Remodeling Reaches Record Levels in July, But Shows Bad News AlsoSeptember 20th, 2011 by DWM Magazine
BuildFax unveiled its BuildFax Remodeling Index (BFRI) for July 2011 and it shows that remodeling activity reached another record high during the month. However, the data also indicates that as consumers are putting more discretionary income into their homes, there are now a record number of under-insured properties.
The latest BFRI shows that July 2011 became the month with the highest level of remodeling activity since the index was introduced in 2004. During these historically difficult economic times there has been an upswing in the sales of building materials and the number of renovations greater than $10,000. These factors, and the fact that many consumers have not increased the insurance on their homes to account for the remodeling, put many homes at risk as they are not carrying the proper level of insurance for the new, true value of their homes.
“This remodeling boom is leaving many of these properties under-insured, as the value of these renovations are often not being captured by the homeowners’ insurance companies,” says Joe Emison, BuildFax.