Extreme weather damage is leaving homeowners with long-term household debt, Hippo report finds

Among homeowners who experienced weather-related damage, 16% delayed savings or retirement contributions because of it.

Rhea-AI Summary

Hippo Holdings (HIPO) released its third annual Extreme Weather Report, examining the lasting financial effects of weather-related damage on U.S. homeowners.

The survey of 1,047 homeowners found that nearly 60% experienced weather-related home damage in the past three years, and half paid out of pocket. Of those who paid out of pocket, 22% still carry debt from the damage; among those carrying debt, 71% have carried it for at least two years. Only 22% feel very financially prepared for an unexpected weather repair. Coverage confusion also persists: 39% mistakenly believed damage was covered, and 19% of all respondents paid out of pocket as a result.

Key Figures

Survey sample: 1,047 homeowners Still carrying weather-damage debt: 22% Debt duration: 71% +2 more

Survey sample

1,047 homeowners

U.S. homeowners surveyed

Still carrying weather-damage debt

22%

Of homeowners who paid out of pocket for damage

Debt duration

71%

Of homeowners carrying weather-damage debt; at least two years

Not financially prepared

Nearly 80%

Homeowners facing an unexpected weather-related repair

Cost as a barrier

39%

Homeowners citing cost as a top barrier to protective upgrades in 2026

Key Terms

margin of error

1 terms

margin of error technical

"approximate margin of error of plus or minus 3 percentage points"

The margin of error is a measure of how much the results of a survey or estimate might differ from the true value, due to random chance. It indicates the level of uncertainty in the data, helping investors understand how much confidence to place in the results. Think of it like the wiggle room around a guess—smaller margins mean more precise estimates.

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• Third annual report shows that half of U.S. homeowners paid out of pocket for weather damage in the past three years and only 22% feel very financially prepared for an unexpected weather repair
• Nearly 80% of homeowners are not financially prepared for an unexpected weather-related repair, lacking either the savings to cover the cost or the ability to complete the work themselves 

SAN JOSE, Calif., Oct. 6, 2026 /PRNewswire/ -- Hippo Holdings (NYSE: HIPO) today released its third annual Extreme Weather Report, revealing the lasting financial consequences of weather-related home damage. Based on a survey of 1,047 homeowners across the United States, the report found that nearly a quarter of homeowners who paid out of pocket for weather damage are still carrying debt from it. Among those carrying debt, 71% have carried it for at least two years.

The report shows how the financial effects of home damage extend beyond repairs into savings, retirement contributions, and households' ability to prepare for the next unexpected expense. Released as homeowners prepare for colder weather, it examines both their readiness to protect their homes and their understanding of what insurance will cover if damage occurs.

"Protecting a home means protecting the financial future of the people inside it," said Rick McCathron, president and CEO of Hippo. "When a single weather event can push homeowners into years of debt, the damage extends far beyond the property. The insurance industry must move upstream like we've been doing at Hippo since inception, helping homeowners understand their coverage, prevent avoidable damage, and prepare before severe weather hits."

The financial impact reaches beyond the initial repair bill

The financial strain of home damage from a hurricane, flood, or hailstorm extends beyond emergency repairs. For the second year in a row, cost is the largest barrier to investing in protective home upgrades that could help mitigate damage, with 39% of homeowners citing it as a top barrier in 2026.

The report also found that nearly 60% experienced weather-related home damage in the past three years, with half of homeowners paying out of pocket for it. Twenty-two percent of those who paid out of pocket are still carrying debt from that damage.

Among homeowners who experienced damage, 16% delayed contributions to savings or retirement because of it. Nearly 80% of homeowners are not financially prepared for an unexpected weather-related repair, lacking either the savings to cover the cost or the ability to complete the work themselves. Additionally, 44% say covering the expense would be a stretch, while 34% say it would cause significant financial stress or they could not cover it.

Coverage confusion remains a widespread challenge for homeowners. Thirty-nine percent of homeowners have mistakenly believed damage was covered, and 19% of all respondents paid out of pocket as a result. More than half (55%) cannot recall their current deductible, leaving many homeowners uncertain about their financial exposure when disaster strikes.

An opportunity for insurers to help customers prepare

The report also highlights an opportunity for insurers to play a greater role in weather preparedness. Despite their expertise in property risk, insurance agents are among the two most trusted sources of advice for only 12% of homeowners, trailing local meteorologists at 65% and even friends and family at 31%.

While 85% monitor local weather alerts, just 21% reviewed their home insurance coverage as a preparedness step in the past 12 months. Together, these findings highlight an opportunity for insurers to connect weather awareness with a better understanding of coverage and practical steps to protect the home.

"Preparedness shouldn't start the day a storm is forecasted," McCathron continued. "Homeowners and insurers both have a role to play before severe weather hits — homeowners in taking preventive steps to protect their properties, and insurers in proactively reaching out to their customers before damage occurs. That's the shift our industry needs to make, and it's one we're committed to leading at Hippo."

The full 2026 Extreme Weather Report, including preparedness and budgeting guidance, is available at https://www.hippo.com/blog/extreme-weather-2026.

Methodology
Centiment conducted the survey on behalf of Hippo Insurance Services from July 13–22, 2026. Results are based on 1,047 completed surveys of U.S. homeowners over age 18. The data are census-balanced, with an approximate margin of error of plus or minus 3 percentage points at a 95% confidence level for the overall sample. Subgroup results may have larger margins of error.

About Hippo
Hippo is a technology-native insurance group that uses its carrier platform to diversify risk across both personal and commercial lines. Through the Hippo Homeowners Insurance Program, the company applies deep industry expertise and advanced underwriting to deliver proactive, tailored coverage for homeowners. Hippo Holdings Inc. subsidiaries include Hippo Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company and Wingsail Insurance Company. Hippo Insurance Services is a licensed property casualty insurance agent with products underwritten by various affiliated and unaffiliated insurance companies. For more information, please visit http://www.hippo.com.

Media Contact: 
Courtney Klosterman
press@hippo.com

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SOURCE Hippo Holdings Inc.

FAQ

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What did Hippo’s 2026 Extreme Weather Report find about homeowner debt?

Of homeowners who paid out of pocket for weather damage, 22% still carry debt from it. Among those carrying debt, 71% have carried it for at least two years. Half of homeowners paid out of pocket for weather damage in the past three years.

How was Hippo’s 2026 Extreme Weather Report survey conducted?

Centiment surveyed 1,047 U.S. homeowners over age 18 on behalf of Hippo Insurance Services from July 13–22, 2026. The data are census-balanced, with an approximate margin of error of plus or minus 3 percentage points at a 95% confidence level for the overall sample. Subgroup results may have larger margins of error.