Cost of owning a home: More than a third of homeowners paid $3,000+ in surprise repairs
When it comes to the cost of homeownership, the conversation usually stops at the costs you plan for, like the down payment and the monthly mortgage. The costs that catch people off guard rarely make it into the budget, even though they’re nearly universal.
Only 8% of homeowners avoided surprise repair costs entirely last year, according to our 2026 Housepower Report. For the majority who experienced unexpected home repairs, the bill ran past $1,000.
To help you plan for these unexpected repair costs, we've broken down where that money typically goes, how those costs add to financial stress, and which fixes are worth handling yourself.
Key takeaways
- Unexpected expenses, upgrades, and rising costs affected the financial stability of 76% of homeowners last year.
- Out-of-pocket spending on unplanned repairs topped $1,000 for 64% of homeowners, while 36% paid more than $3,000.
- Staying within budget proved tough for some, with 34% of homeowners exceeding their home maintenance spending limit last year.
- Despite these financial surprises, only 32% of homeowners reported setting aside (or planning to set aside) an emergency fund specifically for home repairs.
Many expenses beyond a mortgage drive financial stress
A home is typically your largest financial asset, so when unexpected home expenses pile up, it understandably triggers significant financial stress.
More than three-quarters (76%) of homeowners say unexpected costs, upgrades, or rising prices impacted their financial stability last year. They most commonly cite utility bill fluctuations (37%) and unexpected home repairs or maintenance issues (33%).
Many U.S. households are navigating rising prices in these areas. Electric bills climbed 4% in the 12 months leading up to June 2026, outpacing overall inflation of 3.5%, while piped natural gas rose 3%. Fuel prices also swung sharply upward through the spring before easing in June.1
That provides relief at the meter, but bills are still higher than they were a year ago. This means a single cold snap or heat wave can undo a good month. And those costs tend to land hardest on people who are already financially burdened.
Our 2026 Homeowner Anxiety Report found that 40% of homeowners list finances and personal debt as one of their biggest sources of stress—more than any other area of their lives. That makes the burden of a surprise utility bill feel even bigger than its actual price tag.
While homeowners can't control energy markets or predict a burst pipe, 60% are still preparing in advance through optional homeowners insurance riders that supplement their standard policy. Among those who purchased a rider, 42% did so specifically to "feel more secure and reduce out-of-pocket risks," while 17% added it "just in case."
You may already know some ways to save energy, like turning your thermostat up a few degrees in the summer. Consider these methods, too:
- Invest in smart technology: If you're constantly turning off your appliances to save power, consider smart bulbs, plugs, or power strips. Smart plugs and bulbs can cost less than $10 each, and they automatically turn off devices when you're not using them. You can also place sensors near your hot water heaters or sinks to help catch leaks early.2
- Ask your utility company for an energy audit: Your power or water company may offer energy audits to assess your home's energy needs and identify ways to make your home more energy-efficient. If your utility company doesn't offer audits, you can reach out to a third-party auditor—look for one certified by the Residential Energy Services Network.
36% of homeowners spent more than $3,000 out of pocket on unexpected repairs last year
Between routine upkeep and sudden breakdowns, caring for a home can easily run into the thousands every year.
For the majority of homeowners (64%), that totaled more than $1,000 in out-of-pocket expenses last year, while 56% spent more than $1,000 on planned maintenance tasks.
However, it's relatively common to spend much more than that: 36% spent more than $3,000 on unexpected repairs, and 28% spent more than $3,000 on planned home maintenance.
No matter how well they plan, it's very common for homeowners to spend more than they expect. Even if they anticipated emergencies and budgeted for them, 34% of homeowners went over their home maintenance budgets.
Most commonly, these expenses went toward plumbing problems (34%), broken appliances (32%), and critical system issues such as a broken HVAC system (23%).
If you know you'll need a plumbing repair later but don't want to forget, you can use the Hippo Home app to set reminders and manage your maintenance needs in advance.
Regional trends: Pacific and Mid-Atlantic spent the most on unexpected repairs
Where you live can play a major role in what you pay, though a mix of variables is typically at work. Homeowners on the West Coast and in the Mid-Atlantic, for example, faced unexpected repairs more often and paid more for them compared to the rest of the country.
- Pacific region (Alaska, California, Hawaii, Oregon, Washington): 95% of homeowners faced unplanned repair costs last year, leaving only 5% with a $0 bill for unplanned repairs. Nearly half (49%) spent more than $3,000, including 10% who faced bills exceeding $10,000. Homeowners already have a high cost of living in states like Hawaii and California, but recent West Coast wildfires have made repair supplies and other costs even more expensive.3
- Mid-Atlantic region (New Jersey, New York, Pennsylvania): Close behind, 45% of homeowners spent more than $3,000 on unexpected repairs, including 40% who spent $3,001–$10,000, the highest concentration for that spending range nationwide.
