Verisk Report: Reconstruction costs increase as lumber prices rise
Total reconstruction costs, including materials and retail labor, increased sharply again, up 9.1% from January 2020 to January 2021 as lumber costs posted a 54% jump. This continued a surge that began in the previous reporting period with 9.2% growth from October 2019 to October 2020. But the fourth-quarter increase leveled off at 0.8%, following a 5.0% spike in the third quarter.
Verisk is a global data analytics and risk assessment company that serves the P&C industry. Verisk helps carriers estimate and manage the risks associated with natural and man-made catastrophes, weather, and climate. This quarterly report on reconstruction cost trends at the national and state levels.