Extreme weather damage is leaving homeowners with long-term household debt

SAN JOSE, Calif., Oct 6, 2026 — Hippo Holdings released its third annual 2026 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 2 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, helping homeowners understand their coverage, prevent avoidable damage and prepare financially before severe weather strikes.”

The financial impact reaches beyond the repair bill

The financial strain extends beyond emergency repairs. Cost is the largest barrier to investing in protective home upgrades for the second year in a row, 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.

Confusion about insurance coverage is compounding the risk. 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 earlier

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 year. 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.

“The financial impact of extreme weather does not end when the skies clear,” McCathron continued. “For many homeowners, the consequences can last for years, draining savings, disrupting long-term financial plans and making it harder to prepare for the next event. Insurance must do more than respond after damage occurs. We need to help homeowners understand their coverage, strengthen their homes and reduce their financial risk before the next storm hits.”

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.