The report analyzed 7,606,375 assignments totaling $68.5 billion in losses from 2021. Findings include: "The restoration and construction industries are dealing with significant inflation and supply chain challenges, leading to substantial increases in loss severity for insurers," said Mike Fulton, president of Verisk property estimating solutions. "While 2021 was already a very active year for storm activity, which is typically what drives these expenses, a combination of issues — including continued demand surge in the housing market and overall inflation — had a significant role in pushing costs to record levels." The report found that average reconstruction costs experienced slight increases during Q1 and Q2, followed by a nearly 9 percent increase in the third quarter of 2021. Costs then decreased nearly 5 percent in the fourth quarter, primarily driven by changes in lumber costs.