Rising Prices, Rising Risks 

Inflation has become more than just a headline; it’s a daily reality affecting fire and EMS departments nationwide. Rising costs of materials, vehicles and specialized equipment means what was fully covered a few years ago might not be the same today.  

The Rising Cost of Readiness 

Over the past few years, the price of building materials, specialized vehicles, and equipment has climbed sharply. Lumber and steel have increased by as much as 30–40%, while supply chain delays continue to drive up the cost of ambulances, fire trucks, equipment, and protective gear. 

For many departments, this means insurance coverage that once provided full protection could now fall short. For example, a fire station insured for $1 million in 2018 might cost over $1.3 million to rebuild today, leaving a significant gap that must come from operating budgets, grants, or local funding. 

The Hidden Risk of Underinsurance 

When coverage doesn’t keep up with inflation, departments face tough financial choices after a loss. Rebuilding projects stall, service interruptions occur, and funds meant for training or community outreach must be redirected to fill coverage gaps. 

This is the hidden danger of underinsurance: by not adjusting property and equipment values regularly, organizations unknowingly expose themselves to substantial out-of-pocket costs when they can least afford it. 

How ESIP Helps Departments Stay Protected 

At ESIP, we understand your mission can’t wait, and neither can your recovery. Our coverage options are designed to help departments stay financially secure, even as prices rise. 

Key protections include: 

• Guaranteed Replacement Cost Coverage: This implies that regardless of how much prices have gone up, the insurer will pay for whatever it takes to rebuild or replace your property with a similar structure. The insurer promises to cover the cost to rebuild what you had before, even if inflation or material shortages cause it to be significantly higher than your initial insured value. There is no hard cap or percentage limit. 
• For instance, the insurance company will pay the full $1.4 million if your fire station was insured for $1 million, but rebuilding now costs $1.4 million. 
   

• Annual Policy Reviews: Regular reviews that help adjust your coverage limits to match today’s rebuilding and replacement costs, ensuring your policy reflects current market conditions, not outdated values. 
   

• Equipment Valuation Support: Helps you know what your equipment is truly worth today, so your coverage keeps pace with rising costs. It also provides accurate assessments for specialized vehicles, tools, and protective gear, ensuring your coverage matches real world replacement values not outdated figures.  

These steps can help ensure your insurance coverage grows with economic inflation, not against it. 
 

Preparing for the Unexpected 

While inflation is beyond our control, being proactive about your coverage isn’t. Regular reviews, updated valuations, and the right coverage choices help prevent unexpected shortfalls that can delay recovery or strain budgets. 

Because when it comes to protecting your property and your people, it’s better to update your coverage today than to discover the gap tomorrow.