As winter approaches, it may make sense to prepare for the cold weather by sealing cracks and holes around doors and windows no matter where you live. Proactive steps like these may help cut down on your heating bills.
If you’re bracing for a big chill, or worse, a blizzard — predicted to become more intense in the coming years, despite shorter winters — you’ll be glad you protected or checked the pipes, roof, chimney, heating system, and water heater. Your wallet and physical well-being may benefit from the following ways to winterize a house and how to finance the projects.
Ways to Winterize a House
There are numerous ways to winterize a house beyond sealing cracks in doors and windows. And while the steps to winterize a home may differ in Alaska than in Texas, it still helps to get ahead of any issues that may arise.
You should also know that the timing of the first frost can vary from state to state. It may help to check the National Weather Service’s data that forecasts the first frost for each state to assist in your winterization preparation timeline.
The following tips to winterize a house may help you reduce future repair costs and heating bills. And figuring out ways to lower your heating bills is something to pay attention to due to the potential rise of the price of natural gas, which is often used to heat homes.
Protect Pipes or Pay the Piper
When deciding how to winterize a house, you may first consider how to address plumbing leaks and other issues.
Burst pipes can cause $5,000 or more in damage, according to Consumer Reports , citing information from the Insurance Institute for Business and Home Safety , which has a page of recommendations to help prevent frozen pipes.
Pipes in unheated places inside a home, including basements, attics, and garages, are among the most likely to sustain damage. But pipes running through exterior walls can also freeze in certain conditions, and so can those running through kitchen or bathroom cabinets.
Protecting the plumbing is clearly a situation where being proactive may save a homeowner money.
Pipe insulation can be as inexpensive as 50 cents per linear foot. Compare that to the $5,000 figure above, and the rewards of winterization can quickly become clear.
Adding insulation to attics, crawl spaces, and basements can help to keep those areas warmer, which can also help to keep pipes from freezing.
If sinks are located on exterior walls, it can help to keep the cabinet doors open during frigid temperatures (after removing any dangerous chemicals, including cleaners, if there are children or pets in the home).
Allowing cold water to drip can also help prevent pipes from freezing, making sense in frigid temperatures.
Address HVAC Maintenance and Repair
Nobody wants the heating system to perform poorly during the winter — much less have it break down.
It’s a good idea to schedule a professional maintenance appointment, including a filter change before freezing temperatures arrive. (Then it’s best to change the filter at least every 90 days.)
Additionally, maintenance and repairs to the heating, ventilation, and air conditioning (HVAC) system and cleaning out vents can improve airflow in your home.
It may be time to consider a new HVAC system for some people. The U.S. Department of Energy’s Energy Star program provides tips to homeowners to decide if replacing an HVAC system makes sense.
Signs that it might be time to replace the unit include:
• The heat pump is more than 10 years old.
• The furnace or boiler is more than 15 years old.
• The system needs frequent repairs, and energy bills are increasing.
• Rooms in the home can be too hot or too cold.
• The HVAC system is noisy.
If people in a home are away during reasonably regular times of the day, it can make sense to ask the HVAC professional about a programmable thermostat to save on energy costs.
The Environmental Protection Agency’s Home Energy Yardstick can help a homeowner determine if replacing an HVAC system makes sense.
Check the Roof, Gutters, and Chimney
Before winter hits, clearing the roof and gutters of leaves and other debris will help prevent snow and ice from building up and damaging the gutters — or, worse, the roof.
If ice or snow gets beneath roof shingles, it can lead to leaks and interior water damage. You may want to ask yourself if you need to replace your gutters. Do any shingles need to be glued down or replaced? Do any small leaks need to be repaired before they become big ones?
Plus, a chimney inspection can make sense before winter arrives. A chimney could have an animal nest lodged within, and there can also be structural problems. If the home has a wood-burning fireplace, creosote buildup can create a fire hazard. With a gas fireplace, a blocked chimney could lead to carbon monoxide backup, which can be life-threatening.
Addressing all these issues before winter comes can help you prevent future damage, reduce future repair costs and energy bills, and avoid a potential accident.
Examine the Water Heater
You want to check your water heater before temperatures plunge to avoid a chilly shower during winter.
Are areas of the water heater rusting or corroding? If so, this can lead to a leak. A professional can examine it, bleed the system to remove trapped air and mineral deposits, clean the pipes, and recommend and do repairs.
Think About Outdoor Equipment and Plants
Preventive winterization isn’t just about your home. You want to winterize your outdoor equipment, like a lawn mower or other power tools, to protect them as well.
Draining the oil from the appropriate equipment and taking it to a local recycling or hazardous-waste site can be your first step.
You also want to take care of general maintenance on equipment, including replacing old parts. That way, when spring rolls around and you need to mow your lawn or trim your bushes, you should be ready to go.
