5 of Homeowners’ Biggest Fears (and How To Address Them)
Homeownership is often seen as a major life accomplishment and a hallmark of the American dream. While there are plenty of benefits, such as stability, investment possibilities, lifestyle choices and more, there are downsides to owning a home.
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Homeowners face mounting anxieties, and steering through the challenges isn’t easy. Here are some of the top fears of homeowners, according to U.S. News & World Report’s 2024 U.S. Homeowner Survey Report, and how to address them.
Also see five ways to lower the cost of homeownership.
Homeowners Insurance Costs
The price of homeowners insurance is a growing concern for many. As rates continue to soar, 82% of homeowners want the government to cap premiums, per the survey. However, there are ways to combat the surging costs.
“Start by shopping around — different insurance companies assess risk differently so that you may find a better rate with another provider,” said Yawar Charlie, a real estate director and the director of estates with Christie’s International Real Estate.
Charlie also recommending bundling insurance where you can. “Combining policies, like home and auto, can lead to significant discounts,” he said.
It’s also important to be aware of the area and how that could affect insurance costs. “For buyers, expect insurance to be a bigger chunk of your monthly expenses in areas prone to natural disasters or high crime rates. Be proactive — ask about rates before you close on a home to avoid surprises,” Charlie said.
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Getting Dropped by an Insurance Company
According to the survey, 20% of homeowners had received letters from their insurance company threatening to drop them unless an issue was resolved.
“Insurance companies don’t just drop homeowners for fun — it often comes down to the risk associated with your property or region,” Charlie explained. “This could mean repeated claims, lack of maintenance or being in an area prone to disasters.”
But there are ways to prevent this. “To avoid this, keep up with home maintenance and consider making upgrades that reduce risk, like fire-resistant roofing or flood barriers,” Charlie said. “If you get dropped, don’t panic — there are often state-backed insurance options to explore while you shop for a new provider.”
Property Damage and Natural Disasters
House fires and natural disasters are top stressors for homeowners, and Charlie explained how to approach them.
“Start by knowing your risks — does your area flood? Are you in an earthquake zone? Then, ensure your insurance covers these scenarios; standard policies don’t usually include flood or earthquake coverage, so you may need an add-on,” he said. “Finally, invest in home improvements like reinforced windows, sump pumps or drainage systems to protect your property. The peace of mind is worth it.”
Climate Change
Homeowners take on more costly risks as climate change heats up and causes an increase in extreme weather events. From rising sea levels to wildfires, the impacts can hit close to home, and it can be pricey. Cleaning up disasters isn’t cheap.
“Know your vulnerability,” Charlie said. “Research how climate change is affecting your region and prepare accordingly.”
Also think about upgrades that can be done to your home now to avoid problems later. “Next, consider energy-efficient upgrades that not only help the planet but can also reduce costs — think solar panels, better insulation or water-saving landscaping. These changes can protect your home while increasing its value. It’s a win-win,” Charlie said.
Financial Fears and Hidden Costs
Another big fear homeowners encounter is the financial impact. Owning a home is a great investment. However, it can be a massive financial blow if you’re unprepared for the hidden costs many don’t consider, such as heating problems, electrical issues, roof repairs, water damage and more.
According to Angi’s State of Home Spending report, homeowners spent an average of $13,667 on emergency repairs, maintenance and improvements last year. That can be a major hit to your wallet.
“To address these fears, the key is budgeting,” Charlie explained. “Building a healthy emergency fund — about 1% of your home’s value annually — is a good rule of thumb for maintenance. Consider a home warranty for additional peace of mind, but weigh the cost carefully to ensure it’s worth it.”
It’s also important to be aware of these costs before buying, when possible. “For buyers, ask your agent to break down all potential expenses in your area so you’re not caught off guard. Owning a home isn’t just about the mortgage — it’s about being prepared for the journey,” Charlie said.
There are many factors to consider when buying a home, including escalating potential problems that could cause financial setbacks if you’re not ready for them.
“Whether it’s navigating the rising costs of homeowner’s insurance or dealing with the hidden expenses of owning a home, I’ve seen how these challenges can keep people up at night,” Charlie explained. “With the right preparation and mindset, these fears can be addressed head-on.”
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This article originally appeared on GOBankingRates.com: 5 of Homeowners’ Biggest Fears (and How To Address Them)
