According to a recent study around one-third of homeowners did not know that they should update their insurance policy after a renovation. A survey done by The Hanover revealed that 61% of US home insurance policyholders are planning on renovations, but only 34% know to update their homeowners’ insurance coverage once the renovation is complete.
“Proactive outreach throughout the year also results in powerful conversations that give customers peace of mind that their age3nts are continuously looking for ways to protect investments and add value to the relationship,” noted The Hanover report.
Renovations will raise the value of a home, so you might not have enough coverage with your original policy. If you suffer a major loss, this could hurt you and your pocket. Usually when a renovation is completed, there needs to be a modified Coverage A amount listed on the original policy. This is important because it is reported that around forty percent of homeowners will renovate and spend more than $50,000.
Homeowners are staying put in what they have due to higher interest rates and rising home prices. Around 28% of those that planned on purchasing a home in 2022 said that higher interest rates and home prices encouraged them to stay put. Around seventy percent of those who were going to purchase a home said that rising interest rates and home prices affected their decision.
“These trends should prompt agents to talk with their customers to ensure their homeowners’ policies reflect the true value of their home after a renovation, and that their policies protect the investments they have made to their home. These conversations can help create a strong customer experience that reminds customers of the value their agent provides,” says Richard W. Lavey, president of Hanover Agency Markets.
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