Photo: 123RF, Andy Dean Photography
Construction costs have risen at a pace not seen for nearly a decade, as anyone building or renovating a house will know.
So what are the implications of this for house insurance?
According to CoreLogic's Cordell Housing Index Price (CHIP), residential construction costs surged 2.2 per cent in the June quarter, the largest since the index began in 2012, pushing the annual growth rate of building costs to 4.5 per cent, up from 3.3 per cent in March.
Those in the construction industry report double-digit cost increases for some materials, as well as wage pressures pushing up overall build prices.
The Insurance Council says this does have implications for policy holders - but the responsibility lies with homeowners to ensure they're paying for adequate cover. Kathryn speaks with Chief Executive, Tim Grafton.
