 18 months, or even more, if there’s a total loss to a structure because of a storm or other situation. It may not last for long, as demand meets supply and everything eventually balances out.
The National Association of Home Builders estimate the price of a new single-family home is about $36,000 more because of the higher lumber cost. More value means more to protect, with a Hastings Mutual Homeowners policy. There’s also the related Coverage Plus, service line, and equipment breakdown coverage we offer.
What’s in a Homeowners policy? Coverage for the house, of course, and for related items like small vehicles (quads, boats). There are plenty of special discounts and credits available, too — just talk to your local independent insurance agent.
So maybe the best bet is to wait on construction now, while the price of lumber is extra-high, and instead take a look at your home insurance. Are you getting the best deal for the coverage you need? Have you taken a look at the cost of your policy lately? Hastings Mutual is here to help.
Are you in the building industry? What’s your prediction for the lumber market in the next few months? Let me know in the comments.
The Mutual Understanding blog and Hastings Mutual videos are made available for educational purposes only. The information referred to is not an official company statement, corporate policy, or offer of coverage. Refer to your insurance policy for specific coverage. There is no representation as to the accuracy or completeness of any information found by following any link on this site. Please contact your local independent insurance agent with further questions and for more details on any insurance policy-related information you read here.
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