While most homeowners budget for planned improvements and routine maintenance, they may not be prepared for emergency home repair if a storm sweeps through and devastates their home. Having an emergency fund and reliable homeowners insurance coverage should protect you, but it’s important to know the funding options for an emergency home repair. You may not be able to wait around for an insurance claim to come through if your entire roof is torn off by a hurricane. If you don’t have cash prepared for immediate repairs, there are other options.
How Do I Finance An Emergency Home Repair?
Homeowners Insurance Claim
Now you DON’T HAVE to worry about it, we have you covered! Every general contractor, roofer, and mitigation company in our network self funds their builds pre-settlement! Meaning, if you have an outstanding insurance claim that hasn’t been paid by your insurance carrier, our contractors will come out, assess the damages, prepare a proper estimate for your insurance company, and begin work immediately! Once the work is completed to your property, the contractor will then submit their bill to your insurance company for payment. There is zero liability to you the property owner, other than your deductible. Call or email us today to find out more.
Hiring a Public Adjuster If You File A Claim
If you do file a claim, you may hire a public adjuster to deal with the claim, communicate with your insurance company about the claim’s value, and ensure that no damage is overlooked. You may want to hire a public adjuster if you’re filing an insurance claim under the following circumstances:
- You don’t have the time or energy to deal with the insurance company because you’re focused on rebuilding your home
- The damage is severe and your claim is large
- You’ve had poor experiences with insurance companies in the past
- You think the insurance company’s claim settlement is too low
Other Financing Options In Case Disaster Strikes
For small to medium emergency home repairs, personal loans are the easiest to come by and funds are available the day after you get approved. Typically all you need is proof of income and employment, so if you have a solid job history it’s easy to get approved. Unfortunately, personal loans have fairly high interest rates, so make sure your credit score is good to get the best rate and make sure it’s something you can pay off quickly.
Home Equity Loan
Home equity loans are lump sums that come in larger sums than personal loans and are secured against the equity you’ve built in your home. This is best for major repairs over $25,000 (that’s the minimum for most banks), but you may be able to find a home equity loan for less if you dig around. However, you’ll have to have at least 15-20% equity in your home, and be able to afford loan repayments since your home is used as collateral.
Home Equity Line Of Credit (HELOC)
HELOCs are the same as home equity loans but you’re given a line of credit to draw on multiple times rather than a single lump sum. HELOCs allow more control over how much you borrow and pay back, which may be helpful if you have a major emergency project with unpredictable expenses.
Home Improvement Loan
This is a type of personal loan you can use to cover costs such as upgrading and remodeling or paying for emergency fixes. Since they’re generally unsecured, you won’t have to use your property’s equity as collateral. The repayment schedule is typically shorter, and once you’re approved, lenders will deposit the money within a few business days. It’s a personal loan, so you’ll be facing higher interest rates.
If your home repair costs are literally through the roof, you may want to think about refinancing into a 203(k) mortgage. Such government-backed options are insured by the Federal Housing Administration, allowing mortgage issuers to consider financing homes they normally wouldn’t (such as one in need of serious emergency repairs). However, 203(k) mortgages take time, and that may be an issue when your home needs immediate repairs.
Disaster mitigation refers to an ongoing effort to protect people and property from natural disasters. Through mitigation technologies and practices, we can proactively ensure that your home and belongings are more thoroughly insulated from floods, hurricanes, earthquakes, and other natural hazards. Some ways you can protect your home from severe damage in case of natural disasters include:
- Installing hurricane straps to more securely attach the roof to the walls and foundation
- Securing shelves and water heaters to nearby walls
- Elevating or relocating structures out of the floodplains
- Purchasing flood insurance
- Using fire-retardant materials