A new report revealed 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, according to tech-native insurance group Hippo Holdings.

The third annual Extreme Weather Report, based on a survey of 1,047 homeowners across the US, also revealed that 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.

Nearly 25% 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.

“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 financial strain of home damage from a hurricane, flood, or hailstorm extends beyond emergency repairs, Hippo found.

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.

Nearly 60% of those surveyed experienced weather-related home damage in the past three years, with half paying out of pocket for it.

The damage wasn’t cheap: 21% paid $2,000 or more, and 9% paid $5,000 or more.

The report found that of the homeowners who experienced damage, 16% delayed contributions to savings or retirement because of it.

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, the report found.

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.

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.

Homeowners in the South and the Midwest were most concerned about future weather damage.

Together, the insurance group said 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.”