Construction costs in Texas have shifted significantly over the past several years. Materials, labor and contractor demand — especially after storm seasons — can impact what it actually costs to rebuild a home.

Yet many homeowners in Midland and Odessa haven’t reviewed their dwelling coverage in years.

A question we frequently hear at Killebrew Insurance is:

“If my home were a total loss, would my policy actually rebuild it at today’s prices?”

It’s a fair question — and one worth reviewing before hail season ramps up in West Texas.

Rebuild Cost vs. Market Value: What’s the Difference?

Home insurance is designed to cover rebuild cost, not market value.

Market value includes:

• Land value

• Location

• Supply and demand

Rebuild cost focuses strictly on:

• Materials

• Labor

• Construction expenses

According to the Texas Department of Insurance (TDI), homeowners should periodically review their dwelling limits to ensure they reflect current rebuilding costs.

In hail-prone regions like Midland and Odessa, storm-related contractor demand can temporarily raise costs even further.

Why Rebuild Costs Change in West Texas

Several factors influence rebuild pricing:

• Inflation affecting lumber, roofing and materials
• Skilled labor shortages
• Increased demand after severe weather
• Home improvements that weren’t reported

West Texas homeowners often assume their policy automatically adjusts enough each year. Sometimes it does — sometimes it doesn’t fully keep pace with real construction costs.

A Real West Texas Scenario

Last spring, a Midland homeowner contacted us after a significant hailstorm damaged their roof and exterior siding.

During the claim review, it became clear their coverage limits were based on estimates from several years earlier. Since then, local construction costs had increased.

Nothing was wrong with the policy itself — it just hadn’t been reviewed recently.

After the claim, the homeowner chose to adjust their dwelling limit at renewal so future coverage better reflected today’s rebuild environment.

Situations like this are not unusual, especially in growing areas like Midland and Odessa.

Signs Your Coverage May Need a Review

You may want to review your dwelling coverage if:

• It has been more than two years since your last review
• You remodeled or upgraded your home
• You added square footage
• Construction costs have risen locally
• Your insured value seems lower than current building estimates

A short policy review can provide clarity.

Frequently Asked Questions

Does homeowners insurance cover the market value of my home?

No. It is designed to cover the cost to rebuild, not resale value.

How often should I review my dwelling coverage?

Annually is generally recommended, especially before storm season.

Do home renovations increase rebuild costs?

Yes. Improvements often raise replacement cost.

Are rebuild costs rising in Texas?

In many areas, yes — due to material and labor trends.

Will increasing coverage dramatically raise my premium?

Not necessarily. It depends on the adjustment and carrier.

Why This Matters Before Storm Season

Midland and Odessa homeowners understand how quickly hailstorms can move through West Texas.

Storm season is not the ideal time to discover coverage gaps. Reviewing coverage beforehand allows homeowners to make informed decisions calmly, rather than reactively.

Preparation does not prevent storms — but it can reduce financial stress afterward.

Local Perspective

At Killebrew Insurance, we work with homeowners across Midland, Odessa and surrounding West Texas communities every day. Our focus is simple: help families understand what their policy is designed to do before they need to use it.

Clear information. No pressure.

Schedule a Coverage Review

If you would like a quick second opinion or policy review:

📞 Midland: 432-694-0508
📞 Odessa: 432-332-6322
🌐 www.killebrewinsurance.com

Insurance decisions are easier when you understand how coverage works — especially in a hail-prone region like West Texas.