There are many different unexpected home expenses that can occur when you own a property. You can incur damage to the structure of your home because of an unexpected weather event. You might have a leaky pipe that causes water damage to your foundation. You may have even discovered that there is mold in your house, causing it to be an unhealthy place to live at the moment. Whatever your problem is, costly home repairs can be very stressful. If you didn’t see these expenses coming, there’s no need to panic. You have a few different options that you can contemplate.
Keep an Emergency Fund
When you’re a homeowner, it’s a good idea to have funds set aside at all times for an event like this. You never know when something is going to go wrong. We can hope that the issues we experience are simple to take care of, but things happen. Set aside a little bit of money each pay period. That money shouldn’t be touched unless you have an issue with your home that needs to be addressed immediately. If you have to dip into this reserve, you can start building it back up once the problem has been taken care of.
File an Insurance Claim
You should call your insurance company to see what kind of coverage you have for the problem that you’re experiencing. You may very well be able to file a claim for the issue. George Salinas warns that while you may have to make emergency repairs immediately, you should always keep records of all expenses so you can be reimbursed later. Don’t put off your repairs. You could end up making the situation worse in the long run.
Talk to Your Bank
If you don’t have the money available for your unexpected home expenses and your insurance company isn’t going to assist, you should head to your bank to see what they can do for you. There are a number of different loans available that can help with unexpected repairs. They have various interest rates, so you’ll need to speak with someone at the bank to determine what your best option is. A home equity loan is a bank product that a lot of people utilize to make improvements or repairs to their home. Your average home equity loan is going to give you a decent interest rate. You’ll be expected to pay it back over the course of 10, 15 or 20 years. You get to pick the time frame. You also have the ability to pay it off faster. When you first discover that you have an issue with your home, you should contact a contractor that can help you fix what the problem is.
Your primary focus should be preserving the integrity of your home. After that occurs, you can start worrying about the money side of things. Nobody wants to take out a loan that they have to pay interest for, but this is an option that you can take into consideration.