|
2000–2005 Ohio and US Construction Costs
The cost of housing continues to rise, partly because of the market
price of a home and partly because of the increase in home construction
costs. Below are average percentage changes for construction
costs in Ohio and the US. As an example, a residential home built
in 2000 for $100,000 in Ohio would cost approximately $122,500
to
build in 2005 ($100,000 x 1.225, which is the factor for 22.5%).
Most insurance companies readily include an endorsement on homeowners
insurance policies known as “Inflation Guard Protection,”
which automatically adjusts each year the amount of insurance coverage
provided on a home in accordance with similar construction cost
factors.
Note for US Construction Costs: Study is predicated on the following
20 major pricing areas: Atlanta, Baltimore, Birmingham, Boston,
Chicago, Cincinnati, Cleveland, Dallas, Denver, Detroit, Kansas
City, Los Angeles, Minneapolis, New Orleans, New York City, Philadelphia,
Pittsburgh, St. Louis, San Francisco, and Seattle.
Source: Written permission was granted by the owner of the copyright,
Marshall & Swift/Boeckh, prior to its reproduction in its entirety
in this guide
©2005 Marshall & Swift/Boeckh, LLC and its Licensors
 |
The percentage of homes carrying too little
homeowners insurance dropped between 2001 and 2002, as did the
amount of homes that were underinsured. The percentage of US
homes that are undervalued fell to 64% in 2002 from 73% in 2001,
while the percentage by which those homes were undervalued improved
to 27% from 35%.
(Marshall & Swift/Boeckh.
MS/B, New Berlin WI)
|
|
