As homeowners embark on major renovation projects, they may unknowingly expose themselves to significant financial risks by not updating their insurance policies. A recent survey by Nationwide highlights this growing concern, revealing that many homeowners complete substantial upgrades without adjusting their coverage.
Key Findings:
- Home Improvement Surge: Over the past two years, 51% of homeowners undertook major renovations, including kitchen remodels and home additions.
- DIY Trends: 53% tackled expert-level projects independently, often relying on social media for guidance, with 48% citing platforms as their primary resource.
- Insurance Oversight: Alarmingly, 55% of those who completed significant renovations neglected to revise their insurance policies, leaving their homes potentially underinsured.
Popular Projects and Costs:
- Basements and Doors: Basement upgrades and front door replacements top the list, undertaken by 43% and 41% of surveyed homeowners, respectively.
- Kitchen and Bathroom Redos: Kitchen remodels (38%) and bathroom renovations (39%) remain staples.
- Comprehensive Overhauls: Full-home renovations (36%) and additions like new rooms or garages (35%) are increasingly common.
Financial Implications:
Empty nesters, in particular, are pouring more resources into high-value upgrades. For example:
- Kitchen remodels: $18,672 (empty nesters) vs. $9,702 (average homeowners)
- Full-home renovations: $90,000 (empty nesters) vs. $36,900 (average homeowners)
- Window replacements: $15,375 (empty nesters) vs. $4,917 (average homeowners)
Expert Insight:
Casey Kempton, President of Nationwide’s P&C Personal Lines, emphasizes the importance of revisiting insurance coverage:
“Every homeowner should review their home insurance coverage with their independent insurance agent regularly to avoid potential gaps.”
Protect Your Investment:
At Skyscraper Insurance, we understand the complexities of home improvements and their impact on insurance. Whether you’re adding a new room or upgrading your kitchen, our experts can help ensure you’re fully covered.
Don’t leave your dream home unprotected! Contact us today for a free consultation to safeguard your renovations and future.
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