The Hidden Cost of DIY: 58% of Homeowners Blow Their Budget
The expenses of owning a home extend far beyond the initial down payment. According to our 2024 Financial Goals Report, a staggering 86% of U.S. homeowners have sacrificed something in their lives to prioritize homeownership costs.
Additionally, our Homeowner Preparedness Report revealed that nearly half (41%) of surveyed homeowners plan to handle renovation, repair, and maintenance tasks themselves to help manage these costs. But how do you know when it’s more economical to do it yourself (DIY) or when to hire a professional?
We surveyed over 1,700 U.S. homeowners to reveal common pitfalls and to help ensure your next project is an unmitigated success—not an unexpected expense.
Key takeaways
- More than half (58%) of responding homeowners spent more than anticipated on DIY projects due to errors. This highlights the often-overlooked costs of self-execution and underscores the importance of thorough planning and budgeting to avoid financial strain.
- 54% of respondents experienced financial issues during their DIY projects that were significant enough to require financial assistance. Additionally, 38% of those who faced damage from DIY mistakes ended up paying $500 or more in repairs, emphasizing the financial risks associated with DIY endeavors.
- Many DIYers (47%) underestimated the time commitment required, while 38% did not accurately budget for their projects. These miscalculations can lead to unexpected costs and project delays, making careful planning crucial for a successful DIY experience.
- Despite the challenges and financial pitfalls, 51% of homeowners remain "very optimistic" about their DIY capabilities. This positive outlook, even after setbacks, highlights the potential for DIY project success with the right preparation.
Cost-saving or just costly? The financial impact of DIY projects
We surveyed over 1,700 U.S. homeowners who have undertaken a DIY project in the past five years. Of these homeowners, the leading factors that contributed to taking on home projects themselves included cost-savings (70%) and budget constraints (49%).
While the potential for substantial cost savings is undoubtedly enticing, the data reveals a sobering reality: financial missteps are commonplace. Over half of responding homeowners completing DIY projects (58%) ended up spending more than anticipated due to errors, highlighting the often-overlooked costs associated with self-completed home projects.
But this doesn’t mean you should ditch DIY projects altogether. It underscores the importance of careful planning, budgeting, and perhaps even a degree of DIY expertise before embarking on such endeavors.
When asked what mistakes they made while completing DIY home projects, 47% of respondents admitted they "underestimated the time commitment" required, and 38% acknowledged they "underestimated the budget required."
With careful planning and execution you can celebrate a DIY success rather than mourn a DIY disaster. If you’re considering a DIY project, check out our home renovation mistakes checklist to help avoid common (and potentially costly) DIY project pitfalls.
54% of DIY homeowners seek financial aid after botched projects
Of those who faced difficulties, 32% had to rely on their homeowner's insurance to offset the costs, while others turned to personal loans (19%), credit cards (26%), borrowing from family or friends (11%), or even a home equity line of credit (HELOC) loan (7%). These findings highlight that while DIY can be rewarding, it can also carry significant risks.
Not all DIY projects are created equal. While some are an excellent way to maintain or improve your home, others can quickly spiral out of control and lead to unexpected expenses.
One area where DIY efforts often stumble is in projects that require permits. These jobs are typically more complex and regulated, involving essential safety standards. Our survey found that 23% of homeowners who attempted such projects ended up taking out a HELOC loan to cover the fallout, and 55% turned to their homeowner’s insurance. Additionally, 38% of U.S. homeowners who faced home or property damage due to a DIY mistake ended up paying $500 or more in repairs.
These experiences highlight why homeowners should understand their insurance coverage before picking up any tools. The right coverage can help provide much-needed peace of mind when things go wrong, but it’s not a catch-all solution. Certain damages may not be covered, especially if they result from negligence or un-permitted work that requires a permit.
The best claim is the claim that never happens. Routine maintenance tasks like painting, landscaping, or simple repairs can be safer DIY projects. However, it could be safer to call a professional for projects involving electrical work, plumbing, or structural changes. These experts have the necessary skills and can help ensure that the work complies with local building codes, which can prevent costly mistakes in the long run.
51% of respondents are “very optimistic” about future DIY projects–despite setbacks
Despite the challenges, the majority of homeowners remain upbeat about their DIY journey. This optimism is especially notable considering that 58% of DIY projects have ended up costing more than initially planned due to errors.
This positive outlook holds true across various financial recovery methods. An encouraging 77% of homeowners who used their homeowners insurance to cover damages from DIY projects reported being "very optimistic" about their future DIY endeavors. Similarly, those who secured personal loans (73%), used credit cards (59%), borrowed from family or friends (65%), or tapped into HELOC loans (65%) shared a strong sense of optimism regarding their ability to handle home improvements in the future.
This optimism is encouraging because, with the right preparation, DIY projects can be both empowering and cost-effective. Understanding your homeowners insurance, anticipating potential pitfalls, and budgeting wisely can help homeowners avoid the common errors that lead to DIY disasters and instead support greater return on investment (ROI).
If you’re unsure what types of DIY projects may be covered under your home insurance policy, the Hippo Learn Center is a great place for guidance on home coverage. If you’re looking for additional support on your next DIY project, consider Hippo Home Assist as your go-to resource. With 24/7 access to home experts, you can get real-time help diagnosing problems and identifying solutions.
You can also find in-depth, customized maintenance plans and reminders to help you prevent and tackle home repairs and maintenance with the free Hippo Home app. Available for free in the App Store and Google Play.
Methodology
This survey was conducted by SurveyMonkey Audience on behalf of Hippo Insurance Services on August 1, 2024. The results are based on 1,736 completed surveys. To qualify, respondents were screened to be U.S. homeowners who are over 18 years of age and have completed a DIY home project in the last 5 years. Data is unweighted, and the margin of error is approximately +/-2% for the overall sample with a 95% confidence level.
