Property reconstruction costs continued an ongoing pattern of slow but steady growth over 2015, hitting insurers in the wallet and threatening to put more pressure on property and casualty premiums.
According to data from Verisk Insurance Solutions, overall reconstruction costs in Canada rose 2.3% over 2015, including a 1% rise in the fourth quarter alone.
In Canada, all ten provinces experienced reconstruction costs increases during the last 12 months, with Alberta recording the largest increase at 3.5%.
Overall material costs for common repairs increased 1.4% from October 2015 to January 2016, with significant price hikes seen in roofing costs at 7.7%, while drywall costs increased 2.1%. Paint and interior trim however, both had weak growth in costs, at 0.6% each; lumber costs were virtually unchanged; and carpet costs declined 0.2%.
Labour rates over the year increased 2.2% per cent, with drywall installers seeing the biggest increase at 8%. Carpenters experienced the lowest growth at 0.3%.
The rate hikes in Canada were on a par with those in the US, which also experienced an overall increase of 2.3% over the year.
