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.
CONTACTS:
|
|
Emily P. Trevallion
|
Kyle
Tildsley
|
etrevallion@hanover.com
|
ktildsley@hanover.com
|
508-855-3263
|
508-855-3287
|
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.