Protection from unexpected home improvement costs

In 2020, Americans were home more than ever. And, with more hours spent at home, came more desire to update, improve or expand current spaces.

According to Insurance Research Council, one-third of American homeowners renovated their homes since the start of the pandemic. Of these home improvers, 21% spent $100,000 or more.

However, despite all the money spent and hammers swung, only about half of homeowners informed their insurance company of their home improvement projects. As many renovations add value to your home, it is important to connect with your insurance agent or company to ensure you update or add to your home insurance coverage along with your home improvements.  

Coverages to consider

One of the most valuable home insurance options is guaranteed replacement cost, which helps to insure full replacement cost to your rebuild your home. If your renovations add value to your home, you may want to transition to this coverage or increase your limits.

Based on your next home renovation, there are additional coverage options you should consider…

Renovation Action/coverage to consider
Kitchen/bathroom upgrade Service line protection in the event water lines are damaged and equipment breakdown if appliances have unforeseen electrical/mechanical issues
Addition/deck Update coverage to be sure replacement cost reflects added value of home
Home office for business Endorsement of home policy or additional business policy to cover all business-related liability
Finished basement Water backup, especially if a sump pump is in use
Pool Higher liability coverage
Roof/siding Roof/siding restoration to ensure craftsmanship and similar material match the rest of your home in the event of a loss

And don’t forget to protect yourself during the remodeling period. An umbrella policy may be a great option for those tackling home projects that involve contractors and service providers outside of your policy’s coverage limits.

Talk to your independent insurance agent about coverage options – including The Hanover’s high-value Prestige offerings – to protect yourself through your next home, sweet home project.




All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage.

LC 2021-082