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Weather damage is leaving many homeowners carrying debt, report finds

The Hippo survey of 1,047 homeowners found nearly 60% had weather related damage in the past three years, and 25% of those who paid out of pocket still had debt.

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A new report from tech-native insurer Hippo Holdings highlights how weather damage can become long-term financial strain for homeowners in the United States. Insurance Journal reports that the survey found half of homeowners paid out of pocket for weather-related home damage over the past three years, while only 22% said they feel very financially prepared for an unexpected weather repair.

Hippo’s third annual “Extreme Weather Report,” based on a survey of 1,047 homeowners across the U.S., also found that nearly 80% of homeowners are not financially prepared for an unexpected weather-related repair, either because they lack savings to cover the cost or because they cannot complete the work themselves.

The survey results show that nearly 60% of respondents experienced weather-related home damage in the past three years, and about half of those cases were paid out of pocket. Among homeowners who paid out of pocket, nearly 25% are still carrying debt, and 71% of those debt holders have carried it for at least two years.

Hippo said the damage can extend beyond the property and into homeowners’ financial futures, with Rick McCathron, its president and CEO, arguing that a single weather event can push households into years of debt. Insurance Journal adds that cost remains a major barrier to investing in protective home upgrades.

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