Home repair emergencies can, and often do, strike without warning. You often need to have repaired by a 24-hour electrician New Braunfels or another emergency technician in order to keep your home habitable. In the aftermath, however, you may wonder how to pay the bills.
What follows are some possible solutions to your problems funding emergency home repair. Some are ideas for planning ahead, while others are steps you can take after the fact.
1. Budgeting and Saving
Part of the challenge of a home emergency is the fact that you cannot plan ahead for them specifically due to their unexpected nature. While there is no way to know how much a repair will cost until it is needed, you can get a general idea of average repair costs to give you an idea of how much you need to save:
- Burst pipe: $5,000 to $50,000
- Foundation repair: $4,000 to $8,000
- Roof repair: $800 to $1,200
- Roof replacement: $7,500
- Sewer line repair: $7,500
Many homeowners find it easiest to set aside 1% of the total value of their home every year to go toward any home repairs that may arise.
2. Home Warranty
If you took out a mortgage to purchase your house, you already have a home insurance policy. However, insurance doesn’t cover everything, and a home warranty can help to fill in the gaps. There is an additional cost involved, but it is usually less than $50 a month. If you can get it through your insurance provider, it may be even less. Nowadays, a home warranty plan can help you to protect your home from breakages and unexpected issues with appliances. For instance, if you have a home warranty plan in place, your home warranty provider will source a qualified contractor in your local area to deal with any issues as soon as possible. Consequently, if you are based in Tennessee for example, having a home warranty provider on your side such as First American Home Warranty can provide peace of mind that any issues will be dealt with promptly.
3. Home Equity Loan
Equity is the difference between the value of your home and what you still owe on your mortgage. You may be able to borrow against your home equity to make repairs or improvements. Keep in mind, however, that this is a loan that will need to be paid back. There are pros and cons to home equity loans, and it may not be an option if you have purchased the property recently and have not yet made enough payments to build up significant equity.
4. Government Assistance
There may be grant money available from the government to cover the costs of home repairs or improvements. If you qualify, you can obtain this money for free and not have to pay it back. However, you will likely have to go through a complex application process. There may also be funds available from the Federal Emergency Management Agency if the damage for which you need repairs were caused by a natural disaster.
There may be several options available depending on your situation. However, to the extent possible, it is a good idea to have a plan in place before an emergency strikes.