Every homeowner knows that maintaining a home requires a lot of planned and unplanned expenses. Some of the major unplanned expenses you may need to deal with are emergency home repairs. Unfortunately, they sometimes come at the time when you are not financially buoyant. Regardless of when they come, you cannot avoid these repairs; hence, it is essential to look for ways to finance the emergency home repairs.
Paying for Emergency Home Repairs
What Counts as an Emergency Repair?
Here are some of the major issues that can be regarded as emergency repairs:
• Repairs of burst or broken pipes or other plumbing problems
• Home foundation repairs
• Sewer line repairs
• Roof replacement or repair
• Water heater replacement or repair
Different Ways to Pay
If you want to pay for emergency home repairs, check out the following vital ways.
• Home Equity Line of Credit (HELOC)
HELOC provides homeowners with equity from the value of their homes. This payment means is easy to access and can cover for the majority of emergency home repairs. However, you need to be careful so that you don’t risk losing your home as a result of a failure to repay.
• Community development programs
Depending on where you stay, local and state governments, financial agencies and other institutions offer programs that help to pay for emergency home repairs. Notably, some of these programs have eligibility criteria, so you need to be certain you qualify before applying.
• Homeowners insurance claim
In some cases, your insurance policy may provide some forms of cover for your emergency home repairs. Therefore, check the policy again to be certain whether it covers the repairs you need or not.
• Cash-out refinance
To ensure that your debt is simplified, you can look at the option of a cash-out refinance. This payment option allows you to roll several debts into one; thus, making it easier for you to repay the loan.
• Credit card
Credit cards can always come in handy when you have home repairs to deal with as soon as possible. Most financial institutions will be ready to offer you credit cards if you can prove your ability to repay. Nonetheless, be cautious as many credit cards come with high-interest rates that will require an extended period to pay off.
• Disaster relief
If an earthquake, flood or storm led to home damage, relief organizations may be able to provide you with the assistance you need. The Federal Emergency Management Agency and the Red Cross are just some of the major organizations that can help you in this regard. Although you may not get enough funds for full restoration of the damaged home, you will get what you need to make the home safe and livable.
How to Be More Prepared in the Future for Emergency Home Repairs
To deal with emergency home repairs in the future, it is essential to be well prepared so that you don’t have to be in disarray when the inevitable happens. The following tips can be useful in preparing for emergency home repairs.
• Have a personal plan for emergency home repair
• Create a funding plan that you can easily access whenever there is an emergency
• Understand the relief options that you can utilize anytime you need to repair your home
• Have a list of trusted home contractors that you can rely on whenever there is a need for emergency home repairs