TheZebra.com Finds 40% of Homeowners Can’t Afford a $5,000 Emergency, Exposing Gaps in Disaster Preparedness

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeBusiness Wire News ReleasesPMN Press ReleasesThis section is The content in this section is supplied by Business Wire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content. by Business Wire TheZebra.com Finds 40% of Homeowners Can't Afford a $5,000 Emergency, Exposing Gaps in Disaster PreparednessAuthor of the article:THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountLeading 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 recoveryAUSTIN, Texas — TheZebra.com (“The Zebra”), 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.This advertisement has not loaded yet, but your article continues below.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.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againDrawing 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.This advertisement has not loaded yet, but your article continues below.“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/state-of-insurance/home/2026-natural-disasters/About TheZebra.com: TheZebra.com is the trusted partner for American insurance customers. People turn to The Zebra for easy-to-use services and tools and friendly, licensed advisors to get the insurance they need in a way that works for them. This ongoing relationship goes beyond a single transaction. For over 10 years, The Zebra has helped people across the country by providing guidance and solutions for their insurance needs. In today’s digital world, The Zebra’s customer-centered approach offers people the choices they want and simplicity they need.View source version on businesswire.com: Caliber Corporate AdvisersThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.