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Owning a home has never been more expensive—and for many, the pressure is starting to show. With property taxes, insurance premiums, and maintenance costs climbing, homeowners are cutting corners where they can.
In 2025, more than 7 in 10 homeowners put off renovations, according to a survey by Guardian Service, a company that helps consumers shop for insurance policies. While budget concerns are the most common reason, fear of filing an insurance claim to help pay for the costs also plays a surprisingly large role.
But that fear can come at a high cost. Delaying repairs or avoiding claims could also reduce your insurance payout or leave you footing a much larger bill down the line. Here’s what you need to know before you put off another fix.
Why homeowners delay claims and repairs
Rising labor and material prices, inflation, and broader economic uncertainty have made it harder to afford professional renovations. For many, that means kicking the can down the road or attempting a DIY fix.
Even when homeowners might be able to cash in on their home insurance policy to help cover the costs, nearly 1 in 4 homeowners say they’ve avoided filing a home insurance claim out of concern that it might trigger an inspection that they wouldn’t be able to pass. That fear is even more common among younger homeowners, with a full third of Gen Z respondents admitting they were too nervous to file.
But delaying these types of renovations or repairs—and the claims that can help fund them—might allow small problems to spiral into structural damage. When that happens—or when an insurer finds out a major issue was never disclosed—these decisions can leave homeowners vulnerable to bigger, costlier problems later on.
The long-term consequences of avoiding claims
What starts as a minor leak or a loose shingle can turn into serious structural damage, mold, or even a full roof replacement if left unaddressed. And if your insurer determines the damage resulted from neglect, they may deny the claim entirely—leaving you to pay out of pocket for what would have been a covered issue.
While many homeowners worry that filing a claim could lead to a rate hike or policy review, avoiding claims often leads to greater expenses over time. An unrepaired problem grows costlier by the month, and the longer you wait, the harder it may be to get full coverage when you finally do need it.
What homeowners are delaying
Homeowners cut their improvement budgets by an average of 42% in 2025, according to Guardian Service. And as many as two-thirds say they’ve eliminated those budgets entirely.
With so little wiggle room, homeowners are prioritizing only the most essential fixes. Cosmetic upgrades like painting, flooring, and decor are the first to be postponed, with 48% putting them off. Kitchen and bathroom remodels are next on the chopping block, despite being two of the most value-adding projects in a home.
More concerning is the delay of critical systems and safety-related repairs. Less than a quarter of homeowners say they plan to move forward this year with window replacements, plumbing or electrical work, or roof repairs—all of which can lead to long-term damage if neglected.
Even amid record heat waves, 14% of homeowners are delaying HVAC replacements, underlining just how far many are willing to stretch their systems to avoid new expenses.
How homeowners are navigating repairs
With professional labor costs rising, many homeowners are turning to a familiar alternative: doing it themselves.
About 62% say they’re tackling critical repairs on their own instead of hiring a contractor, according to Guardian Service. Younger homeowners are especially hands-on: 2 out of 3 Gen Z and millennial homeowners report using online videos and tutorials to guide their fixes.
But while DIY can save money in the short term, it comes with risks—especially if you forget to loop in your insurance provider. Failing to report major upgrades could jeopardize your extended or guaranteed replacement cost coverage. That coverage provides extra funds if your home costs more to rebuild than what’s listed on your policy.
Hidden insurance rules that could cost you
One of the most common and costly mistakes homeowners make is failing to tell their insurer about major upgrades.
Whether it’s adding a room, renovating a kitchen, or installing a new wood stove, these improvements can affect your home’s value and risk profile. But if your insurer isn’t notified, you could lose access to extended or guaranteed replacement cost coverage.
In other words, even if your home is insured, your improvements may not be. Staying in touch with your insurer after major upgrades isn’t just a best practice, it’s a financial safeguard.
Missed opportunities: Upgrades that can lower your premium
While many homeowners are delaying repairs out of fear or financial strain, they may be overlooking upgrades that could actually save them money.
Nearly half of surveyed homeowners say they’d move forward with a postponed project if it meant reducing their insurance premium. The problem? Most don’t know which upgrades qualify. According to Guardian Service, 71% of homeowners say their insurer hasn’t clearly explained how home improvements could impact their rates.
Some of the most common premium-lowering upgrades include:
- Installing a smart thermostat
- Adding a central security system
- Replacing older windows with storm-resistant models
- Updating the roof
- Making fireproofing improvements, especially in wildfire-prone areas
Because every insurance policy is different, experts recommend speaking with your provider or a licensed agent to review which changes could improve your home’s safety—and bring down your monthly bill.