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5 Things to Do When You Have an Unexpected Home Repair

The joys of homeownership are fraught with difficulty. While you may gain emotional security and financial stability in owning a home, you also face uncertainty when it comes to big repairs or damage. While you will likely save on your monthly payment, you face much larger yearly expenses like property tax and home maintenance. Included here are a few things to do when you face an unexpected home repair.

Call Your Insurance Company

Unless you have unwisely chosen to go without homeowner’s insurance, most people will have the option of calling on them in a time of need. Unfortunately, many things may not be covered, but it doesn’t hurt to check in with your company. Minor repairs and maintenance are not usually covered by insurance, so unless it was significant damage to the home, you will likely not receive coverage.

Apply for A Home Repair Loan

In times of trouble where you desperately need something repaired on the home, think roof blowing off or water pipe burst, you need to find funds for fixing fast. If you have good credit you may qualify for an unsecured home loan. These kinds of loans will not require use of your home or other asset as collateral but do require impeccable creditworthiness.

Dip Into Savings

Now you may hate digging into your hard-earned cash as much as the next guy but sometimes it is necessary to keep your home in livable condition. By designating a certain savings account for home repairs in particular you make sure you can afford all of the curveballs home ownership throws at you. Treat your savings account withdrawal as a loan, and you can pay yourself back over the following months.

Borrow Against Your 401(k)

While you may be advised against dipping into this retirement fund, it is not as much of a problem when you are young. Rules may vary depending on your location but most 401 (k)s will allow you to borrow up to $50,000 or 50% of your vested balance. You will be treating this borrowing as a loan and will be required to pay it back, but at least you know you are paying yourself!


Refinancing your home can be a dangerous game to play if you are not responsible about paying off that mortgage. In some areas, you may be able to roll the additional home repair costs into your current mortgage leaving you with one monthly payment. This would change the kind of loan you have into a 203 (k) loan which is designed for homes that need renovating.

If you know you already have equity wrapped up in your house, you can easily use a home equity loan to pay the repairs. You must have a great credit score and significant equity to qualify. You are borrowing against your home in this instance, so you should not do this if you have any question about being able to pay it back.