The Rise of Lumber!

It’s no secret that home construction costs impact insurance rates. Your home’s replacement cost estimate, the amount needed to rebuild your home from the bottom up, is based on construction and lumber costs. As lumber prices go up, so does your replacement cost estimate, and ultimately, your premium.

Lumber Prices Are Up 193%

Lumber prices are at an all-time high. Back in April 2021, the cost of lumber per thousand board feet hit $1,048 – a 193 percent jump year over year. That surge continued throughout May, and while lumber prices have begun to fall, they’re still up over 300% from April 2020 .

The chart above shows just how much lumber costs have skyrocketed in 2021 compared to the previous five years. For example, lumber prices in April 2016 hovered around $300 per thousand board feet. They steadily climbed through 2018, reaching nearly $500, dipped again in 2019, and have been climbing rapidly from 2020 through today.

Just last month alone we moved over a quarter million dollars’ worth of insurance premium an in order to alleviate the current insurance markets. Insurance markets due to weather related incidents that all of us are aware like Oregon hitting triple digits temperatures, Texas having winter anomalies etc. insurance rates will be on the rise for the next two years we’re going into a hard market that hasn’t been seen since the 80s and there’s a lot of protocols and a lot of adjustments, we can make to make sure that a transition is done smoothly.

Sherry BermanSherry Berman
17:55 08 Dec 22
We just moved over to e3 with Chris Stone, 1 1/2 years ago. Our house flooded during snowmeggedon in Texas last February. The insurance companies were overwhelmed with phone calls from Texas. Our insurance company was not responding to us on a timely basis, and because of the supply chain shortage, we knew we needed to act quickly. Chris knew who to talk to at our insurance company, and was a total advocate for us and made sure that our needs were being taken care of. Our last insurance agent was the advocate for the insurance company, not us. Chris knows the business inside out. He guided us along the process of what to do. e3 represents many different insurance companies, which gives Chris the ability to guide you into the best policy that meets your needs. He explains the insurance lingo in layman terms, and makes sure that you and your family are protected. My husband and I totally trust Chris to give us the best policy with in our budget.
Andy BermanAndy Berman
21:56 07 Dec 22
e3 Insurance and Chris Stone are simply the best!! After experiencing a flood in our house and a total redo necessary, Chris made the experience completely seamless!! There simply is no one better!!
Alex ThipkhosithkunAlex Thipkhosithkun
19:32 03 Nov 22
I can't say enough good things about Chris at e3 Insurance. He really is an expert in his field and was really helpful and thoughtful through my home and car insurance purchasing experience. But it doesn't stop there. Recently, I was facing a relatively stressful plumbing situation with my newly purchased house and after talking to Chris and putting me in contact with the right people, they had someone come out THAT afternoon-- Amazing!
Austin SandozAustin Sandoz
14:45 06 Oct 22
Chris was a client of mine for a long time. When I reached out to get a quote I was blown away. I found out my brand-new 2022 Jeep was severely underinsured and I had little to no protection for my assets.After comparing my old policy side by side with my new policy he was able to quadruple my coverage and protect my assets for LESS than what I was paying before. When it's done right, it's done right.
Sheryl KlousiaSheryl Klousia
14:29 06 Mar 22
Chris has been extremely helpful in finding us great policies for house and car insurance. He reviews our policy yearly to ensure we are getting the best rate and best coverage… and recommends changing when needed. We are very satisfied with his service… he has saved us so much over the 3 years that we have been with him ! So glad we found him. Our kids all use his services also !

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