Homeowners urged to check if insurance policy covers full cost of rebuild as construction costs skyrocket

PHOTO: Homeowners are being urged to check their insurance policy as the actual cost of repair can be far higher than the insurance payout. Credits: Image – Getty Images; Video – Newshub

Homeowners are being urged to check their insurance policy, to ensure it covers the actual cost of building and repair work.

Construction costs have skyrocketed, with the price of steel and timber up 15 percent – something insurance hasn’t caught up with.

A clothing dryer caused one home to go up in flames last month. Its owner Ruby Debs Oakley is devastated.

“The whole back of the house is gone. The front of the house, really bad smoke and water damage,” Oakley says.

Her home insurance payout was $400,000. But the actual cost of repairing it is much higher.

“To fix it they got the quote of $520k –  another $100k,” Oakley says.

Her home insurance payout was $400,000. But the actual cost of repairing it is much higher.

“To fix it they got the quote of $520k –  another $100k,” Oakley says.

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