Additionally, inspect gas caps to ensure O-rings are intact; if not, get replacements from the manufacturer. Also, replace filters and lubricate what needs lubricating.
You may need to bring in the plants you initially placed outside to enjoy the summer sun when temperatures drop. Before doing so, check the plants for mealybugs, aphids, and other insects. Remove them, so they don’t spread to other plants.
Some people prefer to prune plants before transitioning them back into the house. If so, prune no more than one-third of each, pruning an equal amount off the roots. When repotting, pick a container that’s two or more inches bigger than the current one.
Gradually transition your plants to the new environment, which has different light and humidity levels. For a few days, bring the plants inside at dusk and put them back outside in the morning.
Over a period of 14 days or so, increase the indoor time until the process is complete and they’ve become indoor plants again, finishing the transition before temperatures go down to 45 degrees.
What’s the Cost of Winterizing a Home?
Pipe insulation, as noted earlier, can be relatively cheap, perhaps 50 centers per linear foot.
If a homeowner decides to insulate further, perhaps an attic, costs can range between $1.50 and $7.00 per foot, or a total of $1,700 to $2,100.
On average, an attic insulation installer may charge $70 an hour. If electrical work needs to be done for safe insulation around cables or junction boxes, you may expect to pay $80 an hour.
To hire someone to clean gutters and downspouts, you may pay an average of $119 to $227. An HVAC inspection might cost $325 and up, while the cost to replace an HVAC system could run between $5,000 and $10,000, depending upon the size of the home, among other factors.
What each of these services costs will depend on the locale, what types of repairs or unusual circumstances exist, and so forth.
Additionally, there are websites that allow a homeowner to enter a ZIP code and get an estimate of what a winterizing activity may cost. It makes sense to get quotes from local professionals to get an exact price.
Financing Winterization Projects
Some people pay for their home winterization costs out of pocket, while others may decide to get a home improvement loan. If you’re leaning toward a loan, comparing a home equity line of credit (HELOC) and a personal loan can make sense.
Recommended: How Do Home Improvement Loans Work?
A HELOC uses your home as collateral; for this to be an option, there needs to be enough equity in the property to borrow against it. If there is, and the loan amount required is large, it could make sense to apply for a HELOC.
Interest rates may be lower than those for a personal loan. Also, you can typically take draws from a HELOC up to the loan’s limit.
So if winterizing is coupled with indoor projects done through the cold season, for example, this might be a practical solution. In some cases, interest payments could be tax-deductible.
Recommended: The Different Types Of Home Equity Loans
A personal loan can make sense for recent homebuyers who haven’t built enough equity or for people planning smaller projects. Home winterization often fits into this category.
Applying for and receiving money from an unsecured personal loan is typically much faster than with a HELOC, partly because no appraisal is required for the loan.
Having an excellent credit score and cash flow can help a borrower get approved or receive better loan terms.
The Takeaway
Preparing your home for the harsh weather of winter can be one step you take to protect your house and potentially reduce your energy bills. However, many homeowners don’t take steps to winterize a house due to the upfront costs. Fortunately, there are ways to finance any home improvement projects.
If taking out a home improvement loan for home winterization projects makes sense, then here’s more about the fixed-rate unsecured personal loans offered by SoFi:
• Personal loans have no origination fees and no prepayment penalties.
• Qualifying borrowers may be eligible for loans up to $100,000.
• Applying online can be quick and easy.
• Customer service is available to help seven days a week throughout the process.
Winterize and protect your home with SoFi home improvement loans.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
A clogged toilet that backs up all over your bathroom. A sump pump breakdown that leaves your basement full of water. These scenarios can turn into a huge headache — and your insurance policy likely won’t pay for the damage. That’s why you might want to consider buying water backup coverage.
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What is water backup coverage?
Water backup coverage is an optional type of insurance you can add to a homeowners, condo or renters policy. Because standard home insurance generally won’t cover water damage due to sewer backups or sump pump failure, this add-on coverage — also known as an “endorsement” — can help fill the gap.
As you’re shopping around, you may see other names for this insurance, such as water backup and sump overflow coverage.
What does water backup insurance cover?
Water backup coverage typically pays to repair damage from two scenarios:
Sewers or drains that back up into your home.
Failure or overflow of a sump pump.
The coverage may help with expenses such as buying new personal belongings, replacing damaged carpet or flooring and cleaning up mold.
With this endorsement you can also generally use your policy’s loss of use coverage. This part of your policy pays for additional living expenses if you need to stay somewhere else while your home is cleaned up.
Imagine that the shower in your only bathroom backs up, causing a soggy mess. Your policy may be able to reimburse you for a few nights in a hotel while the pipe is cleared and the damaged flooring is replaced.
🤓Nerdy Tip
Read your policy carefully. This article provides general guidance about what water backup insurance will cover, but the exact wording may vary from one company to another. For example, some companies may specify that damage from a backup is covered only if the water originates from your home.
You’ll usually have a deductible for water backup coverage. A deductible is the amount of a claim you’re responsible for. Your water backup deductible may be the same as your standard policy deductible or a separate amount.
For example, if a sewer backup causes $10,000 worth of damage and you have a $1,000 deductible on your water backup coverage, the insurance company would pay $9,000.
What does water backup insurance not cover?
As with all insurance, water backup coverage has limitations. Below are a few scenarios this endorsement typically won’t cover.
Flooding
Water backup coverage won’t pay for damage related to flooding, including tidal surges, overflowing rivers or lakes, or heavy rain. If you want coverage for these scenarios, you’ll need flood insurance.
Underground water
Water that seeps or flows into your home from underground isn’t covered. For example, this could include a swimming pool that leaks into your foundation or moisture seeping into your home through small cracks.
Negligence
Insurance is designed to cover sudden, unexpected problems, not lack of maintenance. If water damage happens because you’ve neglected to fix an issue that developed over time, your policy generally won’t cover it.
Burst or broken pipes
A standard homeowners, condo or renters policy typically pays for water damage from pipes that suddenly burst. You don’t need a water backup endorsement for this coverage.
Service lines
Say there’s a clog in the sewer line that links your home with your city’s municipal system, and water backs up into your house. Water backup coverage would pay for the damage inside your home. However, if the sewer line itself needed to be replaced, it wouldn’t be covered. Because excavating and replacing the line can get expensive, you may want to consider service line coverage.
Broken sump pump or other appliances
Water backup insurance can pay to clean up damage from a failed sump pump, but it won’t replace the device itself. For that, you could add equipment breakdown coverage to your policy.
If a water heater or other appliance suddenly breaks down, causing water to spew into your home, a standard home insurance policy should cover the damage. But again, it won’t pay to repair or replace the appliance itself unless you’ve added equipment breakdown coverage.
Do you need water backup coverage?
Some insurance agents recommend that all homeowners get water backup coverage. However, it may be particularly worth considering if any of the following risk factors apply to you:
You have a sump pump and/or a basement, especially a finished basement.
You live in an older home with aging pipes.
Your home has nearby trees with roots that could encroach on your plumbing system.
Your community has an older sewer system.
Did you know…
Water and freezing damage is the second most common type of homeowners insurance claim in the U.S., according to 2022 data from the Insurance Information Institute (the most recent data available). The only more common type of claim is wind and hail damage.
Renters don’t need to worry about building damage, but your landlord’s insurance usually won’t pay for your belongings if they’re ruined by a sewer backup. Having water backup coverage can help you replace them and even pay for somewhere else to stay if your apartment is unlivable during cleanup.
How much water backup coverage do you need?
Water backup coverage limits often start around $5,000 per year. The upper limit may go up to the full replacement cost of your house or even more, depending on your insurer. To decide on the right amount of coverage, consider how much you might have to fix or replace.
For example, you might want more coverage if you have a large finished basement with lots of furniture and fixtures. Maybe you have a two-story house with several bathrooms on the second floor — if one of those sinks or toilets backed up, it could potentially damage the floor below, too.
How much does water backup insurance cost?
Depending on where you live and how much coverage you need, water backup insurance can cost $50 to $250 per year. In our sample quotes, we saw rates as low as $39 for $5,000 of coverage.
How to prevent water backups
Following these maintenance tips may help keep water backups from happening in the first place.
Be careful what you put down the drain. Grease, paper products and larger food items can easily clog pipes.
Manage tree roots. Avoid planting anything new near your sewer line, and consider having existing tree roots inspected periodically and cut as necessary.
Install backwater prevention valves. A plumber can put these valves into lower-level drains to keep sewage from coming back into your home.
Flush your plumbing lines regularly. This can help prevent clogs from building up and keep your pipes healthy.
What to do if you have a water backup
Prevent further damage. As soon as you spot the problem, act quickly to keep it from getting worse — for example, by shutting off water or power.
Decide whether to file a claim. If the damage is minimal, submitting a claim may not be worth it. Remember that the insurance company will subtract your deductible from your payout and potentially raise your rates because you’ve filed a claim. You could end up paying more in future premiums than you’d get to repair a minor problem.
Document the damage. If you do decide to file a claim, take photos of damaged belongings, flooring and other items. Reach out to your insurance company promptly so they can assign an adjuster to examine the damage.
Make quick fixes. You won’t want to do major work until your adjuster has done their inspection, but you can do things like getting rid of wet items to keep mold from growing. If sewage is involved, wear protective equipment such as rubber gloves and boots.
As the winter months approach, ensuring your vacation rental is well-prepared for the cold is crucial. Not only does proper preparation protect your property, but it also enhances the comfort of your guests. So whether you are looking to buy and rent out a home for sale in Boston, MA, revamping your rental home in Baltimore, or simply doing some research from the apartment you rent in Colorado Springs, CO, here are nine helpful tips recommended by Rent. and our experts to help with preparing your vacation rental for winter.
1. Plan ahead when winterizing your rental
With colder months fast approaching, one of the most important things that you can do when preparing your vacation rental for winter is to plan ahead. This recommendation comes to us from Jennae England with Heritage North Electric, see below for tips on how to create the best plan of action:
“Different parts of the world experience winter differently; create a list of the kinds of winter weather your vacation rental can experience in that area, as well as how each scenario can affect your heating, lighting, and power. Before winter arrives, make sure everything is clean and functioning properly. Then, make two plans: a prevention plan to keep winter weather from affecting your home, and an action plan for when it does. Be sure your backup plan can be enacted whether someone is there or not!”
Educating yourself on potential issues that could arise with your property will prepare you to act if and when they occur. Make sure that you don’t put off this important first step in preparing your vacation rental for winter!
2. Protect your water system
One very important step in preparing a home for winter is insulating your pipes. Frozen pipes can lead to significant damage and costly repairs.
“To prepare your vacation rental for the winter season, start by ensuring your water system is protected from freezing temperatures — insulate exposed pipes and install a heating tape if needed. Check for any leaks and repair them to prevent water damage. Consider installing a water treatment system like NuvoH2O to reduce mineral buildup, which can cause issues in cold weather. Flush your water heater and ensure it’s operating efficiently to avoid cold water surprises. Finally, provide clear instructions for guests on how to manage the water system during their stay.” Katelyn Keil from Nuvo H2O
Insulating pipes and repairing leaks is vital to keeping your water system in premium condition, especially in unheated areas like basements and crawl spaces. This simple precaution can save you from a winter plumbing disaster.
3. Pest control
As humans, we prefer to have a warm, dry place to retreat to during the winter months. Pests are no different and they can pose a challenge for your vacation rental when temperatures begin to drop. Luckily, The team at Jeff & Katie shared some helpful tips to keep pesky pests at bay:
“One of our favorite winter preparation tips is to place little mesh bags filled with whole cloves or dryer sheets in areas like the back of cupboards, pantry shelves, and under mattresses — anywhere pests might try to get in. The strong scent of cloves and dryer sheets keeps the pests away, and as an added bonus, it makes the house smell fresh, warm, and cozy, without the use of harsh chemicals. This tip is also perfect for those who are winterizing their properties. It keeps pests out and good scents in, so when you open up the property in the spring, it smells amazing!”
Take heed of the recommendations above and make sure that pests don’t get the best of you and your home this winter season.
4. Maintain gutters and roofing
Keeping your gutters and roof in good condition is vital to successfully maintaining your vacation rental during the winter. Penni Parrish from Tierra Antigua Realtyshares that “Clearing gutters and downspouts of leaves and debris to avoid water damage from winter rains” is highly recommended when preparing your rental for winter.
Michele from Matrix Construction also has thoughts on the importance of maintaining the health of your home’s gutters: “In our experience, clearing the gutters is one of the easiest yet most important tasks before winter. Even a small amount of leaves can result in ice dams, potentially causing significant damage to a property’s roof and walls if not addressed. Since gutters are out of sight, it might be easy to overlook this pre-winter task.”
Michele also provided great tips for preparing your roof for temperature drops: “Don’t let a roof problem ruin your winter rental season. We’ve seen firsthand how a minor issue with a roof can turn into a major problem during a winter storm. That’s why we recommend a thorough inspection and quick repairs of leaks or missing shingles before the cold weather sets in. Getting on the roof can be dangerous, so we always advise hiring an experienced contractor like Matrix Construction to conduct a thorough inspection.” Addressing gutter and roof issues proactively will help avoid leaks and costly repairs later on.
5. Check your heating systems
Michele and Matrix Construction’s advice didn’t stop with preparing your gutters and roof; they also shared expert advice for preparing your rental homes’ heating systems: “Over the years, we have learned that a well-maintained heating system is essential for a comfortable winter rental experience.
We always recommend scheduling a maintenance check, changing the filters, and installing a smart thermostat. Smart thermostats allow guests to adjust the temperature to their liking, ensuring comfort and energy savings. If you need to replace your thermostat, smart technology is the way to go.” Ensure that you don’t get stuck in the past: Upgrading to smart technology is a worthwhile investment that can save you money and prevent heating system headaches in the future.
6. Weatherproof windows and doors
Insulation issues can be a hassle to deal with mid-winter, so the best practice is to tackle any potential issues before the winter season hits your vacation rental’s area. “Start by checking the seal on doors and windows to prevent drafts and conserve heat, which helps reduce energy costs,” shared Penni Parrish from Tierra Antigua Realty. Take a look below for more helpful insulation tips from our experts:
“Cold air entering during the winter months can ruin any rental stay. We want to keep the warm air inside and the cold air out all winter long. Sealing gaps around windows and doors is crucial for maintaining warmth and energy efficiency. Our many years of renovation experience have found that adding storm windows and weather-stripping is a simple and effective solution. This simple tip is easy; most homeowners can tackle the project themselves.” Michele from Matrix Construction
In addition to sealing gaps and weather-stripping, for doors, installing a draft stopper can further reduce heat loss and improve insulation. These small investments can lead to significant savings on heating bills and enhance your guests’ comfort.
7. Create a cozy atmosphere
Once the practical aspects of preparing your vacation rental for winter are handled, it’s time to focus on creating a warm, inviting atmosphere for your guests. Start by stocking up on heat saving decorations, warm bedding and amenities like soft lighting. This not only provides warmth but also adds a touch of comfort to the decor:
“My favorite tips for preparing a vacation rental for the winter months are swapping out lightweight bedding for thicker sheets, comforters, and cozy blankets to keep guests warm and comfortable. Also, stocking up on essentials like firewood, ice melt, and weatherproof entry mats can enhance the guest experience during the colder season,” shares Penni Parrish from Tierra Antigua Realty.
Optimizing your home’s heat retention can be stylish! Consider adding heavy curtains, which not only block drafts but also create a cozy ambiance. Plush area rugs help insulate floors, and decorative throw pillows can provide comfort while enhancing your space’s aesthetic appeal. Penni also came through with stellar ideas to elevate your guest experience and stimulate their taste buds: “To add a seasonal treat, Make sure to stock cocoa & apple cider in the coffee and tea bar, bonus points for remembering to add marshmallows for a fun twist!”
We at Rent. also recommend including a few easy-to-make comfort food recipes in your welcome packet. Think along the lines of chili, soup, or stew — easy dishes that can warm up a chilly evening, and don’t forget to consider incorporating seasonal decorations to enhance the winter ambiance. A few tasteful touches, like pinecones, evergreen branches, or subtle holiday decor can create a welcoming vibe without feeling overdone.
8. Promote indoor activities
In the vein of enhancing comfort in your vacation rental, encourage your guests to enjoy indoor activities during their stay. Stock your rental with games, puzzles, or a selection of good books. Providing a cozy reading nook or a space for board games can make your rental feel like a home away from home. Consider sharing local recommendations for winter activities in your welcome packet, like nearby indoor attractions or cozy cafes, to keep guests engaged.
8. Prevent damage to vacant rentals by winterizing
Not every vacation rental is utilized by guests during the winter, but there are still some important things to keep in mind when locking up your property before cold weather hits. Adrian Vigil and the team at Top Notch Plumbing, Heating & Air “emphasize the importance of winterizing your vacation rental to prevent costly damage. They recommend shutting off the water main and draining all lines to avoid frozen pipes. Keeping spigots open allows any remaining water to expand without causing damage.
Additionally, setting the thermostat to 50 degrees and sealing crawl spaces can help maintain a safe temperature and keep cold air out. These steps will protect your property during freezing conditions. Learn more about winterizing your vacation rental at Top Notch Plumbing.” Draining pipes and insulating crawl spaces are often overlooked when winterizing a rental, but they play a critical role in protecting your home. Sealing any vents to prevent cold air from entering and adding insulation boards or blankets to your crawl space will not only help keep your pipes at a safe temperature, but also contribute to overall energy efficiency in your vacation rental during the winter.
Get started preparing your vacation rental for winter today
Winterizing your vacation rental involves a mix of practical maintenance and thoughtful touches that enhance comfort. By insulating pipes, sealing crawl spaces, weatherproofing your property, and adding cozy decor, you’ll create a welcoming atmosphere that keeps guests coming back year after year. A little preparation goes a long way in ensuring that your rental is not just a place to stay but a cozy retreat during the colder months. So, gear up for winter and make your vacation rental a sought-after destination!
If you’re planning to purchase homeowners insurance, or renew your policy, your insurer may ask you to get a “4-point” inspection — one that assesses the home’s electrical, plumbing, roofing, and HVAC systems.
Insurers typically use this type of inspection, which is different from a standard home inspection, to determine how much risk they might assume if they issue a policy on an older home, or a home in an area that’s more vulnerable to natural disasters. But it can also be a useful tool for buyers and owners who want to identify potential safety hazards or other problems.
Read on for a look at how to prepare for a 4-point inspection, what you can expect the inspector to look for, and the steps you might take if the inspection raises some red flags.
4-Point Inspection vs Full Home Inspection
Though there may be some overlap between 4-point inspections and full home inspections, each type of evaluation has a different primary purpose.
What Is a Full Home Inspection?
