From Renewed Commitments to DIY Home
Maintenance to Purchasing Flood Insurance, U.S. Homeowners Embrace
Proactive Strategies to Protect Their Investment
PALO
ALTO, Calif., Jan. 8, 2025
/PRNewswire/ -- Hippo (NYSE: HIPO), the home insurance group
focused on proactive home protection, today released findings from
its third annual Housepower Report. The national survey of over
2,000 U.S. homeowners revealed the creative steps homeowners are
taking to protect their homes in 2025.
"In 2024, when faced with unexpected repairs, many homeowners
shelled out high out-of-pocket costs to manage their homes," said
Hippo President and CEO Rick
McCathron. "We understand the importance of preventative
care and are here to help homeowners confidently protect their
homes, and in turn, their primary financial investment, from
offering insurance coverage tailored to their needs to providing
personalized maintenance advice in the Hippo Home app all year
long."
Findings from the 2024 Housepower Report Include:
Unexpected Repair Costs Soared in 2024
In 2024, nearly
half (46%) of homeowners spent more than $5,000 on unexpected repairs - an increase from
36% in 2023. The most common home repairs included water damage
and/or flooding, roof issues, and door or window problems.
Over 83% of homeowners reported encountering unexpected home
repairs this year, nearly doubling from 46% in 2023. These
surprises impacted homeowners' feelings of financial stability,
with 47% indicating that unexpected repairs strained their
budgets.
These unexpected issues come as many homeowners grapple with
high mortgage rates and living costs, signaling the growing
importance of preventative care to help reduce financial
stress.
Homeowner Priorities for 2025
The house itself is
regarded as the primary financial asset for U.S. households,
according data from the Survey of Consumer Finances. Data
from the Housepower Report shows how homeowners plan to protect
their investment in 2025:
- Emergency Plans: 29% said emergency planning should be a
top priority in 2024. Building on this trend, nearly half (47%) are
creating or updating their own emergency plans in 2025.
- Insurance Reviews: In 2024, nearly half (46%) said home
insurance and protection plans became more important to them. Now
42% say they'll be revisiting their home insurance coverage in
2025, while 31% have or will purchase optional coverage, such as
flood insurance.
- DIY Projects: In 2025, 55% plan to do more DIY home
maintenance to help save on household costs. Taking on DIY projects
could also allow more financial flexibility for homeowners to
invest in home upgrades or purchase additional insurance
coverage.
- Energy Efficiency: 59% identified efficiency and
sustainability as a priority in 2024. Steps toward sustainability
and efficiency could include home upgrades like installing smart
thermostats, improving insulation, or sealing air leaks.
Home Maintenance Motivations: Balancing Costs and
ROI
Preventative home maintenance is another critical
strategy for homeowners to protect their financial investment. In
2024, 64% of homeowners said they prioritized home maintenance to
help preserve their home's overall condition, while 46% did so to
improve their home's return on investment (ROI), and 45% did so to
help prevent costly repairs.
Yet, nearly a quarter of homeowners spent less than $1,000 on proactive seasonal maintenance in 2024,
significantly less than the $5,000 or
more that nearly half (46%) of homeowners spent on unexpected
repairs.
Homeowner Regrets Rise, Again
A striking 73% of
homeowners reported having regrets about their home purchase in
2024, up from 63% in 2023, and nearly on par with the 78% of
homeowners who had regrets about their home purchase in
2022.
The top homeowner regrets of 2024 included:
- Compromising on desired features (42%)
- Paying a mortgage rate that is higher than they can comfortably
afford (34%)
- Underestimating unexpected repairs (29%)
These homeowner regrets are fueling future plans, with 59%
considering moving in 2025 to better align with their financial and
personal goals.
Weather Concerns Steadily Grow
Data from the
Housepower Report revealed that 28% of homeowners expressed concern
about extreme weather preparedness in 2024, up from 25% in 2023. Of
the weather challenges impacting their homes in 2024, homeowners
reported heightened flood risk (42%), wildfire risk (35%), strong
winds or tornadoes (30%), and hailstorms (29%).
Weather-related challenges are expected to fuel increased
importance of home insurance and protection plans for homeowners in
2025. As of November 2024, the U.S.
had experienced 24 billion-dollar
climate and weather-related disaster events, according to the
National Oceanic and Atmospheric Administration (NOAA).
Looking Ahead: Proactive Protection from Homeowners
Hippo helps homeowners navigate homeownership with confidence
through protection plans and proactive tools, offering personalized
maintenance checklists, home health insights, and home improvement
and coverage recommendations available in the Hippo Home app.
Company Resources:
- Housepower Report: Insights into the homeowner experience in
2024, plus trends and projections for homeownership in 2025.
- Housepower Guide: Homeowner tips and seasonal checklists
informed by data from this year's Housepower Report.
- Blog: Data-driven insights, company updates, and the latest
trends shaping the future of home owning and building.
- Learn Center: Homeowner guides to simplify insurance for
everything in the home and around it.
About Hippo
Hippo is protecting the joy of
homeownership, helping to safeguard customers' most important
financial asset by harnessing the power of real-time data, smart
home technology, and a growing suite of home services to deliver
proactive home protection.
Hippo Holdings Inc. operating subsidiaries include Hippo
Insurance Services, Hippo Home Care, Hippo Builder Insurance Agency
LLC, Spinnaker Insurance Company, Spinnaker Specialty Insurance
Company, and Wingsail Insurance Company. Hippo Insurance Services
and Hippo Builder Insurance Agency are licensed property casualty
insurance agencies with products underwritten by various affiliated
and unaffiliated insurance companies. For more information,
including licensing details, visit http://www.hippo.com.
Methodology
The 2024 Housepower Report survey was
conducted by SurveyMonkey Audience for Hippo Insurance
Services. The survey was fielded between November 11, 2024 and November 13, 2024 with results based on over
2,000 completed surveys.
Respondents were screened to be residents of the United States, over 18 years of age, and
owners of a single-family home, a condo, or a townhome. Data is
unweighted, and the margin of error is approximately +/-2% for the
overall sample with a 95% confidence level.
Media Contact
Courtney Klosterman
Director of Communications
cklosterman@hippo.com
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SOURCE Hippo Holdings Inc.
