Inflation affects more than just grocery bills and gas prices. It’s also reshaping the cost of rebuilding homes, buying cars, and how you run your business, making it more important than ever to review your insurance policies.
Whether you’re a homeowner, a business owner, or both, the policy limits that felt right a few years ago may not offer enough protection today.
If you haven’t updated your home or auto insurance in a few years, now is the time to take a closer look. Inflation has driven up the cost of nearly everything, from building materials and labor to car parts and household goods. That means the policy limits that once felt sufficient may no longer offer the protection you need.
Homeowners insurance - The cost to rebuild your home has likely gone up due to higher prices for lumber, roofing, plumbing, and other materials. If your policy is still based on your home’s value from several years ago, it may not cover the full cost of repairs or a total rebuild after a major loss.
Auto insurance - Supply chain issues and rising repair costs have made car parts more expensive and harder to find. In some cases, the cost to replace a vehicle exceeds what your current policy will pay.
Personal property coverage - Items like furniture, appliances, clothing, and electronics have all increased in price. If your contents coverage hasn’t been updated, you could end up paying more out-of-pocket than expected after a loss.
Ohio business insurance must-haves and should-haves for protection
Many people assume they’re covered until they file a claim and discover otherwise. That’s why it’s important to revisit your policy limits and make sure they reflect current replacement costs, not outdated estimates.
Inflation has driven up the cost of doing business across the board, and insurance coverage needs to reflect that reality. Many business owners are discovering that their current policies no longer cover the full cost of repairs, replacements, or downtime in 2025. If your coverage hasn’t been updated in the last few years, there’s a chance your policy limits may fall short when you need them most.
Equipment and property replacement - Rising prices for materials, labor, and equipment mean that insuring property at older values may leave your business under protected. For instance, kitchen or manufacturing equipment may cost 30–40% more to replace than it did five years ago.
Liability claims - The cost of resolving employee or third-party liability claims, including legal fees, settlements, and healthcare costs, has increased, especially in industries like construction, food service, and retail.
Business interruption coverage - If you’re forced to temporarily close your doors, your existing coverage may not reflect today’s higher operational costs or extended repair timelines. Inflation and supply chain delays can drag out recovery efforts, making it more expensive to get back on track.
Contractor and vendor costs - Many businesses rely on third-party vendors or subcontractors to operate. Their rising rates can impact your bottom line, and if they experience delays or disruptions, you may also be financially affected.
How does homeowners insurance work when there’s a fire?
Inflation may be beyond your control, but being prepared for it doesn’t have to be. If it’s been more than a year since you last reviewed your policies, now is the time to check in. At Roehr Insurance, we’re here to help you make sure your coverage reflects what it would take to recover today, not five years ago.
