How to Budget for Home Repairs

man using cordless drill to install home appliance

As homeowners, we take so much pride in making our house look just how we always wanted. We take pride in bringing in state-of-the-art appliances and sprucing up our house inside and out. However, we may find ourselves spending a little too much on those home repairs. There is a way to prepare yourself for everything that pops up in your household from major renovations to quick fixes that need the assistance of a licensed technician.

Consider your budget options.

man using cordless drill to install home appliance

When planning for home repairs, you want to be sure you’ve established some form of a “rainy day fund” in the event you need to call in a handyman or replace a major appliance or system in your house. There are two approaches to saving for home repairs that are quite common. One of the savings methods is the 1% rule, saving 1% of the purchase price of the house for maintenance expenses.

If you purchased a $500,000 home, you’ll want to save $5,000. Some homeowners opt to save within a range of 1-3% for home improvement projects. 3% is usually recommended for homes that were built more than 30 years ago, located in a wet, humid climate, or built with materials that aren’t long-lasting like wood siding and composition shingles on the roof. Material like stucco siding and rubber roofing are more withstanding, and experts may recommend budgeting 2% of the home’s purchase price for fixes. Newer homes, with recently updated drywall and gutters, are less susceptible to cracks and moisture, likely just needing that 1% to help take care of anything from HVAC cleanup to floor repairs.

Other owners opt for what’s called the square-footage rule, putting away $1 per square foot of your home for annual repairs. The type of existing dwelling that you have, as well as the home modifications you need to make, can also dictate how much money is set aside per square foot. You may want to consider what that repair budget is set aside for. Companies like AFC Home Club cover most major appliances and systems in the event of necessary repairs and modifications, with plans that are paid off based on a chosen service fee fitting your budget.

Warranties are the way to go.

contractor installing home electrical panel

No matter how much you spend or the quality of the workmanship, you always want to have some insurance to protect your home’s systems in the event of a breakdown. Most appliances and systems installed by pros come with some form of money-back guarantee within a set time frame, as well as a warranty on products over time. Beyond those offered by professional handymen or manufacturers, companies like AFC Home Club seek to offer protection plans based on the items in your home and your household income, anywhere in the United States, except in Hawaii.

AFC Home Club’s Platinum plan covers up to 18 of your home’s systems and appliances, including coverage for important home comforts like the built-in microwave or plumbing stoppages. With flexible coverage designed for a homeowner’s budget, think of it as the ultimate repair loan. It’s a monthly fee based on your plan and a service fee based on when an applicant calls AFC. The service fee is the same for every type of pro: plumber, electrician, HVAC specialist, and more.

With the systems, silver, and gold plans, you can opt for a monthly plan that covers the needs of your home, getting 24/7 access to an in-house service team that will take on your home repairs with immediacy. Comprehensive coverage doesn’t cover everything. However, you can include add-ons for home repair services, including your home’s septic tank, pool, or tankless water heater. You’ll have the peace of mind that a technician will do a great job to bring your systems and appliances back up to standard, or spare you from breaking the bank on costly fixes when getting a new unit or system would prove far less costly for your home’s budget.

Regular maintenance will save you in the long run.

homeowner uses screwdriver to change battery in electronic device

Home repairs are frankly inevitable, but you can delay the frequency of those fixes by practicing regular maintenance in and out of your house. Some companies will assess the condition of a home’s system to determine if a warranty is valid. If there’s no effort of upkeep, you may be left with a major expense your household income can’t handle. Think of it like you would curb appeal when selling a house. A dilapidated front yard won’t exactly lure in prospective buyers for an open house.

When homeowners have issues with their home warranty, it’s usually because they don’t understand the coverage. At AFC Home Club, we understand from years of experience that protections are needed, especially for home buyers who are borrowers on a home equity loan. There’s a standard that needs to be kept within the home and outside of the house to make sure that proper workmanship goes into home improvement. It’s also crucial to make sure that professional handymen are giving their money’s worth when it comes to necessary fixes.

Regular spring cleanup is always recommended for homeowners to protect the exterior of the house. It’s an opportune time to replace shingles or siding damaged by winter storms, as well as clean out the gutters to gear up for warmer weather. Regularly scrubbing down the inside of your house will prevent irritants from building up, such as mildew in the bathroom. Creating environments for mildew and mold paves the way for residents to deal with significant health issues down the line. You should also make sure you do a great job of cleaning out any systems that gather sediment and dust, such as your HVAC systems or water heaters.

AFC Home Club understands that homeowners want to make sure that their house is running smoothly. That’s why their plans are modified to be the most beneficial for customers. If your home is fairly new, you may want to invest in a lower plan, for now, changing upon renewal, and adjusting monthly and service fees accordingly. Don’t hesitate to get out in front of potential home repairs as soon as possible.

AFC Home Club Call Now Button