Emergency Repair Funds

Oct 4
Category | General

Whether you are a brand-new home owner or have lived in your house for several years, having an emergency fund for unexpected repairs can help you cover costs without sacrificing your financial security. Depending on a few factors, like where you live, how old the house is, and other considerations, setting aside an emergency repair fund is key. 


General Repairs 

A recommended amount to have saved for these repairs is 1% of the cost of the home. Examples of such general repairs are: 

  • Replacing the boiler 

  • Fixing the air conditioning 

  • Replacing a hot water heater 

  • Minor plumbing issues 

  • Minor electrical issues 


How to Calculate your Emergency Fund 

For larger repairs or longer-term emergencies, it is advised to save the equivalent of at least 3 months of your major living expenses. When calculating this amount, don’t forget to include: 

  • Housing Expenses - including mortgage, property taxes, and utilities 

  • Food - groceries and dining out  

  • Various Insurance - medical or auto 

  • Transportation - gas or public transit fare 

  • General personal expenses 

  • Communications - cell phone, internet, and cable TV 


Should you not have an emergency repair fund, or you are unable to save the recommended amounts, be sure to discuss all options with a professional to see what solution is best for you.