As a homeowner, you are constantly in a position where you could
find yourself facing quite a lot of debt. Of course, being a homeowner
is a great financial choice in many other ways. You get tax breaks that
people who rent do not get.
You have equity in your home, which can
increase your personal wealth. You are paying money toward something
that you really own, so you still retain a lot of that wealth, which is
lost to renters.
I owned my home in Texas and — after finding a few tax-specific online calculators — received those tax breaks. Now I’m renting, but being that I work at home, I am able to deduct certain home repairs and other things that are conducive to my business. But not everyone is in that position. And it is important to make sure we have covered all the bases.
from home ownership, but you do need to know how this works so that you
can take the right steps to protect yourself. Your home insurance is only going to do so much. Depending on
the type of policy you have, it could protect you against a total home
loss or a home invasion.
your items will be replaced. If a fire burns your house to the ground,
your insurance will give you the money to have it built all over again.
These are the main types of things that people think about when they get
an insurance policy. However, you have to think about all of the expensive things inside of
the home that could break.
I know I am sometimes lax at reading the fine print. There always seems to be so
many pages to read! But to cover myself in all capacities, I need to have a
professional go over these things with me so that I fully understand what I am signing and that it is covering everything I might potentially need.
The insurance may fix the damage, but it probably will not replace the
water heater. You have to pay for that yourself. What if the furnace and
the entire HVAC system stops functioning, and it is all too old to fix?
You have to put a new system in, which could cost you thousands of
In many parts of the world, the weather outside is so drastic and volatile that it is dangerous to go without proper heating, cooling, and roofing for any substantial amount of time. For things like this, you need to prepare yourself. You could check out the individual warranties on your devices and appliances and have a company like Chase Construction inspect and repair your roof before the cold winter months.
You could look
into a full home warranty that gives you complete protection for a
monthly fee. You could simply start another savings account and put
aside a certain amount of money that you can use if there is an
emergency and a sudden need for it.
No matter what option you choose,
you need to have a financial home protection plan in place.