Hippo 2022 Homeowner Preparedness Report: Inflation and Supply Chain Shortages May Be Holding Homeowners Back From Critical Home Maintenance
June 13 2022 - 11:00AM
Business Wire
Hippo’s report reveals the biggest external
pressures impacting homeowners today
Hippo (NYSE: HIPO), the home insurance group focused on
proactive protection, today announced findings from its 2022
Homeowner Preparedness Report, revealing the effect of today’s
economic climate on homeowners as they deal with the
responsibilities that come with owning a home.
According to the national survey of nearly 2,000 U.S. homeowners
and renters, owning a home is still a critical part of achieving
their life goals, but it may come at a cost for those who lack a
clear understanding of homeownership responsibilities. With
national inflation rates reaching a high of 8.5 percent already
this year, homeowners today have been more hesitant than in
previous years to complete important home maintenance projects,
with more than half of first-time homeowners (51%) putting them off
due to inflation and price increases, and just one in five
homeowners (20%) setting aside money or creating a budget to pay
for home upgrades or maintenance.
In addition to heightened financial pressures, nearly a third of
homeowners (31%) surveyed say they have experienced unexpected
repairs to their home in the past year that were caused by severe
weather or climate-related issues. With growing financial and
climate uncertainty, establishing a preventative home care routine
for homeowners to tackle smaller issues before they become costly
repairs is more important than ever.
“As homeowners navigate their daily responsibilities, proactive
home maintenance shouldn’t be an afterthought. Instead, it should
be met with a sense of confidence and accomplishment in protecting
what many Americans consider their most important financial asset,”
said Rick McCathron, CEO of Hippo. “There’s no denying there are an
increasing number of external factors affecting homeowners today.
At Hippo Insurance Services, we review policies annually to ensure
customers have the right amount of coverage within the current
economic environment, and partner with homeowners to proactively
protect their homes by offering them the tools they need to
succeed.”
Report Key Findings:
For homeowners, owning a home remains critical to obtaining
the American dream
Despite repair needs and external pressures, homeowners maintain
their joy of homeownership and view it to be a key to
happiness.
- 70% of homeowners find homeownership to be an important part of
the American dream; with nearly three-quarters (74%) agreeing it is
a key to happiness
- Two-thirds of renters (66%) who are likely to purchase a home
in the next year agree homeownership is a key to happiness
- Nearly half of younger homeowners (Gen Z and Millennial) (46%)
are driven by their desire to become a homeowner and the vast
majority (66%) agree homeownership is an important part of the
American dream
- Nearly all homeowners (90%) report a sense of happiness when it
comes to owning their home, compared to just one-third of renters
(31%) who feel a sense of happiness when it comes to renting their
home
Homeowners have big dreams of wanting to take on more
responsibility, yet a lack of education stands in the way
Although eager to stay on top of home maintenance, one in three
homeowners (31%) put off repairs or upgrades, mainly due to limited
knowledge and time.
- Nearly all of homeowners (94%) say they would rather take
action on smaller repairs now to save big on costs later—especially
first-time homeowners
- However, one-third of homeowners (31%) wait until something
breaks in their home, and of those homeowners, 28% say they wait
because of a lack of knowledge around home maintenance, while 27%
say they don’t have time to regularly check that things are
working
- Three in five homeowners (60%) have paid an average of nearly
$4,000 in unexpected repairs in the past year
- Among homeowners, just 20% say they have a budget or regularly
set aside money for home maintenance
External pressures bring about new challenges for homeowners
when it comes to responsible home care and maintenance
For first-time and recent homeowners alike, inflation and supply
chain issues could be getting in the way of their home care, while
all homeowners face climate-related pressures.
- Two in five homeowners (43%) have not moved forward with or
planned home maintenance or improvement projects due to inflation
- More than half of first-time homeowners (51%) say inflation and
price increases have kept them from doing planned home maintenance
or improvements over the past few months
- More than one-third of homeowners (39%) say supply chain issues
and shortages have hindered their planned home maintenance projects
- Nearly half of new homeowners (47%), those who purchased their
home post-pandemic (after 2020), cite supply chain issues and
shortages hindering their home project plans
- One in three homeowners (31%) have experienced damage to their
home caused by severe weather or climate-related issues
Owning a home has long been part of the American dream and as
seen through the report results, continues to be today for many
aspiring and current homeowners. As homeowners face new challenges
in proactively protecting their homes, having a partner in their
home’s protection is essential. Hippo takes a proactive approach to
homeownership by offering services and tools focused on
preventative care that help customers reduce risks, including smart
home devices and preventive home maintenance support, along with
seasonal home care tips and advice. Hippo provides a level of
support and care that helps homeowners to live their best lives in
their homes.
To learn more about the report and findings, please visit the
2022 Homeowner Preparedness Report here.
Methodology
This Ipsos poll was conducted April 29 to May 1, 2022, on behalf
of Hippo Insurance Services, using the probability-based
KnowledgePanel®. This starting sample for this poll is a nationally
representative probability sample of 2,104 adults age 18 or older.
To qualify for the survey, respondents must own or rent the home
they live in (n=1,915).
The study was conducted in English. The data were weighted to
adjust for gender by age, race/ethnicity, education, Census region,
metropolitan status, household income, and party identification.
The demographic benchmarks came from the 2021 Current Population
Survey (CPS) from the U.S. Census Bureau.
About Hippo
Hippo Insurance Services offers a different kind of home
insurance, built from the ground up to provide a new standard of
care and protection for homeowners. Our goal is to make homes safer
and better protected so customers spend less time worrying about
the burdens of homeownership and more time enjoying their homes and
the life within. Harnessing real-time data, smart home technology,
and a growing suite of home services, we are creating the first
integrated home protection platform. Hippo is headquartered in Palo
Alto, California with offices in Austin and Dallas, Texas and
insurance products available to more than 80 percent of U.S.
homeowners in 38 states. Hippo Insurance Services is a licensed
property casualty insurance agent with products underwritten by
various insurance companies. For more information, including
licensing information, visit http://www.hippo.com.
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Hippo Courtney Klosterman press@hippo.com
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