Building an Emergency Fund to Cover Unexpected Home Repairs (2 of 4)

Establish an Estimated Baseline Cost of Annual Home Repairs

Saving for a home purchase requires persistence and dedication - good habits that should continue well past settlement day. The total amount you'll need in an emergency savings fund can vary widely from home to home, as certain home characteristics may cause you to spend more or less than average on annual maintenance and repairs. Make sure to consider the age of the property, as older houses generally require more upkeep. The quality of appliances, fixtures and underlying systems like heating, cooling and plumbing may also affect your projected home repair costs.

It's also important to consider your home's location. Homes in flood-prone areas may be more susceptible to water intrusion, which can be mitigated with flood insurance. Likewise, exposure to temperature extremes, both hot and cold, can have detrimental effects on your home that require additional repair and maintenance expenses.