Hippo 2022 Homeowner Preparedness Report

Inflation and Supply Chain Shortages May Be Holding Homeowners Back From Critical Home Maintenance

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