MULTILINE
Remodeling boom builds opportunities for agents Homeowners who are upgrading their properties must make sure their coverage is up to date, while contractors have their own set of needs that could use some help from an advisor.
78%
of residential contractors believe materials will be more expensive in 2022
Two-thirds
By Cathy Allocco and Sarah Jacobs
W
ith soaring home prices and shrinking inventory across the country, many Americans have opted to invest in remodeling their current homes rather than selling and buying new. A new survey from Nationwide revealed multiline agents have opportunities to provide needed counsel to both homeowners planning or undergoing renovations and the residential contractors helping them with the work. Nationwide’s latest Agency Forward survey revealed that 77% of homeowners currently updating their homes have future remodeling plans this year and 71% expect to proceed with those plans despite higher costs, delayed timelines and limited material availability brought on by today’s inflation and supply chain obstacles. Meanwhile, half of the residential contractors serving homeowners’ renovation needs say it has been difficult to keep up. Most are making changes to their businesses to compete in today’s market, 42
(or more) worry it will be difficult to find materials in stock or the materials they order will be delayed
57%
expect difficulty recruiting new workers
SOURCE: Nationwide
including expanding their services for customers and taking steps to hire and retain workers.
Most homeowners don’t weigh insurance needs when updating their homes
Homeowners are largely focused on voluntary interior remodels aimed at repairing wear and tear, making their homes more enjoyable or refreshing something outdated. They’re also investing significantly in their remodels, but not to increase resale value down the line. In fact, four in 10 say they would not consider selling their homes at all after their projects are complete.
InsuranceNewsNet Magazine » August 2022
What is alarming to us is that the survey found few consumers consider whether their homeowners’ insurance policies include adequate limits to cover the upgrades should an accident occur. This is a significant gap agents can help them address. With inflation and supply chain disruptions driving up claims costs across the country, it’s important for agents to check in with homeowner clients to ensure their exciting remodel doesn’t turn into a future headache. A few topics to emphasize during check-ins with homeowners:
