Are You Making This Six-Figure Budgeting Mistake With Home Repairs?

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Are You Making This Six-Figure Budgeting Mistake With Home Repairs? By: Leslie Cook Leslie Cook Editor, Real Estate | Joined November 2019 Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. She also writes about home renovation trends and tips. Has also written: Why Refinancing Your Mortgage Can Reshape Your Financial Strategy — Not Just Your Rate What Is a Home Equity Loan?

Why Trump Wants to Keep America's House Prices High Older Homeowners Make Less Money When Selling. Here's What They Can Do About It Housing Market Forecast: Will Home Prices Finally Fall in 2026? See full bio Editor: Kaitlin Mulhere Kaitlin Mulhere Editor | Joined March 2015 Kaitlin Mulhere is an editor at Money.com. Since joining in 2015, she’s written and edited about a variety of personal finance topics, including banks, credit, student debt, saving strategies and more. Has also written: Who Doesn't Have to File Taxes This Year? Details for Retirees, Students and Gig Workers 7 Best Private Student Loans of March 2026 Is Debt Settlement a Good Idea?

Pell Grants Will Soon Help Students Pay for Job Training Programs Student Loan Changes 2026: New Repayment Options, Taxable Forgiveness and More on the Way See full bio Published: Mar 20, 2026 9:52 a.m. EDT 5 min read Money; Getty Images You know it's going to happen at some point. A pipe will break, or your HVAC system will go on the blink, and you'll get hit with a major home repair bill. The question is, will your wallet be ready for it? According to a recent study by financial services company Synchrony, the answer for most homeowners is a resounding no. While many do set aside money for home repairs, they vastly underestimate how much they'll need over the course of living in the home. The study found that people tend to estimate a "lifetime" maintenance cost of $70,000. In reality, those expenses will total an estimated $339,000, with the price tag rising above $400,000 if emergency repairs are needed. Synchrony's projections are based on estimated costs over nearly five decades of homeownership. Curtis Howse, who leads the home and auto divisions at Synchrony, said in the report that such a large discrepancy between homeowner estimates and actual costs demonstrates "a critical disconnect between perception and reality." The lack of awareness around typical maintenance requirements leads to another distressing trend highlighted in the survey. Ninety percent of respondents said they have a home repair need, but almost half haven't addressed it because of the high costs. When maintenance is delayed, even small repairs can become major issues over time, increasing the financial outlay required to correct them. "At a time when homes are older and more expensive to maintain, many homeowners are unprepared when it comes to understanding and planning for the real cost of maintenance and repair," Howse said. Ads by Money. We may be compensated if you click this ad.AdCompare side-by-side Home Warranty plans in secondsCompare Home Warranty plans in secondsWhat items in your home are you looking to cover?Home Systems Compare PlansHome Systems: Key systems like HVAC, pluming and electrical.Home Appliances Compare PlansHome Appliances: Major appliances like refrigerators, ovens, dishwashers and washer/dryer.Home System + Home Appliances Compare Plans2 of 4Are all your systems and appliances working properly?YesNoI understand your desire for the peace of mind of a home warranty. However, home warranties cannot cover appliances or systems that are already broken. They are designed to protect you from unexpected breakdowns, not to repair existing damage.To get immediate help, check out these trusted providers to help get you back on track.Powered by|Get StartedWe couldn’t find pros that match your exact searchCan we help with something else on your to-do list?Try another search__image__el____business_name____text_pills____stars____reviews__Visit3 of 4Do you own the property for which you want to purchase a Home Warranty?YesNoHome Warranties don't cover broken appliancesWhoops! Home Warranties aren't available for renters. We have a few other ways to help you with unexpected repair costsRenters Insurance: Covers theft, vandalism, fire, and other covered events, including repairs to the rental property if caused by the renter or their guests.Term and conditions apply. Learn More.

Money Group Privacy Policy & T&C.Home Warranty Plans Available Through Our PartnersRecommendedCompany PlansCompaniesMonthly Cost RangeWaiting timeDeductible per claimAppliance Age Limit How to budget for home repairs Buying and owning a home is a large investment, so you want to make sure it remains in tip-top shape. The best way to do that is to purposefully set aside an emergency fund for home maintenance so you're not forced to come up with the funds out of the blue. There are a couple of guidelines you can follow to achieve your set yourself up for success. A common rule of thumb is to set aside between 1% and 4% of your home's value each year. For example, if your home is worth $350,000, you would aim to save between $3,500 and $14,000 per year. Another way to establish a budget is to save at least $1 per square foot of your home. If your home has 4,000 square feet, for example, you would save $4,000 per year (or more, if your budget allows). Exactly how much you should have in your repair fund will be determined by the age and condition of the property: the older the home and the higher the wear and tear, the more you should expect to spend on repairs. Putting aside several thousand dollars at once for a maintenance budget may seem daunting, but don't let those figures discourage you. Figure out how much you can comfortably contribute each month and deposit that into a dedicated savings account (or an individualized bucket within a bigger account). As with all savings, anything is better than nothing, and the more you save, the more you can let your money work for you by sitting in an interest-bearing high-yield savings account or money market fund until you need it. The sooner you begin saving, the larger your emergency repair fund will grow. Finally, it's helpful to know the most expensive repairs you may need to plan for. According to Synchrony, a leaky or storm-damaged roof costs an average of $11,373 to fix, followed by an HVAC system breakdown ($8,219) and burst or leaking pipes ($4,284). Once repaired, you shouldn't have to worry about them again for a while, which gives you time to replenish your savings. The good news is that once you've accumulated enough money to cover major repairs, you can adjust your savings strategy to a minimum. Doing a little bit of homework to research typical costs for common repairs (and updating your estimates every year or so) can give you a good sense of how prepared you are. Ads by Money. We may be compensated if you click this ad.AdMulti-Year Discount AvailableSee Details🔥 SALE: $150 OFF + 2 Months Free Members Can Save Up to 50% at Nike, Costco, Home Depot & 1000’s more Online Business Bureau Accredited with A+ Rating Covers Major Home Systems, HVAC & Appliances Free Roof Coverage, No Inspection Needed Industry Leader Since 1971See DetailsLimited Time Offer: Up to 50% Off Select Plans!* Home Warranty Plans Starting at $29.99 a Mo. Covering 2 Million Plus Members for 50+ Years No Age Limits on Covered Systems & Appliances No Inspections or Records Required 24/7 Support Whenever Your Appliances FailSee Details24/7 support whenever your appliances fail Large network of independent prescreened contractors and qualified technicians In business for over 30 years Good coverage on home systems Does not cover pre-existing issues They will replace items that fail if they can't be fixed regardless of age, make or model Fastest Claim Dispatch in the IndustrySee DetailsNational Home Warranty Day Special Offer: 50% OFF + 2 FREE months & FREE Roof coverage Fastest Claim Dispatch in the Industry Pre-Screened and Licensed Local Technicians 2023 Best-in-Service Award Multi-year discount available Seniors & Veterans Discounts Available 24/7 claims + U.S based dedicated account manager More from Money: 7 Best Home Warranty Companies of 2026 Winter Storm Season Is Prime Time for Home Repair Scams: Here's How to Spot One What Does a Home Warranty Cover? SHOWHIDEAds by Money. We may be compensated if you click this ad.AdSecure your home and budget with Select Home WarrantySee Details