Is Your Dream Reno Covered? How Inflation and Material Costs Lead to Home Underinsurance

You’ve poured time, money, and love into renovating your Maritime home. But here’s the hidden risk many homeowners overlook: if you haven’t updated your insurance policy since your renovation, your coverage may no longer reflect your home’s true rebuild cost.

And in today’s world of rising material costs, labour shortages, and supply chain challenges, that gap could be the difference between a full rebuild and an out-of-pocket nightmare.

The Quiet Threat: The Illusion of Full Coverage

Most homeowners assume their policy automatically adjusts with home value, but that’s not how it works. Your policy’s replacement cost is based on what it would take to rebuild your home from scratch, not its market price.

Now imagine this: you’ve just finished a $60,000 kitchen remodel. A year later, a storm damages your home. You file a claim, only to learn your policy still reflects your home’s pre-renovation value. The payout won’t come close to replacing what you’ve built.

This isn’t rare, it’s happening across Nova Scotia and PEI as inflation continues to push construction costs higher every year.

The Real Numbers: Construction Costs Have Soared

Across the Maritimes, rebuild expenses have jumped dramatically since 2020:

If your insurance limits haven’t been reviewed since before these price jumps, there’s a strong chance your coverage hasn’t kept up with reality.

The Cluett Advantage: Protecting What You’ve Built

Renovations are exciting, but they change everything about your home’s value and replacement needs. That’s where having a local, proactive insurance partner makes all the difference.

Here’s how Cluett Insurance protects your investment:

1. We Calculate Using Real Maritime Costs: Online tools often rely on national averages. We use local construction and labour data from Nova Scotia and PEI, so your coverage reflects the real cost to rebuild here, not halfway across the country.
2. We Close the “Final Limit Gap”: Your upgraded materials and systems increase your home’s rebuild value. We review and raise your dwelling limit where needed to ensure you’re not left covering the shortfall.
3. We Protect You During Construction: Major renos can expose your home to extra risks (open walls, unfinished roofs, etc.). We make sure you’re protected from day one with the right Renovation Endorsement, so coverage doesn’t lapse mid-project.

Your Home Is Worth More, Let’s Make Sure It’s Protected That Way

Your home is your biggest investment. But if inflation, material shortages, or upgrades have changed its rebuild cost, your current policy may not be enough.

Take 15 minutes for a quick Replacement Cost Review with Cluett Insurance. We’ll verify your coverage reflects what your home is truly worth today, so you can enjoy your renovations with complete peace of mind.

Call or Contact to schedule your review today. →

Have questions? Give us a call or stop by our Dartmouth or Summerside office. We’re always here to help you protect what matters most.