A full home inspection is a common part of the home-buying process. It is important because it could reveal a significant flaw in the property that might make a potential buyer want to renegotiate the home price, which could in turn affect the size of their home loan. Here’s how it works:
A licensed inspector provides a top-to-bottom evaluation of the entire property’s condition, including structural elements, major systems, and appliances. Homebuyers are then alerted to problems both big and small — from a leaky roof or moldy basement to a cracked window pane. Though a full inspection is generally not required by lenders, most real estate professionals recommend getting one. A full home inspection can cost around $300 or $400, but the price could be much higher for a larger home. The inspection may take two to three hours, or more, depending on the size of the property.
What Is a 4-Point Inspection?
A 4-point home inspection is a more focused inspection that is sometimes required when an insurance company wants to be sure a home meets safety standards and is free of problems that might cause claims down the road. A 4-point insurance inspection isn’t always a required part of the home-buying process, but an insurer may ask for it if the home is older, or if it’s in an area that’s prone to flooding, high winds, or earthquakes. The time it takes to do a 4-point inspection, and the cost, are typically lower than a full inspection, but can vary based on the location, size, and age of the home.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
Questions? Call (844)-763-4466.
Components of a 4-Point Inspection
A 4-point home inspection covers your home’s four major components:
Roof Inspection
The inspector will visually survey the roof’s condition and overall stability. This includes looking for signs of age, loose shingles or guttering, damaged materials, inadequate attic ventilation, and leaks inside the home that could indicate a problem. Insurance companies want to avoid paying expensive roof replacement costs, so the inspector also will check on the age of the roof, what it’s made of, and the shape (flat, gable, hip, etc.) to help determine how it will hold up.
Electrical System Inspection
Because electrical problems can be a fire hazard, the inspector will look at the home’s electrical panels, circuits, wiring, switches, and outlets to be sure everything is up to code and in good condition. If any part of the system is dated or damaged, the insurance company may require that it be repaired or replaced before issuing a homeowners policy.
Plumbing System Inspection
This part of the inspection can include a check of the faucets, sinks, toilets, drains, water heater, showers, and tubs, as well as a look at the kind of pipes used in the home. Any signs of leaks or other water intrusion into the home could be a sign that the plumbing has deteriorated, is damaged, or wasn’t properly installed. If the pipes are made of older materials (such as galvanized steel or polybutylene), they may have to be replaced.
HVAC System Inspection
The inspector doing the 4-point insurance inspection also will test the heating, ventilation, and air conditioning (HVAC) system to be sure everything is functioning properly. This can include assessing how well each piece of the home’s climate control system has been maintained, how old the separate units are, and how much longer each can be expected to last. The inspector also may monitor the temperature and humidity in various rooms, check the duct work, check for proper airflow, and look for water damage or leaks.
Preparing for a 4-point Inspection
Your role in preparing for a 4-point home inspection will vary depending on whether you’re already the homeowner (selling your property or renewing your insurance) or a potential homebuyer (looking for coverage on a home you plan to purchase). If you’re a homebuyer, you can expect to:
• Find and hire a qualified inspector. (The rules for who can do a 4-point inspection for insurance purposes vary by location.)
• Schedule a time when the inspector can access the home (preferably when you can be there, too).
• Research common home-buying red flags.
• Pay for the inspection.
If you’re the homeowner, on the other hand, you’ll have to do all of the above, plus make sure the inspector has clear access to the necessary areas of your home. You should also be ready to provide documentation that shows the age and maintenance schedule for the systems and structures to be inspected. You also may choose to:
• Fix or replace any missing or damaged shingles on your roof, and repair any problems inside or out. Repair any leaky pipes, slow-draining sinks, etc., and clean up signs of water damage.
• Repair or replace any electrical issues, such as a dated electrical panel or wiring, damaged or dated outlets, exposed or loose wiring, etc., and bring everything up to code.
• Run your heater and air conditioner to be sure they work properly, replace dirty filters or damaged parts, and consider getting air ducts cleaned.
Recommended: The Ultimate Home Inspection Checklist
Hiring a Qualified Inspector
The requirements for home inspector certification vary by location, so it’s important to be sure the inspector you hire has the proper credentials for your area. Friends, family, or your real estate professional may be able to give you recommendations. You also can check out online reviews and ratings. Once you’ve narrowed down your list of candidates, you can contact them for more information about their:
• Licensing and insurance
• Experience
• References
• Availability
• Cost and payment options
• Inspection process and what guidelines they follow
Interpreting a 4-Point Inspection Report
Inspection reports typically are divided into four sections (roof, electrical, HVAC, and plumbing) with detailed descriptions of what the inspector found, photos for visual backup, and checklists and/or tables further noting the age and conditions of the various systems. Inspectors also may include their recommendations regarding repairs or replacements.
After the 4-Point Inspection
A home either passes or fails a 4-point inspection — there’s no in-between or letter grade. If the home fails the inspection, it’s usually because the major components are outdated and/or showing significant wear and tear.
