Since the cost of materials, like lumber and building supplies, varies, inflation protection ensures your home is rebuilt at the same value, regardless of how much something costs. Without inflation protection, your home could be destroyed, but you’d be unable to rebuild it due to inflation and the cost of materials. Essentially, your dollar won’t go as far as time goes on unless you periodically rate your coverage for these increases.
If you’ve done a lot of renovations on your home or inflation is a concern for you, check with your home insurance company. An agent can explain exactly what their protection covers and how it will benefit you.
That said, every insurance company is different. You can also shop around with multiple providers to ensure you’re happy with the coverage they offer.