Even during low inflationary times, it is wise to evaluate your property insurance needs periodically. Replacement costs keep rising, and even if that is only 2% per year, over 5 years, that makes a $100,000 replacement cost $110,000 five years later.....that's up 10% when you compound 2% over 5 years. If inflation is at 4%, that can escalate this number by 21% in 5 years!
Most people rely on 'others' to evaluate replacement costs. Most people have not built a home or renovated one to know what construction costs. The cost is not merely the physical work and materials: often, it has to include living somewhere else while the work is being done, plus the cost of time finding a contractor, architect/engineer fees, bidding, getting approvals, etc. NOTHING in construction moves quickly.
A family with three young children suddenly found themselves in need of a place to stay over the winter holidays because of a fire next door to their home. Firefighters needed to enter their home to access the raging fire next door. They chopped big holes in their walls with axes, dragged the firehouses up the staircase, and sprayed the fire until it was out. The family was left with a terrible mess of structural, water, and smoke damage. A Seller I was representing decided to temporarily remove their Russian Hill home from the MLS, and its staging for two months to help them out. Luckily, this family had an up-to-date insurance policy which they needed through no fault of their own.
Friends in a condominium discovered a living room full of water caused the upstairs neighbors' plumbing problem. After spending nine months in a nearby hotel, they were thrilled to move back in and cook their own meals. Luckily, this couple and their upstairs neighbors had up-to-date insurance policies.