Xactware’s 2015 Property Report highlights increase in reconstruction costs in US
Rebuilding costs rise 3.7 percent, largely driven by new home construction
LEHI, Utah — The costs to rebuild a home rose in 2015, a trend that was driven by an increase in new home construction rather than storm-related reconstruction costs, according to Xactware’s recently released 2015 property report.
Reconstruction costs in the U.S. grew by nearly 3.7 percent, the report shows. New Hampshire led all states with the cost to rebuild rising 6.15 percent, followed by Nevada with an increase of 5.87 percent. Xactware is a Verisk Analytics (Nasdaq:VRSK) business.
The report also shows that there were more storms in 2015 than in 2014, but insurance claims were lower in 2015, and indication that storms were less sever.
“As a result, the increasing prices were driven by overall growth in the economy,” said said Greg Pyne, Xactware’s assistant vice president of Pricing Data Services. “Each year since the 2008 financial crisis the construction industry has continued to grow stronger. People are regaining confidence in the economy and that is reflected in increased building activity and homes sales.”
Xactware’s 2015 Property Report for the United States also shows that flooding and the resulting water damage was the most commonly reported type of loss, accounting for about 30 percent of the estimates processed by Xactware. Hail damage, which accounted for 23 percent of the estimates, was the second most commonly reported loss.
The 32-page document report includes 24 in-depth reports offering a high level summary of property insurance industry trends, building costs, and claims activity.
“The information in this report was gathered by examining data from millions of claims—with hundreds of millions of data points. It’s an outstanding example of what happens when a family of companies complement each other to better serve customers,” said Mike Fulton, Xactware’s president. “This broad yet detailed overview makes for fascinating reading that can inform decisions and give needed understanding and perspective.”