Another Home Insurance Crisis Brewing?
Homeowners delaying major repair work — or doing the work themselves instead of hiring professional tradesmen
Homeowners are either postponing important maintenance on their properties or doing the work themselves, all because it is too expensive to do otherwise, according to a new survey of 1,000 owners.
The delays are quietly putting their homes and their values in danger, perhaps ushering in a new era of risk. Guardian Service, a company that helps homeowners shop for insurance coverage, calls it a “silent insurance crisis.”
The survey found:
- Nearly three out of every four owners polled are putting off renovations or repairs because of economic uncertainty;
- Nearly a third said they were willing to wait another two years if necessary to make major upgrades to things like leaky roofs and outdated electrical systems; and
- About one in eight are deferring such projects indefinitely.
Home improvement budgets have been sliced, too, the pollsters found — on average by 42%. And when it comes to saving money, nearly two-thirds of homeowner respondents said they did the work themselves rather than hiring an expensive professional tradesman.
“DIY fixes aren’t a sign of resilience,” Guardian Services’ Kara Credle told National Mortgage Professional. “They’re a warning sign. With 62% of homeowners tackling critical repairs themselves, not by choice but necessity, it’s clear financial pressure is forcing risky workarounds that could cost more down the line.”
Another revealing finding: Nearly one in four homeowners admitted they’ve avoided filing an insurance claim because they were afraid their home’s condition might trigger an inspection or even a denial — or worse, higher insurance premiums.
Yet, one in five respondents said they were not aware that putting off repairs could negatively impact their property’s value or insurability. But for some, the consequences are already hitting home: some 13% said they’ve had trouble renewing their coverage, while 11% were charged higher premiums because of damage or outdated features.
“The rising cost of living is affecting more than groceries and gas. It’s also impacting how Americans care for their homes,” Guardian Services’ report states. “With the majority delaying needed upgrades, and many unaware of the insurance implications, households may be risking more than they realize.”
Here, a little knowledge would go a long way, the company says. People need to know that some improvements like a new roof or safety-focused upgrades could actually lower their premiums, thereby reducing overall costs.