Though an insurer won’t necessarily cancel a homeowner’s current policy immediately upon seeing a failed report, it may require appropriate upgrades and repairs before renewing coverage or offering coverage to someone who plans to purchase the property. The results of the report may also affect the cost of insurance. (Because the inspection and appraisal are two separate parts of the home-buying process, however, a failed inspection won’t affect the appraised price or lead to an appraisal gap.)
If you’re hoping to buy a home that failed a 4-point inspection, you may have a few options to consider:
Negotiate with the Seller
You can talk to the seller about lowering the price on the home or providing a repair allowance so you can make the necessary fixes.
Make Recommended Repairs
You could see if the seller will make the required repairs, then get the inspector and insurance company to sign off on the work before moving forward with the deal.
Obtain Insurance Coverage
You still may be able to get coverage on the home if you can get the repairs done during a time period specified by the insurer. Or you can see if a different carrier will offer you a policy.
If the home requires significant repairs or updates, you may be able to purchase a special policy (such as builder’s risk insurance or vacant property insurance) with a higher premium. When the work is complete, you can apply for a standard home insurance policy.
Recommended: How to Get a Mortgage Loan
The Takeaway
If you own or are in the process of buying a home, an insurance company may require a 4-point inspection before providing a homeowners policy. This type of inspection can help insurers control their risk, because it’s designed to spot current and potential problems in four of the home’s major components: the roofing, plumbing, electrical, and HVAC systems.
Because mortgage lenders typically require that borrowers carry a sufficient homeowners policy, this type of inspection can be an important part of the home-buying process. And though it may seem like just one more hassle, it can also help homebuyers and homeowners avoid safety issues and expensive repairs in the future.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
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FAQ
How long does a 4-point inspection take?
A 4-point inspection could take anywhere from a half-hour to two hours or more. The time and cost will depend on the size, age, and condition of the home.
Can I attend the 4-point inspection?
Yes, if you’re paying for it, you can and should try to attend the 4-point inspection (although it isn’t required).
What happens if the property fails the inspection?
If the property you own or hope to buy fails the 4-point inspection, you may still be able to obtain homeowners coverage — though you or the owner will likely have to make necessary repairs within a timeframe specified by the insurance company.
Photo Credit: iStock/Hispanolistic
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Thanks to high demand and inflation, the cost of home repairs has been on the rise in recent years. In 2023, the average household spent $2,458 on maintenance and $1,667 on emergency repairs, according to Angi’s State of Home Spending Report. The report also found that total spending across home improvement, maintenance, and emergency repairs increased 6% compared to 2022.
The most common home repairs include the usual suspects: electrical, plumbing, HVAC, water damage, and termite damage. Keep reading to learn more about these issues and the cost of repair or replacement, so you can be prepared when reality bites.
Estimated Cost of the Most Common Home Repairs
Low-cost preventive measures — like cleaning your gutters or getting your heating and cooling systems serviced annually — can help keep common home repair costs down. But even with the best preparation, surprises (like a busted pipe or roof leak) happen, and when they do, you can be on the hook for thousands of dollars. Whether you’re a new or longtime homeowner, it’s a good idea to plan for — and budget for — home repairs.
Below is a roundup of the most common home repairs and average costs.
Recommended: How to Pay for Emergency Home Repairs
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Foundation Repair
A number of different issues can occur with foundations, some of which are more serious (aka, costly) than others. Among the most common problems are foundation cracks, which can be caused by house settling or changes in soil pressure around the home. Cracks can lead to water damage or cause the walls in your foundation or home to bow. Foundations can also begin to sink, due to changing weather patterns, nearby tree roots, or erosion.
Since the foundation is the footprint of your home, repairs can be complicated and expensive. According to Angi, foundation repair costs can range anywhere from $2,196 to $7,921.
Average cost of foundation repair: $5,056
Electrical Issues
While there are many home repairs you can safely DIY, electrical issues and wiring are generally best left to professional electricians. Working with live wires can be dangerous and faulty electrical work can be a significant fire hazard. Some signs you may need to call an electrician include:
• Burning smell coming from an outlet
• Buzzing or sizzling noises coming from an outlet
• Flickering lights
• Outlets feel hot to the touch
• You have 2- rather than 3-prong outlets
• Circuit breaker continually trips
• Appliances spark when plugged in
Depending on the length and complexity of the job, the cost of hiring an electrician ranges between $163 and $535. Installing a new outlet can run $200 to $300, for example, while replacing a breaker panel can cost anywhere from $520 to $2,120.
Average cost of electrical repairs: $348
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Roof Repair
Your roof protects your home from the elements, so it’s important to keep it in top condition. If you notice any damage or signs of wear and tear, you’ll want to address them sooner rather than later. This can help prevent small problems from becoming serious and expensive. Signs that your roof may be compromised include broken, cracked, curling, or missing shingles, and any interior signs of water damage (such as dark spots or discoloration on walls or ceiling and/or mold or rotting wood in the attic).