If you live in either of these regions, treating surprise repairs as a certainty rather than a "maybe" is a good mindset. Many experts recommend budgeting at least 1% of your home's value each year to help cover any unexpected repairs. You may want to save more depending on factors like your local climate and financial situation, or your home's age and current condition.4
In the Mid-Atlantic, heavy spending in the $3,000+ range could be due to local housing age. Mid-Atlantic states have some of the oldest housing stock in the country, with states like New York showing a median home age of older than 60 years.5
Prioritizing routine inspections of aging structural systems, such as roofs, boilers, and masonry, could help catch issues early, before minor concerns turn into expensive surprises.
Paying for costly maintenance and inspections can feel nerve-racking. Doing repairs yourself is one common way to help keep costs down.
86% of homeowners are planning to DIY—here's what to watch for
Most homeowners (86%) plan to take on DIY projects this year, and saving money is far and away the main reason. More than half of homeowners cite cost savings (57%), ahead of personal satisfaction (36%) and learning a new skill (30%).
For the homeowners planning DIY work, 38% expect to spend more than $3,000 on these tasks this year, while 32% plan to spend $1,000 or less. That may feel like a large expense, but even a $3,000 DIY project often costs far less than hiring a contractor. And not all projects will cost that much. Routine, proactive upkeep can help keep homeowners’ overall maintenance costs down.
For instance, unclogging a drain professionally runs $150 to $350 on average. Doing it yourself would only cost you the equipment, a plunger or drain snake, and a few minutes.6
Here are a few examples of maintenance tasks beginners can tackle with the right tools and a few helpful videos:
- Changing HVAC or furnace filters
- Unclogging a sink, shower, or tub
- Replacing a leaking toilet fill valve
- Resetting a garbage disposal
- Painting walls and baseboards
Of course, it's important to know your limits before swinging a sledgehammer. When it comes to measuring their maintenance skills, here's where U.S. homeowners ranked themselves:
- 34% say they can complete basic projects with some confidence
- 20% have tried a few projects with limited success
- 15% have never attempted a DIY project
- 6% consider themselves highly skilled and rarely need outside help
Overly ambitious projects quickly introduce hidden costs. Our DIY Disasters Survey found that 58% of DIYers spent more than they expected on their projects due to mistakes. If a project goes sideways, hiring a professional to fix a mistake could cost more than calling one in the first place.
Mistakes involving complex systems can also lead to severe structural damage or physical injury. Always consult a licensed professional for projects that involve:
- Structural elements, including load-bearing walls and foundations
- Electrical systems and wiring
- Main plumbing lines and gas pipes
- Garage door springs and mechanisms
- Large tree removal and high-branch trimming
Keeping up with repair work doesn't have to feel like a full-time job. Knowing when to call in a pro is part of smart homeownership.
The Hippo Home app helps make proactive maintenance effortless. Build a maintenance schedule tailored to your unique home, set inspection notifications in advance, and track your DIY progress all in one place.
Methodology
Any data referencing the 2026 Housepower Survey was collected on September 22, 2025, and conducted by Centiment on behalf of Hippo Insurance Services. The results are based on 1,619 completed surveys. In order to qualify, respondents had to be residents of the United States, over 18 years of age, and homeowners. This data is census-balanced, and the margin of error is approximately ±2% for the overall sample with a 95% confidence level.
Data referencing the Homeowner Anxiety Report was conducted by Centiment for Hippo Insurance Services and fielded between April 3, 2026, and April 16, 2026. The results are based on 1,019 completed surveys. To qualify, respondents had to be screened as residents of the United States, aged 18 or older, and homeowners. This data is census-balanced, and the margin of error is approximately ±3% for the total sample at a 95% confidence level.
External sources
- U.S. Bureau of Labor Statistics. (2026, July). Consumer Price Index – June 2026 (USDL-26-1191).
- The New York Times. (2025, May). 5 Gadgets That Make It Easy to Save Energy, Water, and Money.
- The Orange County Register. (2026, April). Southern California home-repair costs surged after wildfires.
- Fannie Mae. (n.d.). How to build your maintenance and repair budget.
- National Association of Home Builders. (2026, March). Age of housing stock by state.
- ConsumerAffairs. (2025, July). How much does it cost to repair a clogged drain?
This article is for informational purposes only. The content reflects general homeowner considerations and is not professional advice. It also includes observed trends in the surveyed population, as well as additional information compiled from sources unaffiliated with Hippo. While we believe this information to be reliable, we do not guarantee its accuracy or completeness. For any insurance-related decision, please consult your licensed insurance producer. Sources cited are publicly available and referenced in October 2026.
Related articles
16 home maintenance tasks you can do in a weekend
The insurance coverage gap: 40% of homeowners are opting out of additional protection
5-year housing forecast: Why almost 1 in 3 homeowners are planning their exit
Multigenerational Homes: How Families Are Hacking the Housing Market
Hippo survey reveals energy-efficient cost savings is a top concern for homeowners
