Call: 203-637-6655 or email – Kyle Shepard

Shepard Insurance Group

Trending in Opposite Directions

It might be the SALT (state and local tax) deduction on the income tax cap of $10,000 or the changing appetite of millennials, but property values are at risk, especially for residences that are further away from downtown.

“Property Values and Construction Values are trending in opposite directions”

Unfortunately construction values are not connected to that trend:

Look at this example:

At Shepard we recently insured a property for more than $20M to rebuild. The new owner bought the property for less than $5M. This is an extreme example, but it is an indication of the property values and construction values trending in opposite directions..

Our annual client home insurance reviews find that almost every property has a replacement cost figure higher than actual retail value of the property if it were being sold.

Construction costs trending higher while property values depreciate is a challenge for insuring a property. Add the element of urgency in responding to a water damage loss or fire, and construction costs accelerate.


If you have questions about the replacement cost of insuring your home, check with Kyle to make sure your numbers are in line with the true rebuild, at 203.698.9342 or

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