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Homeowners are making renovations without updating insurance policies

Around one-third of homeowners said they didn’t know they needed to update their insurance coverage after a renovation.

When policyholders renovate their homes, they boost the property’s value. By not updating their policy, homeowners could find their current coverage inadequate should they suffer a major loss event. The Hanover noted that when renovation occur, it often requires an update to the “Coverage A” amount listed on a policy. (Credit: A_stockphoto/Shutterstock.com) When policyholders renovate their homes, they boost the property’s value. By not updating their policy, homeowners could find their current coverage inadequate should they suffer a major loss event. The Hanover noted that when a renovation occurs, it often requires an update to the “Coverage A” amount listed on a policy. (Credit: A_stockphoto/Shutterstock.com)

During the coming year, 61% of U.S. home insurance policyholders are planning renovations, but 34% of those undertaking projects said they don’t plan to or didn’t think they needed to tell their home insurance company about the projects, according to a survey by The Hanover.

This past year fewer homeowners (26%) said they didn’t know they should contact their insurance agent when making home renovations. The Hanover noted independent agents should regularly inform policyholders of when they should contact them to update a policy.

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Steve Hallo

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

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