Furniture Delays and Homeowners Insurance
Homeowners insurance is a blessing whenever you have experienced a loss. Filing an insurance claim on your homeowners policy for a covered peril can help you rebuild your home or replace its contents. Unfortunately, the past couple of years has made it more difficult for those who need to replace their furniture to get the furniture they are looking for. Since the start of the pandemic, long delays for ordering furniture have become the norm. This has led to homeowners all over the country scrambling to try and find everything from dining tables to sofas. Horror stories of trying to get a couch are far too common and it does not appear that it will get better anytime soon. Why are there delays with ordering new furniture and what does this mean for filing an insurance claim on your homeowners insurance? The team at Streamline Insurance is unpack it …
Causes of the Great Furniture Shortage
I can imagine few things worse than filing an insurance claim on your homeowners insurance policy, getting your payment, and then not being able to find furniture. There is a great furniture shortage that is impacting the world. It started around the same time as the pandemic, but there is a chance that it will stick around even longer. There are multiple reasons why there is a big shortage of furniture and why it is causing delays for homeowners.
Demand for New Furniture Increased
One factor that has greatly impacted furniture shopping has been an increase in demand for new furniture. There are some pleasant and not-so-pleasant reasons for the sudden rush to refurnish one’s house. On the pleasant side, we have seen an historic real estate market where many have bought new houses or have moved to new states. At the same time, many homeowners took the pandemic as an opportunity to do some long-desired home renovation. Included in many of these renovations were new furniture purchases.
On the not-so-pleasant side, we have seen widespread wildfires, hurricanes, and tornadoes over the past few years. All of these various natural disasters have created widespread catastrophic losses and total loss claims across the nation. Homes have been destroyed by wind, fire, and water – all of which need to be repaired and have their furniture replaced. Thankfully, homeowners insurance, various business insurance policies, and flood insurance will help homeowners recover from these disasters. The downside of all these homeowners buying furniture at the same time is demand has exceeded the available supply. To add to these furniture woes, there are also problems on the supply side of the equation.
Supply of New Furniture Decreased
At the same time as demand for new furniture has gone through the roof, there have been massive supply shocks to the furniture industry. First, the pandemic caused stoppages and labor shortages resulting in massive backlogs. Second, lumber and other core materials became more expensive during the pandemic. This made it harder to secure materials, and even when you find them, it ended up making furniture more expensive. Finally, COVID restrictions created international shipping congestion, creating massive delays and increasing costs. We all know this as the great ‘supply chain crisis’ that we read so much about. All of these are contributing to a scenario where less furniture is made, it costs more to produce them, and it takes longer to ship them. Functionally, there is a perfect storm that is making it miserable for furniture shoppers. For those buying furniture after an insurance claim, this adds insult to injury.
Final Thoughts
Many experts predict that today’s furniture shopping difficulties will continue into the unforeseeable future. The Russian war against Ukraine is creating new issues for the global supply chain, which will also impact the furniture industry. Lumber prices seem to spike as soon as they decrease, so there does not appear to be relief in the cost of materials. At the same time, Chinese restrictions are showing us that COVID still might have more to say about global manufacturing. The bottom line is that furniture shoppers need patience and should go into the process expecting delays and/or shortages. Tragically, this is the new normal and we might just have to accept these subpar conditions.
Thankfully, you do not have to accept subpar homeowners insurance. You can get quality insurance policies from reputable carriers at premiums that are affordable for you. If you would like to visit with one of our insurance brokers to find a homeowners policy that is perfect for you, contact us. The insurance professinoals at Streamline Insurance are ready to help you find the coverage you need at the value you desire. Get a quote on your homeowners insurance or auto insurance today!
