Gen Z and other homeowners to delay repairs due to economy

A side effect of the rising costs of homeowners’ insurance is that mortgage borrowers elect to reduce coverage or take a higher deductible in order to reduce premiums.

In either case, such actions could leave them underinsured and/or unable to finance repairs. This increases borrower default risk for mortgage servicers, and affects the value of their collateral.

This year, 71% of over 1,000 homeowners who participated in a survey from insurance brokerage Guardian Service said they were postponing renovations or repairs due to economic uncertainty.

By generation, millennials had the highest share, 74%, who said they would put off essential repairs, followed by baby boomers and Gen Z, both at 71%, and Gen X at 67%.

Why are Gen Zers impacted most by rising home costs

But the Gen Zers are…