The news outlets have been covering the various different sectors which President Trump’s recent tariffs on steel and aluminum have impacted. Everything from auto manufacturing, small business manufacturing, and even the military. But will President Trump’s tariffs impact the property insurance industry? The most direct way the tariffs will impact the property insurance industry will be the delay in applicable pricing standards to be applied to property insurance claims.
Imagine you file a claim for roof damage as a result of a hurricane or a wind event. Now your insurance company will assign a field adjustor who will come out to your property and evaluate the damages. Assuming they determine it is a covered loss, they will then determine how much it will cost to replace the damaged portions of your roof or whether total replacement is necessary. In either event, the adjustor will be using certain predetermined pricing guidelines found in estimating software such as Xactimate to determine the cost the insurance company will offer to pay you for your covered loss. Unfortunately, these predetermined pricing guidelines are not factoring in the actual real cost which a roofing contractor would have to charge a consumer to perform the recommended repairs or roof replacement. The costs to the roofing contractor have been rapidly increasing on aluminum, lumber and plywood, as well as steel products as a direct result of the tariffs. Additionally, however not necessarily related to the recent Trump tariffs, asphalt, felts, and coatings have jumped in price as well. These cost increases are initially incurred by roofing contractors and will therefore be passed along to the consumer.
The increase in the cost of construction materials creates a scenario where the insurance companies’ estimating programs provide costs at a far smaller value than what it actually costs a contractor to perform the recommended work. This creates a situation of an underpaid insurance claim and is a primary factor in an insurance policy holder’s decision to seek help from a property damage attorney. All too often, the insurance companies will draw a line in the sand based upon their own estimate, not realizing or not caring about the fact that the real cost to replace damaged property far exceeds their paltry estimates.
President Trump’s Tariffs May Very Well Impact Insurance Claims
The reality of an insurance company underpaying an insurance claim is all too real to Florida homeowners. The Trump tariffs only increase the likelihood of this insurance company practice occurring; homeowners and business owners must remain vigilant in their efforts to get fully compensated for their insurance claim. If you have experienced a denied, underpaid, or delayed property insurance claim, do not delay in contacting St. Petersburg Property Damage Attorney Jonathon W. Douglas at Battaglia, Ross, Dicus & McQuaid, P.A. for a free consultation. We will ensure that your loss is given the proper valuation in light of all existing site conditions and trends in the construction industry.
ST PETERSBURG PROPERTY DAMAGE ATTORNEY JONATHON W DOUGLAS
5858 Central Ave suite b
St. Petersburg, FL 33707