As a homeowner things are going to happen. Usually at the most inconvenient time. But it is at those times it is also the most expensive. Protect yourself have an emergency fund for those emergencies that can pop up. You never know what surprise the Prince George weather has in store for you.
Replacing appliances
If major appliances such as the furnace, fridge, and dishwasher are included in your home purchase, get the details on their age, any existing warranties, and whether they’ve required repairs before. If your home’s furnace is nearing the end of its life cycle at the time of your closing, for instance, it’s smart to anticipate you’ll need to set aside between $3,000 and $6,000 for a new one, plus installation in the near future. And while most appliances are not going to cost that much, having a fund set aside will help you when the unexpected happens.
Structural updates
It’s vital to get a professional home inspection to ensure your new house’s structure is sound – especially in older homes – but some issues aren’t always apparent at the time of purchase. Things like sinking floors, warping door frames, or a soggy basement can all point to developing foundation issues, which become more serious over time. Associated costs depend on the severity of the issue; it can cost a few thousand dollars to reseal a cracked foundation, while projects that require digging, re-joisting or hydraulic pier bolstering can cost upwards of $100,000.
Similarly, you’ll also need to keep an eye on the condition of your roof, and know when it was last updated; a full re-shingling is required every 20 years or so and will cost in the neighbourhood of $10,000. As such repairs fall under the category of maintenance, they generally will not be covered by a home insurance policy. It is usually the leaking roof, the faulty pipes, etc that you discover at the worse possible time. LIke after the flood.
Mold and pests
Discovering a colony of termites or mold lurking in the basement can present a pricey fix. Because either can cause structural damage to the home, time is of the essence to treat the issue. Killing off pests, whether through spraying or fumigation, can cost in the $1,500 to $3,000 range, and could be followed up with additional repair or cleaning costs.
Mold can also be an extremely complicated issue; not only is it a health hazard, a widespread case could warrant the replacement of entire walls, and tens of thousands of dollars spent.
Unfortunately, these costs generally aren’t covered by a home policy, as their emergence falls under the “neglect” category in the eyes on an insurer. However, mold that is specifically caused by flooding – if it can be proven – may be covered if the homeowner has sewer backup and overland flood policies.
Acts of nature
Sometimes the biggest hit to your budget will fall from the sky. While it’s highly unlikely your home will be struck by lightning, errant tree branches torn loose by strong winds are common and can cause considerable damage. Heavy rain causing flooding, hail, and fire are other hazards homeowners may need to consider at some point. The good news is, in most instances, these events are insurable – but you’ll still need to have the necessary cash set aside for the deductible, the size of which is dependent on your specific policy. Things you will need attended to immediately. We are lucky in Prince George to not see a lot of weather disasters but heavy snow fall or pack has caused many roofs to collapse in Prince George.
Special assessments
While homeowners carry a heavy financial burden to maintain their properties, condo owners aren’t immune to surprise costs. While general maintenance of the building and most water and electricity systems will fall under the responsibility of the condo corporation, an owner would need to pay out of pocket for appliances that are out of warranty.
All good reasons to have a rainy day fund as a homeowner. You may not have the complete cost of an emergency repair but a fund of any size will be so welcome when the basement is flooded. Denise can help walk you through those hidden homeowner cost you may not have thought of, in Prince George, she is the realtor who will be with you on your home buying process every step of the way.
