NORWALK, Conn.–(BUSINESS WIRE)–Many American homeowners simply are not prepared for the unexpected cost of a home emergency. This lack of preparedness is further compounded by the fact that many American homeowners do not understand what their homeowners insurance covers – or doesn’t cover. Unfortunately, this means far too many homeowners would encounter a major financial strain if faced with a home repair not covered by their insurance, such as a break in the water pipes on their property.
The survey found that many American homeowners aren’t financially prepared for a home repair emergency. A third of homeowners (32 percent) have only $1,000 or less set aside for home repairs, while an additional 18 percent reported having no savings set aside for a repair emergency. And the findings were even more concerning for homeowners with more limited financial means. Of those homeowners with household incomes of under $50,000 a year, 57 percent reported having $500 or less or no funds at all set aside for a home repair emergency.