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.
Hippo Logo (PRNewsfoto/Hippo Holdings Inc.)
"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 bySurveyMonkey 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.
