It’s every homeowner’s worst nightmare: You think that everything is perfectly fine and then a major home repair issue springs up out of nowhere.
It could be a burst pipe, a leaky roof, or a broken window. No matter what the issue may be, you need it fixed and you need the work done fast. However, how can you be better prepared to cover the costs associated with these unexpected home repairs? By using these tips to save and reduce your repair stress.
Start Putting More Money Into Your Emergency Fund
Think you don’t need a repair fund for your home? Even if you buy a brand new home or have one custom-built, you still need to sink some funds into an emergency savings account dedicated to covering home repairs. Because even with a brand new home, accidents, natural disasters, and unexpected issues are still bound to come up at some point. If you luck out and don’t need those funds for an emergency, you can always use your savings for a more pleasant remodel or project in the future. So, how much should you aim to save? On average, homeowners spend around $10,390 for major repairs and renovations, but the amount you should save will depend on your home value and finances.
Have a Backup Plan for Covering Major Repair Costs
If you are currently dealing with a home repair crisis, no amount of saving advice is going to be helpful to you at this point. So, if you need fast access to money for repairs on your home, know that you can use any equity you have for a cash out refinance. With cash out refinancing, you basically trade your current home loan for one with terms that allow you to cash out any equity you may have. If refinancing your home is not your best bet, there are other options for covering repair costs quickly. You could opt for a new credit card or look for a home improvement loan to help out with any unexpected home expenses.
Recoup Out of Pocket Costs with Your Homeowner’s Insurance
You may be stressed about those repair costs but know that you may be able to get some of those costs back. Get out a copy of your homeowners insurance policy and see if you can be reimbursed by filing a claim. If you have an agent, get in touch and ask about the claim process as well as any deductibles that may apply to your repair. Filing an insurance claim is well worth it if you can regain thousands for your emergency fund, but also know that some home repairs may not be covered. For example, certain water damage may be excluded, so filing a claim will not be worth the time and effort.
Look for Ways to Save Without Sacrificing Quality Repairs
Asking for help from your homeowner’s insurance is not the only way to reduce your costs for emergency home repairs. Contractors and handyman services all know that reducing repair costs can be as simple as being savvy with the type of materials used for the job. You can still get quality mid-grade materials for a lot less without affecting the quality of your home repair or renovation. You can also DIY some home repairs. If you are working with a contractor, you can also attempt to negotiate rates but be on the lookout for signs of a scam. If a price seems to low or your contractor asks you to pay before any work is started, you could end up getting ripped off and forking over more money to have those repairs completed.
Dealing with an emergency situation involving your home is never easy. However, it can involve less effort and expense if you are able to plan ahead. Even without a solid plan, you can still cover those home repairs without stressing yourself, or your budget out. You just need to keep this guide handy so you will have a better idea of the steps you need to take care of those emergency home repairs quickly.
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