I’m sure you have seen the devastating destruction and heartache that the recent hurricanes have caused to the United States and Puerto Rico. While those of us in the north were not physically affected by the hurricanes, the ripple effect of rebuilding will touch us directly.
Houston alone will need to renovate or rebuild 200,000 plus homes, in additional to local businesses that are in desperate need of repair. Most homes and commercial businesses in Puerto Rico are in dire need of power, repair, and rebuilding. The Florida Keys were impacted from one end to the other. The number of damaged structures is on pace to match the annual output for new homes, and to increase by more than 10% the already planned renovations.
We feel for those who have lost loved ones, belongings, entire homes and businesses. No words can comfort those who have gone through this, and our hearts and prayers go out to them. It’s been amazing to watch the help of first responders, neighborhood volunteers, and those that put their own lives at risk to help others. We are inspired by you.
As rebuilding starts and lives begin to go back to fall back into routine, those that were not directly affected by the storm will start to slowly feel the changes that will take place in demand and pricing. From construction materials, electric, even those to do the physical work, prices will change, and rebuilding businesses will be spread thin. As claim adjusters cut their checks and pay out for damages, the effects of the devastation will slowly creep into the insurance rates of those much further away from the center of these terrible storms.
We wanted to keep you informed of future changes and price increases which may not be felt until about 6-18 months after these devastating events. It might be easier to understand why they are happening when you know the reasons behind the changes.