December 2, 2022

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Home insurance rates on the rise

Inflation and supply shortages are really making it hard to buy or build a house because prices are up – and now,  so is the cost of insurance.

The effects of inflation reflect on things we spend our hard-earned money on every day. Now, people in the valley and others looking to make the move here will have to consider the cost of building a home and the cost it’ll take to insure it.

Rose Ovalle, CEO agent for hope Insurance Agency, said her company is seeing an average price of $110 a square foot to build a traditional brick home in the Valley.

“Three to four years ago you could build a home, a nice home, for about $60, $70 a square foot,” Ovalle said. “You can’t do that anymore.”

McAllen Economic Development Corporation President and CEO Keith Patridge said the supply chain backlog is pushing insurance rates up.

“The construction building materials are in short supply, which is driving the price of materials up,” Patridge said. “The availability of labor for the construction of the buildings is also resulting in construction cost going up.”

Ovalle’s advice to cut costs if you’re already a homeowner is to talk things out with your insurance agent to see if they can help you lower your premium. She also recommends those looking at building or moving to the Valley see if alternatives like renting or leasing works are better options.

Watch the video above for the full story.