In inflationary times, the owner of a homeowner's insurance policy must lower the policy's insured amount in order to profitably adjust for inflation.

Question

Quizplus · Accepted Answer

Inflationary times may increase the cost of labor and materials, and therefore increase the cost of rebuilding a damaged home. As a result, the owner of a homeowner's insurance policy may need to increase the insured amount in order to adequately cover any potential damages or losses.

In Inflationary Times, the Owner of a Homeowner's Insurance Policy