You're A Homeowner Now What?

Be prepared. 

You're a homeowner now what? Putting a small amount away each month may not seem like much but it is definitely better than nothing.  You need to understand that repairs in your home are your sole responsibility now, and having an emergency fund in place is a great idea to fall back on if necessary.  You should also know that there are many companies out there who offer home warranties.  There are service plans which charge an annual amount and then a deductible amount for each home visit.  The amount of things the warranty covers depends on how much you pay and what plan you choose, but this sort of thing can be a great idea for homeowners who are a little nervous about the thought of things starting to break.  Just be sure that the amount you pay for a home warranty does not exceed the possible cost of repairing everything.  There is a certain point when the warranty simply costs too much to justify, but a nice inexpensive plan with a somewhat small deductible can bring some piece of mind to nervous homeowners.

Sure, everyone knows that water heaters need replacing and sprinkler systems sometimes need repair.  There are other (and more costly) occurrences which can happen, though, which are sometimes enough to make a homeowner dream about being a renter again.  Foundations can settle, resulting in a sinking house.  A car can veer off the street and plow straight into your front window.  Graves can be discovered on your property.  The essential message is this: you are solely responsible for your home and you need to make sure to prepare for the unexpected.  A settling foundation can be repaired but it is a costly procedure so homeowners need to make sure they have adequate funds available.  The same goes for a car zooming into your living room…although in theory the driver’s insurance should cover this you may not have the chance to check the driver’s insurance coverage as they burst through your window.  Something bizarre like a grave or other historical discovery made on your land might be covered by title insurance if it had previously been recognized but either forgotten or hidden.  Yes, being a homeowner has its rewards but it also has its headaches.  It is best to be prepared for anything this is part of your homeowner responsibilities.  

Make sure you have adequate homeowner insurance. 

The aforementioned settling foundation and historical discoveries may not be covered by a homeowner’s insurance policy, but it is best to keep adequate coverage for anything else that may pop up.  Homeowner’s insurance doesn’t just cover things like fire and windstorm damage.  For instance, if a visitor walks up your front steps in the winter and trips on some ice you may be liable for any resulting medical care.  A good policy will cover this sort of thing.  Take note that people who run small businesses out of their homes, especially home day care providers, will need to notify their homeowner insurance companies of this arrangement.  If, for instance, a child in your care falls off your swing set and needs to see a doctor, the parents to cover the medical bills might sue you.  If you contact your insurance company and they realize you had neglected to mention the fact that you’re a day care provider out of your home not only will they probably not pay the claim, but they will either raise your monthly premiums or cancel your policy all together.  One more thing: homeowner insurance does not usually include flood coverage.  Even if you don’t live in a flood zone it is a good idea to get some sort of flood coverage since you never know when a pipe might burst and flood your basement.