• Home
  • Home
  • Back
  • The Hanover's 2021 Home Renovation Report
  • The Hanover's 2021 Home Renovation Report
No

The Hanover's 2021 Home Renovation Report

The Hanover Insurance Group commissioned The Harris Poll to conduct its 2021 Home Renovation Report. The results found that more than half of homeowners made improvements/renovations to their home during the pandemic. Nearly half who made major improvements/renovations didn’t inform their insurance agent or company. Without talking to an insurance company, they run the risk that those renovations and home improvements wouldn’t be covered in the event of a fire or other damage. This trend is expected to continue.

 

Key findings

54%

of homeowners made major / minor home improvements / renovations to their homes during the pandemic.

 

69%

of homeowners have plans to make improvements / renovations to their homes in the next year.

40%

of those who made major home renovations during the pandemic failed to contact their insurance agent / company to ensure their coverage reflects the updated home's value.

26%

of those homeowners didn't know they had to contact their insurance agent / company after making updates to their home.

 

Top major home improvements/renovations made during pandemic

 

Kitchen/bath: 68%

 

Yard feature: 35%

 

Finished basement: 29%

 

 

With the increase in home renovations, it is important for homeowners to protect their investment by contacting their independent insurance agent. When remodels occur, homeowners are likely putting value into their homes that should be reflected in their insurance coverage. A conversation with an independent agent is critical for homeowners to ensure their insurance policy reflects the true value of their home after a renovation."

- Dick Lavey, president of Hanover Agency Markets

 

Homeowner considerations

  • When you make home improvements but fail to notify your insurance agent, you boost your home’s value but could render your home insurance policy inadequate and open yourself up to uninsured losses.
  • Contacting your independent insurance agent after any major home renovations is critical to ensure you are properly insured for the true value of your home.
  • Your independent agent can help you determine the necessary policy to cover damage to your home's structure, but bear in mind this policy must cover the cost of rebuilding your home at current construction costs.
  • Often when renovations are done on a home, it requires the “Coverage A” amount listed on the insurance policy to be updated. An independent agent can help determine whether or not this needs to be updated based on the type of renovation.
  • Independent agents will also be able to discuss if an umbrella policy is necessary based on home renovations.
  • As the trend continues, it will be critical for homeowners to work closely with their independent insurance agent on all renovations.

The Hanover partners with local independent agents to offer a broad suite of options that can be tailored to meet your unique coverage needs and lifestyle.

For example

If you added space to your property for a home office as a result of the pandemic without discussing coverage needs with your agent, your home’s value would be based on an outdated assessment.

They do not know the true value of your home. If an accident were to occur and you filed a claim to recoup the loss on that updated space, your insurance company may not be able to fully reimburse your claim based on the coverage limits you have purchased.

 

Survey method

This survey was conducted online within the United States by The Harris Poll on behalf of The Hanover Insurance Group from June 24-28, 2021 among 1,298 homeowners. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Kyle Tildsley at ktildsley@hanover.com.

 

No

The Hanover's 2021 Home Renovation Report

The Hanover Insurance Group commissioned The Harris Poll to conduct its 2021 Home Renovation Report. The results found that more than half of homeowners made improvements/renovations to their home during the pandemic. Nearly half who made major improvements/renovations didn’t inform their insurance agent or company. Without talking to an insurance company, they run the risk that those renovations and home improvements wouldn’t be covered in the event of a fire or other damage. This trend is expected to continue.

 

Key findings

54%

of homeowners made major / minor home improvements / renovations to their homes during the pandemic.

 

69%

of homeowners have plans to make improvements / renovations to their homes in the next year.

40%

of those who made major home renovations during the pandemic failed to contact their insurance agent / company to ensure their coverage reflects the updated home's value.

26%

of those homeowners didn't know they had to contact their insurance agent / company after making updates to their home.

 

Top major home improvements/renovations made during pandemic

 

Kitchen/bath: 68%

 

Yard feature: 35%

 

Finished basement: 29%

 

 

With the increase in home renovations, it is important for homeowners to protect their investment by contacting their independent insurance agent. When remodels occur, homeowners are likely putting value into their homes that should be reflected in their insurance coverage. A conversation with an independent agent is critical for homeowners to ensure their insurance policy reflects the true value of their home after a renovation."

- Dick Lavey, president of Hanover Agency Markets

 

Homeowner considerations

  • When you make home improvements but fail to notify your insurance agent, you boost your home’s value but could render your home insurance policy inadequate and open yourself up to uninsured losses.
  • Contacting your independent insurance agent after any major home renovations is critical to ensure you are properly insured for the true value of your home.
  • Your independent agent can help you determine the necessary policy to cover damage to your home's structure, but bear in mind this policy must cover the cost of rebuilding your home at current construction costs.
  • Often when renovations are done on a home, it requires the “Coverage A” amount listed on the insurance policy to be updated. An independent agent can help determine whether or not this needs to be updated based on the type of renovation.
  • Independent agents will also be able to discuss if an umbrella policy is necessary based on home renovations.
  • As the trend continues, it will be critical for homeowners to work closely with their independent insurance agent on all renovations.

The Hanover partners with local independent agents to offer a broad suite of options that can be tailored to meet your unique coverage needs and lifestyle.

For example

If you added space to your property for a home office as a result of the pandemic without discussing coverage needs with your agent, your home’s value would be based on an outdated assessment.

They do not know the true value of your home. If an accident were to occur and you filed a claim to recoup the loss on that updated space, your insurance company may not be able to fully reimburse your claim based on the coverage limits you have purchased.

 

Survey method

This survey was conducted online within the United States by The Harris Poll on behalf of The Hanover Insurance Group from June 24-28, 2021 among 1,298 homeowners. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Kyle Tildsley at ktildsley@hanover.com.