Insurance and massive lumber increases

[Ken07AOVette]

I have been talking to people that have been looking into building or renovating, myself included and of course it got me thinking about insurance. If you look at the price of a sheet of plywood;

3/4” Plywood Standard:
March 2020 - $37.98 /sheet
February 2021 - $72.49 /sheet
March 2021 - $83.49 /sheet
April 2021 - $95.98 /sheet
That is 252% price increase on one of the most used piece of common lumber for construction.

The Cooperators said this morning that yes absolutely prices are going to be going up. They have to. For every house that is burned because someone is mad or cant make their payments, the rest of us are going to carry the burden.

My renewal is in May. I just can not wait to find out how much this will affect me. What a scam all of this is.

They did say however that as long as you have guaranteed replacement on your buildings that no matter the cost to replace, it will be replaced to the same square footage up to the same insured value.

Pay pay pay pay pay pay pay

[Husty]

I think the lumber business was sick of being screwed over we can blame it on covid, wildfires, or flying spaghettis monsters. But with inflation and crazy real-estate markets id want a bigger cut of the pie and now have a good excuse. I also heard that there is like 5 major lumber suppliers soo monopoly?

Inflation of basic goods is a very bad sign look at Venezuela or Germany (before ww2).

[Cigarguy]

Not to worry. Insurance rates will only go up with lumber being the excuse but when lumber comes back to normal, the insurance rates will stay at the artificial high.

[Cement Bench]

try to renew early and reset the premiums

[Jim Blake]

Our insurance is due April 30 and I just received the new premiums and details.

The insurance coverage for the shop, outbuildings and house were increased in value by 15%. The insurance premiums went up 8%.

I sure wouldn't want to be starting out building anything right now!! I wonder what the price of lumber will be by next year? The inflation numbers posted by the Government are a joke.

[tbiddy]

Renewing my commercial liability insurance and was told rates will be up 10-15%.

[Fish along]

Its not the price of plywood that bothers me so much as the OSB which is the most used sheeting material, the price of it is totally off the wall, and its made from scrap wood and glue, when they started making it the price was 2.50 per sheet.and now its like 40.00.

[fordtruckin]

Was shocked last month when I wanted to buy some OSB for building shelves in my garage. Local lumber yard had some they got last fall so they didn’t Jack the price up to current prices. Still 48$ for 7/16 OSB is insane!

[tri777]

Some on here last Sept were saying lumber prices were suppose to be lower in 1st/2nd quarter of
this year, guess it didn't age well, these prices are out of whack.

[Sooner]

Originally Posted by tri777

Some on here last Sept were saying lumber prices were suppose to be lower in 1st/2nd quarter of
this year, guess it didn't age well, these prices are out of whack.

I was hoping the same and put off doing a job last year. Looks like my shed roof replacement is gonna cost a lot more that it would have last fall .

[Arty]

As lumber is approaching the price of steel, I believe it's time to acquire some basic metalworking tools such as welder, grinder and such. Cosmetic (vs structural) wood prices don't seem to have increased as much, and that can be used to dress up any steel projects going forward.

[Ken07AOVette]

Originally Posted by Sooner

I was hoping the same and put off doing a job last year. Looks like my shed roof replacement is gonna cost a lot more that it would have last fall .

Oh am I glad I did the house and garage in 2019!

They both badly needed shingles.

I have 8 sheets of 3/4" plywood leaning beside the shed, might throw the toolbox outside and put the wooden gold in its place

[57charlie]

It's getting to the point that you could probably throw a 2 x 4 under your vehicle and maybe the catalytic converter thieves will take that instead of sawing off half your exhaust system.

[AtimoseMan]

Check out the stumpage fee that mills have to pay on the Alberta Stumpage Fees web site. It was $5.50 per m3 about 2 years ago and April 1st / 2021 its at $90.00 per m3. This will help understand whats going on out there.

[AtimoseMan]

https://www.alberta.ca/timber-dues-r...roundwood.aspx

[buckbrush]

Originally Posted by AtimoseMan

Check out the stumpage fee that mills have to pay on the Alberta Stumpage Fees web site. It was $5.50 per m3 about 2 years ago and April 1st / 2021 its at $90.00 per m3. This will help understand whats going on out there.

That's the first I've heard of this. Thanks for sharing.

[EdmontonEli]

Was wondering when the inflation was going to hit the market.

Knew it was going to hit sooner or later due to the amount money printed.

