Important Financial Home Protection For Our Homes

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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.


The idea of potential debt should not scare you away 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.



If you get robbed, your home will be fixed and 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.


What if your water heater bursts and floods? 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 dollars.


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.


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7 comments

  1. We recently purchased a house that had a 1 year home warranty. The garage door opener went out, we priced having it replaced by Home Depot first, then called the home warranty company. Guess what, there was less than five dollars difference in cost., Home Depot being cheaper. I had heard that a Home Warranty was a waste of money, it was the seller who had paid for the warranty so we were not out that cost. We have now been here nearly a year and they have sent us a notice to renew. It went into the trash.

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  2. Brenda, I had one. It expired, but my expensive HVAC went out and it was the best thing on the home and fairly new. It was a 700 dollar repair for a motherboard, but then I remember I had a warranty. It cost me 100. So I think it depends on what breaks. My sister has had the best of luck with her warranty. It was the only thing I redeemed on mine within the period, and the warranty came with the home.

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  3. Yes, you definitely do need a financial plan to pay for an unexpected emergency. We had to replace our water heater recently. We paid for it with money out of our savings account.

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  4. I love these decorating ideas. The designs are so vibrant and the view is so happy and cheerful.
    Wonderful Green Overlook

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  5. We don't have a Home Warranty but we do have Home Owners Insurance. This past winter (is it really past yet?) we had a heating pipe burst after that big Artic freeze and flooded our front room. We were lucky in a sense because there was not that much stuff in there put the paneling, insulation, carpeting, padding, woodwork and tile entry were ruined. What a mess to come home to water pouring out of the house and 3 inches in the room. Insurance companies are such a PITA and we're still grappling with them to just give us the money to have it repaired. So far we have put a little over $2000 of our own money into it. Everyone says we should get our money back but we'll see....I'm not a very trusting person!

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  6. Brenda, did I miss the Blacklist synopsis or did you do one this week? You might be too busy, but I appreciate your thoughts. And I miss your red checked header sooo much! Vicki in Louisville KY

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I always enjoy reading your comments and having you join the conversation here at Cozy Little House. It is like having a gathering of friends sitting in my cozy apartment. Enjoying coffee and dessert, chatting and having a good time. I appreciate each and every one of you! However, if you are a no-reply commenter, I cannot reply via email to your questions or comments.

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