New Hippo Report Reveals Homeowners are Staying Put and Taking on DIY Projects to Lower Maintenance Costs

Rhea-AI Summary

Hippo (NYSE: HIPO) announced findings from its 2023 Hippo Housepower Report, revealing that U.S. homeowners are completing DIY tasks to protect their homes amidst tight home budgets in 2024.

Insights

Financial Analyst

The survey conducted by Hippo provides insight into consumer behavior, which can have a ripple effect on the home insurance industry. Homeowners' commitment to maintaining and repairing their homes, despite economic pressures, suggests a reduced risk of insurance claims due to property neglect. This could potentially lead to lower claim expenses for home insurance companies like Hippo, improving their loss ratios and possibly reflecting positively in their financial results.

However, the increase in DIY repairs could also indicate a shift in consumer preference, which may impact the demand for professional repair services covered under home insurance policies. Insurance companies might need to adjust their offerings or pricing structures to align with this trend. Investors should monitor how Hippo and its competitors adapt to these changes in consumer behavior, as it could influence market share and profitability.

Economics Expert

From an economic standpoint, the survey highlights the resilience of homeowners during periods of financial constraint. As interest rates rise, homeowners are likely to prioritize essential maintenance over discretionary spending, which could dampen growth in related sectors such as home improvement retail. However, this self-reliance could also stimulate demand for home improvement products, benefiting retailers specializing in DIY supplies.

Long-term, if homeowners continue to prefer DIY solutions, this could lead to a structural change in the home maintenance and repair market. It's essential to consider how this might affect employment in the home repair services industry and the broader economic implications of a potential shift in consumer spending patterns.

Industry Analyst

The findings of the Hippo Housepower Report are indicative of a broader trend in the home insurance sector. Insurers might need to innovate, offering new products or services catering to the DIY market. This could include partnerships with hardware stores or providing digital tools to assist homeowners. Such strategic moves could differentiate a company in a competitive market.

Investors should look at how companies with exposure to the home insurance and home improvement sectors are performing relative to these trends. Companies that can capitalize on the DIY movement, either through tailored insurance products or by offering home maintenance solutions, may gain a competitive edge. It's crucial to analyze how these strategies are reflected in the companies' operational metrics and market positioning.

PALO ALTO, Calif., Dec. 19, 2023 /PRNewswire/ -- Hippo (NYSE: HIPO), the home insurance group focused on proactive home protection, today announced findings from its 2023 Hippo Housepower Report, a national survey of over 2,245 U.S. homeowners revealing that current financial and economic conditions haven't stopped homeowners from completing home maintenance and repairs to protect their homes. In fact, completing DIY tasks is now the most popular way to stay ahead of managing responsibilities as home budgets remain tight in 2024, according to the survey.

"This past year's low housing inventory and high interest rates have homeowners being cautious about the costs of homeownership, leading them to prioritize budgets and find new ways to prevent small problems from becoming big issues," said Rick McCathron, Hippo President and CEO. "Looking ahead, nearly one-third of homeowners who participated in our survey said they would advise their peers to prioritize scheduling and budgeting for regular, proactive home maintenance and emergencies in 2024."

Hippo offers homeowners DIY tools and guidance from certified home experts to build their confidence and take a more active role in their property's year-around protection. In the Hippo Home mobile app, homeowners can complete home health assessments, receive personalized checklists of preventive maintenance tasks, and receive ongoing access to home experts for advice on how to address issues.

Key takeaways from the report include:

Homeowners are staying put instead of moving: Compared to results from the 2022 Housepower Report, responding homeowners to Hippo's 2023 survey weren't as interested in selling their current property (14% vs. 26%) or buying a second property (13% vs. 26%). Instead, homeowner priorities have shifted to home upgrades (39%), home security and safety (32%), home monitoring and other services to help prevent issues (23%). This could be a result of homeowners' biggest concerns in the past 12 months being:

• Rising inflation rates (38%)
• The impact of climate change and/or extreme weather events on their home (25%)

Homeowners are cutting back on discretionary spending: Homeowners ranked budgeting and financing (39%) as the most difficult aspect of home improvements in the past 12 months. To help manage homeownership expenses and responsibilities, respondents said they cut back on discretionary spending (32%) and made energy-efficient upgrades (27%). In the new year, increasing costs remain top of mind for many homeowners who cite their top worries for 2024 as:

• Home repair expenses (38%)
• Home insurance premiums (26%)
• Protecting their property from damage (26%)

Homeowners are addressing repairs on a tight budget: 33% of responding homeowners said they budgeted $1,000 or less for unexpected or planned repairs in the past year. To keep up with the expenses and demands of homeownership, 36% of responding homeowners said they are tackling DIY home maintenance and repairs. Yet, 27% of homeowners said they still struggle with deciding when to hire a professional over completing a task on their own.

Breaking down the most common repair issues: In the past 12 months, 46% of responding homeowners said they had something unexpected go wrong in their home. The most common home issues homeowners faced were appliance break-downs (31%), water damage (23%), and roof damage (20%). The most common home systems to break down were:

• HVAC unit (24%)
• Plumbing (21%)
• Water heater (18%)
• Refrigerator (18%)

Finding the joy in homeownership: Even when issues come up, homeowners reported feeling a sense of pride in homeownership when completing home maintenance and repair tasks (47%) and learning skills to care for their home (38%). Homeownership continues to be worthwhile because it gives them:

• Control over their living environment (43%)
• Personal pride and fulfillment (38%)
• A stable living environment for their family to create lasting memories (37%)

For help preventing maintenance issues, homeowners can download the free Hippo Home mobile app in the Apple App Store and Google Play Store. For more tips on how homeowners can take action around the home before small issues turn into bigger problems, download the Hippo Housepower Guide on the Hippo blog.

Methodology
The survey was conducted by SurveyMonkey Audience for Hippo Insurance Services. The survey was fielded between October 6, 2023, and October 7, 2023. The results are based on 2,245 completed surveys. In order to qualify, respondents were screened to be residents of the United States, over 18 years of age, and own a home. Data is unweighted, and the margin of error is approximately +/-2% for the overall sample with a 95% confidence level.

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, First Connect Insurance Services, Spinnaker Insurance Company, Spinnaker Specialty Insurance Company, and Mainsail 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, including licensing details, visit http://www.hippo.com.

Press Contact:
Courtney Klosterman
Communications Director
press@hippo.com

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SOURCE Hippo Holdings Inc.

FAQ

What did Hippo (NYSE: HIPO) announce in its 2023 Hippo Housepower Report?

Hippo (NYSE: HIPO) announced findings from its 2023 Hippo Housepower Report, revealing that U.S. homeowners are completing DIY tasks to protect their homes amidst tight home budgets in 2024.

How many U.S. homeowners were surveyed for the 2023 Hippo Housepower Report?

The 2023 Hippo Housepower Report surveyed over 2,245 U.S. homeowners.

What is the most popular way for homeowners to stay ahead of managing responsibilities according to the survey?

Completing DIY tasks is now the most popular way for homeowners to stay ahead of managing responsibilities as home budgets remain tight in 2024, according to the survey.