2. Costly home repairs
Anyone who owns a home knows there are plenty of unexpected expenses. A flooded kitchen or a damaged roof easily can lead to thousands of dollars in repairs.
Aside from building an emergency fund, the best way to cope is to have a homeowners insurance policy.
Be sure to get quotes from several carriers and compare levels of coverage. If you don’t want to do the comparison shopping yourself, there are now companies that specialize in getting quotes for you. Gabi is one example.
Homeowners policies don’t cover normal wear and tear or damage to electrical systems, plumbing and household appliances, however. One way to guard against expenses associated with such wear and tear is to buy a home warranty, which is like a service contract.
You can learn more about the pros and cons of this type of protection in “Should You Buy a Home Warranty? How to Judge for Yourself.”