Do you want to keep major home repairs from wrecking your budget?
We’ve all been there as homeowners. Everything seems fine one day. The next day you wake up to water dripping through your living room ceiling and a contractor telling you it will cost thousands of dollars to make the repairs.
The good news is that by using the right planning and budgeting techniques, you can prepare yourself for these large expenses.
Here’s what you’ll learn:
- Why repair costs are increasing
- How to create an emergency repair fund
- How to find reliable roofing contractor services
- Budgeting tips that actually work
Why Repair Costs Keep Going Up
Home repair costs are increasing every year.
One of many reasons why budgets continue to take hits.
According to recent data, home repair and remodel costs have increased by 61% over the last decade. One kitchen remodeling project that cost homeowners $5,000 in 2011 could easily cost them over $8,000 today.
Repair costs increase for a variety of reasons. Labor makes up nearly 60% of all repair costs now. Many material costs continue to skyrocket as well. And skilled contractors are harder to find than ever.
Your roof is one of the biggest expenses when it comes to home repairs.
Any homeowner who begins looking into roof contracting in Centralia or anywhere else quickly learns that roofing contractor services are some of the biggest expenses they will face.
Roof repairs account for over 25% of the total average value of residential insurance claims. High winds, hail, and even aging can cause minor leaks to turn into replacement jobs in a matter of days.
How To Build Up an Emergency Repair Fund
The best way to prepare for surprise repairs is to have a rainy day fund set aside.
Most experts recommend saving between 1-3% of your home’s value per year for maintenance and repairs. On a $300,000 home, that means putting away $3,000 to $9,000 each year.
It may not seem like that much money. But consider these statistics:
Americans spent nearly $31 billion dollars on roof repair and replacement costs alone in 2024. Research shows roof repair costs have increased by 30% since 2022. Homeowners without an emergency fund had to make tough decisions.
The trick to building up your emergency fund is to start small and stay consistent. Use the tips below to start saving today!
- Begin saving whatever you can. If you can only afford $100 a month, that’s okay. Just make sure you’re adding to the fund each month.
- Set up auto payments. Have a certain amount automatically deposited into your home repair fund each month. Consider it another bill that needs paying.
- Have a separate fund. Don’t mix your home repair funds with other emergency money you’re saving. It’s easier to spend when the money is in a different account.
The idea isn’t to be able to cover ANY repair. It’s to have enough money to cover most issues.
How To Find Trustworthy Roofing Contractor Services
Speaking of repairs, it’s also important to know who you’re going to hire when something goes wrong.
That’s why it’s important to research local roofing contractor services before you actually need them.
Remember, you get what you pay for. That doesn’t mean you should hire the contractor with the highest bid. But do your research before letting someone come into your home.
Look for these qualities when finding a contractor:
- Licenses and Insurance: All contractors should be able to provide proof of up-to-date licenses and insurance. If they can’t or won’t, find someone else.
- Written Estimates: Anyone who gives you an estimate over the phone isn’t someone you should trust. Ask for a written estimate with itemized costs.
- Recent References: Contractors should be able to provide you with recent references from other local jobs they’ve completed.
- Good communication: Great contractors thoroughly explain what they found and answer any questions you have. They don’t let you wait days to find out about additional repair costs.
- Warranty: Contracting services should provide both a parts and labor warranty. Ask about warranty length before hiring.
Bonus tip: by building relationships with contractors before you need them, you also may be able to receive priority service over new customers if an emergency does happen to you.
Budgeting Tips that Will Work For You
In addition to your home repair fund, there are some other budgeting strategies that can help you prepare for large expenses.
Schedule Regular Inspections
This may seem like common sense, but having your roof, HVAC, and plumbing systems inspected every few years can save you thousands of dollars in the long run.
If a problem is caught early, it’s usually a lot cheaper to fix. A $100 inspection could save you a $1,000 repair down the road.
Know When Systems Were Installed
Did you know every system in your home has an average life expectancy?
Roofs should last about 20-30 years. Water heaters 8-12 years. HVAC systems about 15-20 years. When you know when these systems were installed, you’ll have a better idea of when you’ll need to start preparing for the next replacement.
Consider a Home Warranty
While home warranties are not for everyone, they can be beneficial for homeowners who have older systems or very tight budgets.
Home warranty plans typically cover repairs to major systems such as plumbing, HVAC, and roofing for an annual fee. There will likely be an additional service call fee as well.
Shop Around
Even with some preparation, you’ll likely need to get a few bids for major repair jobs.
Don’t trust the first person you find. Especially if it’s someone who knocks on your door out of the blue. Get quotes from at least three different roofing contractor services or repair companies before making your final decision.
How Costly Can Unexpected Repairs Really Be?
You may be thinking, why spend thousands of dollars on repairs I may never need? However, putting off repairs can end up costing you much more down the road.
If that minor leak in your roof is left unattended, it can lead to wood rot, mold, and all sorts of issues that could have been prevented. Suddenly that $500 repair turns into a $5,000 job.
Roofing problems are a perfect example of this.
One missing shingle may not seem like a big deal. However, damaged shingles allow water to reach the roof underlayment. Once the underlayment is compromised, soon your roof deck will start to rot.
And before you know it, your entire roof structure is in jeopardy.
Final Thoughts
No homeowner ever wants to think about major repairs. But the reality is, everything wears down over time.
Your roof will need repairs or replacement. Your HVAC will stop working. Your plumbing will leak.
The difference between staying stressed about money or staying calm comes down to one thing: preparation.
To quickly recap:
- Allocate 1-3% of the value of your home for yearly repairs and maintenance.
- Start a home repair emergency fund that you contribute to each month.
- Research local roofing contractor services and other contractors long before you need them.
- Schedule regular inspections of your roof, HVAC system, and plumbing.
- Don’t put off required repairs.
