The effects of rising energy costs are affecting more than how Americans spend their summer vacation.
According to Marshall & Swift / Boeckh (MSB), the average cost of roofing shingles spiked 17 percent since last quarter.
In certain regions the company is seeing additional increases of as much as 9 percent since the end of July. As a result, MSB is issuing out-of-cycle building cost databases for its partial-loss claims estimating systems.
“The rising cost to repair or replace damaged roofs is especially significant as the hurricane season progresses. Insured losses from Hurricane Gustav are estimated to be in the billions of dollars, and Ike is close on his heels,” says Jonathan Kost, senior vice president of claims and commercial solutions at MSB. “Research shows that 90 percent of all property claims from hurricanes involve roof damage.”
The unusually high increases are attributed mainly to the price of oil, which affects transportation and manufacturing costs of the oil-based asphalt shingles.
Based on data collected from locations across United States, MSB reports an average material cost for 3-tab shingles of $49 per square as of the end of July 2008, a 17 percent increase since March 2008 and a 20 percent increase since July 2007. Based on these prices, the average national material cost to re-roof a 2200 square-foot home is an estimated $1,479 at the close of July 2008, compared to $1,255 for March 2008 and $1,230 for July 20072.
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