Final answer:
Each remodeling project may need to be considered as a separate substantial improvement depending on local building codes and regulations. Mrs. Murphy should check with local authorities on how to proceed with her home remodeling projects.
Step-by-step explanation:
When considering home remodeling projects like the ones Mrs. Murphy has undertaken, it is important to assess if each project is a substantial improvement on its own merit. Typically, in building codes and regulations context, substantial improvement may need to be evaluated for each separate permit application especially if there could be cumulative cost implications that might affect insurance, taxes, and building code compliance. However, local building codes may vary, and some might allow multiple projects to be considered as a single substantial improvement if they are closely related or concurrent. In Mrs. Murphy's case, checking with the local building authority for guidelines on how to proceed with her two remodeling projects – one for the living room and kitchen, and another for three bedrooms and two bathrooms – would be the best course of action.