We have seen first-had how COVID-19 has impacted the homeowner’s insurance market over the last year and a half. Our partner, Selective Insurance, reports that home renovations are up 25% from December 2020 to July 2021. Of those, one survey found that only 66% of homeowners who made home improvements since the beginning of the pandemic have updated their homeowner’s coverage.
Here are three reasons homeowners need more coverage than they did before the pandemic:
Home remodeling and purchasing.
Selective Insurance reports that over 1 in 3 Americans are renovating at least a room, basement, or attic. Whether you add a backyard pool, get a new roof, replace your HVAC system, renovate your kitchen, or add a home office, these changes can impact your insurance.
Sometimes homeowners who have upgraded their dwellings hesitate to let us know, because they are worried their premiums might increase. But the fact is, not all home improvements lead to higher premiums.
Some improvements, such as a total kitchen remodel, will raise the value of your home. So we may need to increase your coverage to reflect the true value in the event you ever have a claim. But there are many other improvements (new roof, new wiring, new air unit, or the addition of a home security system), which could reduce your insurance costs.
**For more on replacement value vs. market value, click here.
Cyber threats.
In the last year and a half, there has been a significant increase in cybersecurity threats, especially as so many people moved to working at home. These threats can include hacking, phishing, identity fraud, unemployment scams and more. This trend may be here to stay.
Rising settlements
The payouts being awarded by juries continue to grow. With this increase and the increase in litigation, we will encourage everyone to invest in an umbrella policy.
We are happy to do a quick insurance review to insure you are covered in the event of a loss. Contact us today and let’s get started!
Choosing the right insurance agent is one of the most important decisions you will make. The Turner Agency, Inc. is a local Trusted Choice® independent insurance agency headquartered in Greenville, South Carolina. Serving the Upstate of South Carolina and beyond since 1962, we offer a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs for your business, homes, automobiles, recreational vehicles, secondary homes, and more.
The information in this article was obtained from various sources and is not all inclusive regarding the subject matter. This content is offered for educational purposes only.
