Leading insurtech’s biannual report on the state of homeowner’s insurance reveals disconnect between homeowners’ confidence in their insurance and the financial realities of disaster recovery
AUSTIN, TEXAS – October 14, 2026 — TheZebra.com, the easiest way to compare and buy insurance, today released its 2026 State of Insurance™ | Home Report, finding that despite widespread confidence in their coverage, 40% of homeowners say they could not afford a $5,000 emergency. The financial realities of disaster recovery can be far greater: homeowners who restored their homes following a disaster spent an average of $22,100 in 2023, underscoring the gap between perceived preparedness and the potential cost of recovery.
The report finds that confidence in coverage does not always translate into preparedness. While 81% of homeowners believe they have adequate coverage for their home and belongings, and 77% believe they are covered in the event of a natural disaster, only about a third describe themselves as very or extremely prepared for one. Meanwhile, 35% believe their standard homeowners policy covers flood or earthquake damage, risks that typically require separate coverage.
Drawing on 733,436 home insurance premiums, a national survey of 2,500 homeowners and interviews with 26 homeowners who experienced catastrophic claims within the past five years, the report examines how extreme weather, insurance costs and coverage gaps affect homeowners’ ability to recover after a disaster.
“Having home insurance can give people peace of mind, but that confidence needs to be grounded in what their policy actually covers,” said David Seider, chief commercial officer at The Zebra. “When a $5,000 emergency is out of reach for 40% of homeowners, an unexpected deductible or gap in coverage can create a serious financial setback. Understanding those costs before a disaster happens is an essential part of protecting your home.”
Among surveyed homeowners, 34% had experienced damage from severe weather or a natural disaster. Their experiences underscore the financial challenges that can persist even when a claim is covered:
-
Among homeowners who filed natural disaster claims, 64% said their claims were covered by a standard homeowners policy, 10% by supplemental insurance and 10% were not covered.
-
More than a third of homeowners with covered claims reported a gap between their insurance payout and the actual cost of repairs.
-
A quarter of homeowners who filed a claim were unable to stay in their homes after the damage. Of those, only about half said insurance fully covered their temporary lodging costs.
Despite these potential gaps, 65% of homeowners have kept the same coverage since purchasing their home, and only 35% plan to shop for coverage in the coming year. Reviewing a policy regularly can help homeowners understand whether their protection still reflects their needs and current rebuilding costs.
The report encourages homeowners to prepare by understanding local weather risks, reviewing coverage and exclusions, and considering whether separate flood or earthquake insurance is appropriate. Homeowners should also check their rebuilding limits, understand their deductibles and coverage for temporary living expenses, and compare policies with attention to coverage limits and exclusions alongside premiums.
“Your home and finances can change over time, and your insurance needs can change with them,” Seider added. “A policy review is a chance to ask questions, check your rebuilding limits and understand your potential out-of-pocket costs. Taking those steps now can help you make more informed decisions before you need to file a claim.”
To view the report in full, visit https://www.thezebra.com/