Coverage Types
Inflation Guard
Definition
A homeowners insurance endorsement that automatically increases the dwelling coverage limit by a specified percentage throughout the policy period to keep pace with rising construction costs. Typical increases range from 2% to 4% annually. This helps prevent the insured from becoming underinsured due to inflation in building materials and labor.
In Zach’s Words
“Construction costs go up every year — lumber, labor, materials, all of it. If your dwelling limit stays the same, you're slowly becoming underinsured without even realizing it. Inflation guard automatically bumps up your coverage limit (usually 2–4% per year) so your policy keeps pace. It's a small add-on that prevents a big problem: finding out after a total loss that your coverage is $100K short of what it actually costs to rebuild.”
— Zach Nadler, CIO