For the vast majority of people, our home will be the biggest purchase we ever make. It’s impossible not to know that life as a homeowner can be costly in terms of the mortgage, taxes, and electricity and heating bills you will have to finance– but these factors are just the tip of the financial iceberg.
Even with the best will in the world and a strict adherence to home maintenance, there are certain problems that your home can experience that will deliver an almighty financial shock to you. These areas deserve a little more attention when you’re assessing your maintenance needs, and you need to have a financial plan for what happens if they experience a problem.
Below are the three biggest unexpected financial shocks your home may experience – are you prepared for the havoc they might unleash?
- The roof – The roof is always an expensive area to maintain, but there’s also a chance it will suffer from sudden, unpredictable, unpreventable damage due to adverse weather conditions.
- The pipework – Burst pipes, clogged pipes, leaking drains– the way that water is transported around your home is always liable to problems.
- The heating system – If your boiler experiences problems, then you’re not going to want to have to delay fixing the issue.
Why are these three issues highlighted?
Your roof, pipes, and heating system require extra consideration when planning your household finances for one simple reason: you can’t manage without them. If you have issues with an appliance or decor, you can make alterations that allow you to manage until you have the funds to repair them. That isn’t an option with your roof, pipes, and heating system– if they break, they have to be fixed immediately.
How much money do you need to have set aside?
It is wise to have both an emergency pot of cash and a backup credit card; you can find preferable rates for cards on Best.creditcard. Many homeowners aim for emergency funds of around £1,000, which can be accessible via cash or credit. The more you have, the more prepared you are.
Why not just claim on the insurance if a fault occurs with these three areas?
It can be tempting to look at these three issues and think: “if that happens, it’s fine– I’ll just claim on the insurance”. What you have to keep in mind is that insurance claims are very costly; as cnn.com detail, your premium will rise in the event of a claim. As a result of this, it may make more financial sense for you to avoid claiming on the insurance wherever possible.
Giving the above aspects of your home extra time when it comes to maintenance is the best preventative step you can take, but you still need to have a source of emergency funds on hand just in case something goes wrong. Now you know the areas of your home that have the potential to deliver a financial calamity, you can plan your strategy for how you will cope. Do this, and you’ll successfully be able to ensure that your family finances are shockproof.