With home purchases declining, many homeowners plan renovations
WORCESTER, Mass., March 2, 2023 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today released its 2023 Home Buying and Renovation Report, which provides insights into recent home buying trends and plans for renovations in the new year. The Hanover commissioned The Harris Poll to conduct the research, which found higher home prices and interest rates are slowing home sales and home renovations are on the rise.
Notable findings uncovered in the research include:
- Higher home and interest costs are slowing home purchases – Sixty-nine percent of respondents looking to purchase a home in 2022 were impacted by higher home prices and interest rates. Twenty-eight percent of the respondents looking to purchase a home in 2022 decided to stay in their current living situation; this could impact agents who leverage home moving events as a source of lead business generation. Of those who planned to purchase a home in 2022, only 9% of respondents with incomes over $100K opted to rent instead, compared to 21% of respondents with incomes under $100K.
- Homeowners are staying put and planning renovations – Sixty-one percent of U.S. homeowners are planning renovations to their homes in 2023, with one in four (25%) planning major renovations. Forty-one percent of U.S. homeowners planning renovations expect to spend over $50K and more than half of those respondents have a household income over $100K. Millennials were impacted most by the housing market, and are more likely to make renovations over the next 12 months.
- One-third of consumers don't recognize they need to inform their insurance company about a renovation - One-third of U.S. homeowners planning major renovations in the next year (34%) do not plan to or do not know they need to tell their insurance company/agent. This is an 8% increase from last year, highlighting an opportunity for independent agents to proactively reach out to clients to educate them on the importance of updated coverage in case of a claim.
"With homeowners staying in their homes longer due to real estate market conditions, we are seeing more renovations, which increase home values and serve as conversation starters for insurance agents and customers," said Richard W. Lavey, president of Hanover Agency Markets at The Hanover. "These trends should prompt agents to talk with their customers to ensure their homeowners' policies reflect the true value of their home after a renovation, and that their policies protect the investments they have made to their home. These conversations can help create a strong customer experience that reminds customers of the value their agent provides."
Independent insurance agents can help customers ensure their homes are properly protected. Many home updates should serve as triggers for homeowners to contact their insurance agent. To help ensure your home is properly covered, find a local independent agent and get a quote today.
To see the 2023 Home Buying and Renovation Report and homeowner renovation considerations please click here.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Survey Method
This survey was conducted online within the United States by The Harris Poll on behalf of Hanover Insurance from November 10-14, 2022 among 2,064 U.S. adults ages 18+ among whom 1,444 are homeowners. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.8 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Kyle Tildsley at ktildsley@hanover.com.
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. For more information about The Hanover visit our website at www.hanover.com.
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SOURCE The Hanover Insurance Group, Inc.
