New study reveals COVID-19 impact on U.S. homeowners
Among other things, there has been a dramatic increase in sales for smart home security devices since the onset of the pandemic.
The long-term effects of the pandemic on society and the economy simply won’t be known or completely understood for quite some time. However, one thing is for certain: The coronavirus pandemic has changed our daily lives. COVID-19 has turned our homes into personal offices, schools and entertainment hubs.
A recent survey of 1,000 U.S. homeowners, conducted by Hippo Insurance and SimpliSafe, reveals the pandemic’s impact on how homeowners across the country are feeling about this newfound homelife.
What we discovered isn’t surprising: COVID has had a dramatic impact on all of our lives and altered our expectations. Homeowners, now more than ever, are paying closer attention to their residences.
COVID-19 changed behaviors
Americans are, in a word, anxious. According to the study, most Americans (78%) feel a deep lack of security concerning their current situation while over a third (39%) are far more insecure about their financial situation than they were at the beginning of the year. Added to this is the heavy strain many families are experiencing while attempting to hold a job, homeschool, exercise, and keep their children entertained and engaged.
And with so many of us staying at home for work or school, the comfort and safety of our homes has become increasingly important. More than half of homeowners in the U.S. (55%) say the importance of protecting the financial value of their home is more pressing today than when they first bought their house. The study also revealed two in five American homeowners (42%) indicate they will spend more time at home compared to last year, even when economies reopen following the pandemic.
With all this excess time spent at home, it makes sense that 57% of homeowners prioritized home improvement during the first three months of the COVID-19 crisis and continue to place an emphasis on making their homes a place where they want to stay.
And why shouldn’t they? We focus on our own health, the health of our pets, and our cars. It makes sense that our homes should also be on that list, especially when they can yield long-term financial benefits. Consider that a one-dollar investment in prevention can save $100 in unexpected damages. Early detection of a leak from a smart water sensor can save a homeowner from filing an insurance claim that may run in the tens of thousands of dollars.
As homeowners continue to prioritize the home, it makes sense that there has been a dramatic increase in sales for smart home security devices since the onset of the pandemic. Residential security remains at the forefront of the mind for many consumers, according to a new Parks Associates report commissioned by the Electronic Security Association (ESA), and SimpliSafe has seen similar results with demand surging as much as 70% in the wake of the pandemic.
Data from Hippo reveals several other ways that COVID-19 has affected homeownership:
- Increased frequency of home insurance claims: As more people stay home for longer periods of time, there is more wear and tear particularly on washer/dryers, appliances, electronics, and water pipes due to heavier usage.
- 1 in 3 households have needed home repairs during the pandemic: This is a troubling number considering 1 in 4 American households say they can’t afford to repair or replace broken appliances.
- Severity of home insurance claims is down: Americans being at home more often means they’re identifying and resolving home repair issues faster.
While families are trying to adjust to this “new normal,” homelife is showing signs of a permanent future. Data from SimpliSafe showed a 50% decrease in the number of people who put their systems in away mode from March to April. By the end of June, away mode usage had only risen 21% from the lowest point in April. This decision to stay home more often than before is further corroborated by the CDC with about 74% of people nationwide reporting they would feel unsafe if U.S. coronavirus restrictions were lifted.
Industry predictions
A smart home will provide homeowners with knowledge that can ultimately lead to a more prosperous homelife. As more devices are connected to the Internet, the connectivity of these “IoT” or smart devices will provide extensive information about the home to maximize not only efficiency but also protection.
Today, this already includes optional alerts for who is coming and going, which appliances are draining electricity when they’re not being used, and if the temperature in your house has dropped and could be an early warning of potential water damage.
Cross-sector partnerships from real estate to smart home to home mortgage to home insurance can create even more unique consumer offerings. A home with integrated smart devices and homeowners insurance provides more opportunities for safety, cost-savings, and peace of mind. And, homeowners looking for a new homeowners policy will ultimately benefit from a seamless, streamlined, cost-effective experience.
Safe, protected and healthy
There is a good chance that history will look back at this time as a pivotal moment in how our country has fundamentally changed the way we work, learn, stay healthy and fit, and the way we socialize. What we do know right now is that people are looking to alleviate stress and protect themselves, their families, and their homes.
As we spend more time in our homes, homeownership should not add to our stress. How we maintain it to avoid costly repairs to how we protect it from dangers should be informed and worry-free. This peace of mind can be provided through partnerships by those who are part of the home-owning experience.
Yuval Harry is vice president of Partnerships at Hippo, and Matt Wolf is director of partnerships at SimpliSafe.
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