Replacement Costs

“This is Commissioner Troy Downing. Lumber prices are at all-time highs. Consumer prices surged 5% last month, the fastest in over a decade. Everything is getting more expensive, but few Montanans know this means your insurance coverage may not meet the replacement costs following a loss. 

Most commercial and many homeowners policies include a clause known as a “co-insurance penalty.” This states if a property owner is insured for less than the replacement cost, a penalty can be added to a partial loss–even if that loss is below the coverage amount. 

Make sure to contact your insurance agent to ensure your property is adequately covered and reach out to our agency with any questions by going to or by calling our office at 444-2040.”


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