[leeelmer]

Stumpage goes up based on the price of a common 2x4
So sadly it all gets passed onto the consumer. Mills were shut down due to covid. So supply went down, mills did not ramp up as they believed that demand would be low, but it was the opposite. People were home and wanted to do stuff. Supply was low so prices went up. When prices go up stumpage goes up. And then prices stay high.
Vicious.
I am building a timber frame right now, and I am happy I have all my big timbers all ready. But the osb and plywood I need has tripled in price.
****es me off

[lmtada]

True.

[Drewski Canuck]

Originally Posted by leeelmer

Stumpage goes up based on the price of a common 2x4
So sadly it all gets passed onto the consumer. Mills were shut down due to covid. So supply went down, mills did not ramp up as they believed that demand would be low, but it was the opposite. People were home and wanted to do stuff. Supply was low so prices went up. When prices go up stumpage goes up. And then prices stay high.
Vicious.
I am building a timber frame right now, and I am happy I have all my big timbers all ready. But the osb and plywood I need has tripled in price.
****es me off

Gee, you are SOOO CLOSE to the truth. My Office is across from a railway siding that has been vacant for years. Since November, there have been hundreds of lifts of dimensional lumber arriving at night, and being loaded for EXPORT through the day.

In the US, alot of their harvestable timber burned in the fires of California, Oregon, and Washington, not to mention Colorado and Montana.

THEN there were the Hurricanes along the Gulf Coast that squashed houses like cardboard.

AND we have alot of overseas sales to Asia.

On top of that, Alberta's forest fires and BC's forest forest fires over the last couple of years really took out alot of supply.

BC's Forests were wiped out in 2008 - 12 due to the mountain pine beetle infestation, so their available harvestable timber was already low, and the rest then burned up in massive forest fires after that.

Forestry is one of the few bright spots in Alberta's economy. Enjoy the pain that comes with it.

Drewski

[jstubbs]

Got a quote for a client for a wooden site built structure. $45k all inwith labour.

Pre March 2020 it would have cost closer to $15k.

Craziness.

[Engels]

Originally Posted by Fish along

Its not the price of plywood that bothers me so much as the OSB which is the most used sheeting material, the price of it is totally off the wall, and its made from scrap wood and glue, when they started making it the price was 2.50 per sheet.and now its like 40.00.

i got my pricing from my lumber supplier today. pricing is 56.85/ sheet for 3/8 osb. $73/ sheet for 23/32 T&G OSB..... Craziness

[dodger]

The snowstorm in Texas is also going to nail everyone on everything. All chemicals are skyrocketing up to 40%. The resin in the OSB is up because of shortages of monomers etc. There are massive shortages of all of these chemicals. It will be a year of hyper inflation due to the 2020 perfect storm of everything bad.

Dodger.

[Grizzly Adams]

Originally Posted by Arty

As lumber is approaching the price of steel, I believe it's time to acquire some basic metalworking tools such as welder, grinder and such. Cosmetic (vs structural) wood prices don't seem to have increased as much, and that can be used to dress up any steel projects going forward.

There were actually some steel based houses built at one time, structurally it makes a lot of sense. I suspect relative cost killed that, but times have changed.

Grizz

[walleye guy]

3/4" pressure treater plywood $100.00 a sheet !! unbelievable

[Grizzly Adams]

Originally Posted by EdmontonEli

Was wondering when the inflation was going to hit the market.

Knew it was going to hit sooner or later due to the amount money printed.

I expect it's more along this line, just like gas.

https://www.cmegroup.com/trading/agr...erBrochure.pdf


Grizz

[Ronaround]

Same in the states. were getting pounded for apparently no good reason.
tried to sell some woods on my properties and they offered minimal, like 3k per 8-10 acres or woods, says red oak,and hickory,and softwoods not paying well.
went buy OSB and went up form 20 bucks to 54. bucks per sheet, 2x4's and all.
appears another COVID BS buildup of price gouging.
Thing is theirs plenty of money and many have to issue to buy.

[Ken07AOVette]

I have 8 sheets of g1s 3/4" plywood leaning against a shed, am thinking I might need an attack mountain lion to protect it!

[lannie]

Originally Posted by Ken07AOVette

I have 8 sheets of g1s 3/4" plywood leaning against a shed, am thinking I might need an attack mountain lion to protect it!

What a marketer. I thought u had some in post #1 lol

[CranePete]

I see on tonight’s news that lumber hit $1100.00 USD/1000bf. Yikes!