Insurance replacement costs with materials increase?

[Andrew S.]

Hello everyone,

I'm reviewing my insurance policies from 2020 for tax recording.  My replacement costs, labeled at category A are equivalent to ~$90 / sq ft.  With the recent material prices, I've heard of new construction costing $150 - $200 / sq ft for a single family home.  I assume most insurance companies will increase their renewal costs next year. Is this something that other investors are updating their policies to increase their replacement amount?  I understand this will increase the amount I pay.  

Thanks,

Andrew