Preparing for Unexpected Expenses as a Homeowner

Owning a home is one of the greatest milestones you can accomplish. It also comes with a bevy of expenses, many of them unexpected. So how do you prepare for unexpected expenses – everything from leaky pipes to major issues like needing a new roof – when they are, by their very nature, unpredictable? Well, there are a few ways. 

The 1% Rule

Each year, take 1% of your home’s purchase price and set it aside as a baseline fund. This is a great starting point for your unexpected expenses budget. Add to it when you can to keep the fund plump enough for the next major or minor repair. 

Homeowner’s Insurance

This is one you should likely already have as it’s essential, and if you don’t, secure a policy as soon as you can. Most standard policies will protect your home from fire, hail, wind, and lightning damage, while additions like flooding coverage are recommended if you’re in a risk area. 

Keep Up with Maintenance

The thing with many unexpected expenses is, if you could go back in time, you’d probably see they weren’t so unexpected after all. That is to say, if you notice a leak in your roof but elect not to take care of it while it’s small, it won’t be much of a surprise when your roof begins sagging and suddenly needs major repairs. 

Staying on top of minor repairs and projects is vital to keeping unexpected expenses at bay. Tend to them before they develop into disasters and you’ll save yourself time, money, and stress. 

Follow these tips and more to protect yourself as much as possible from unexpected expenses! 

Are you considering taking advantage of the seller’s market? Contact Watson Realty Corp. to get started with an initial home value estimate.