Renovations Rise Despite Challenges

Home renovations have increased since the start of 2021, with over half (55 per cent) of homeowners completing substantial improvements that boost home values, says a survey by Selective Insurance. This is a 25 per cent increase from a similar Selective survey conducted in December 2020, indicating a current rise in home improvements despite headlines about supply chain delays, increasing cost of materials, and labour shortages. The top three improvements include renovating a room/basement/attic, adding a new room, and adding a pool or hot tub. Selective saw similar trends among customers who operate contracting businesses. An analysis of its active commercial liability insurance policies identified a five to 10 per cent increase in residential construction payroll and an approximately 15 per cent increase in subcontracting costs year over year from 2019 through 2021. These indicators underscore continued home improvement activity well into 2021 and across the company's commercial lines footprint.