The cost of a roof repair will depend on your home’s location, roofing material, size of your home, and the type of roof. On average, costs run between $391 and $1,901. By contrast, a full roof replacement can run between $5,900 to $12,900. Due to the significant price difference, you would generally only invest in a new roof if the damage to your existing roof is extensive or the roof is near the end of its life.
Average cost of roof repairs: $1,133
Repair or Replace a Water Heater
Due to mineral buildup and the routine breakdown of components, water heaters do not last forever. Depending on how extensive the repairs your water heater requires, you can be on the hook for a new unit entirely. And if you’ve ever taken a cold shower in the middle of winter, you know this is one repair that is essential to your quality of life.
On average, homeowners spend anywhere from $221 to $980 on water heater repairs. Your actual bill will depend on the cost of the part needed for the fix, how much your local water heater professional charges for labor, and the length of the job. Where you live and where the water heater is located in your home can also impact costs.
Average cost of water heater repairs: $600
Water Damage
Water damage is fairly common. It can result from a crack in an old pipe, a leaky roof, an unusually strong storm, or sewage backup. To prevent mold growth and further damage, it’s best to fix the issue and clear out moisture as soon as you spot it.
Water damage restoration can involve replacing wallboard, flooring, and/or ceilings, as well as ensuring that no mold spores are left behind to spread once the repairs are complete. Two important factors influencing price are the square footage affected and the type of water (i.e., whether it’s clean or has been contaminated with potentially harmful substances). The cost of water damage restoration generally ranges between $1,300 and $5,600.
Average cost to fix water damage: $3,300
Replacing Pipes
Replacing older pipes is a common home repair often needed after a home inspection. Common problems include dated construction materials with a known problem in their manufacturing, signs of corrosion, clogs, and leaks. And because pipes run behind walls and underground, repair costs often include patching up interior holes and dug-up yards.
The good news is that not all leaks, burst pipes, and signs of corrosion require replacing large amounts of plumbing. Often, a plumber can replace a small section of the pipe affected by the damage. The cost to install pipes for a repair ranges from $370 to $2,108, though it can run higher if the damaged pipes are difficult to access.
Average cost to install pipes: $1,237
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Septic System Repair
A septic tank contains and filters household wastewater. If it is damaged or not functioning properly, it’s important to deal with the problem quickly — otherwise, you could be dealing with a smelly and costly mess. Sewage backups can occur when the septic tank becomes clogged or full, there’s a problem with devices within the tank, or there’s a blockage in the home’s main drain line leading to the tank.
Depending on the type of repair, tank size, permits, and other factors, the cost of a septic tank repair runs, on average, between $630 and $3,035. A small fix like repairing a septic tank lid could cost less ($150 to $500); but if you need to replace the tank, you could be looking at a bill as high as $9,500.
Average cost to repair a septic system: $1,831
Heating or Air Conditioning Repair
Your home’s HVAC (which stands for heating, ventilation, and air conditioning) system plays a key role in keeping your home comfortable to live in. Though there are many different types of HVAC systems, they generally all work by using energy to heat or cool the air to a desired temperature. The system may also add/remove moisture and filter your home’s indoor air.
An HVAC system typically has two main components: a heater (which could be a furnace, boiler, or heat pump) and an air conditioning (AC) unit. The type of system you have and the component that’s broken will significantly influence the cost of repairs. For example, an AC system repair can run anywhere from $450 to $2,000, while a furnace repair tends to run between $130 and $1,200. On average, homeowners spend between $130 and $2,000 on HVAC repairs.
Average cost to fix a heating or air conditioning system: $350
Mold Removal
Mold develops inside homes as a result of moisture and can lead to health problems. Signs that you may have a mold problem include:
• Musty odor in a specific area
• Discoloration on the walls
• Peeling, cracking, or warping of floors or walls
• Leaks or water damage
• Darkening around tile grout
• Worsening of allergy symptoms
While you may be able to remove small amounts of mold yourself (provided you’re certain the mold isn’t toxic), often the best option is to hire a mold remediation professional.
The cost for mold removal will vary widely depending on where it is located in your home. Mold growth in hard-to-reach areas, like drywall or your HVAC system, generally costs more to remediate since it can require more time, materials, and labor. The size of the infestation and the type of mold that is growing also influence costs. On average, mold removal runs between $373 and $7,000.
Average cost of mold removal: $2,362
Termite Damage
The problem with termites is that they literally eat away at your house. They can also eat through your budget: The cost to repair termite damage can range anywhere from $1,000 to $10,000 or even more.
Generally, the longer termites chew on the wooden structure of your home, the more costly the repair will be, so it’s key to recognize — and deal with — any signs of a termite infestation early. If you catch a termite problem early, for example, you may only need to replace a few damaged boards or joists, which can run from $250 to $1,000. If the problem goes on for a while, however, you may need to replace damaged walls, framing, or floors — at a cost of $1,000 to $3,000. Worst-case scenario: Termites do enough damage to your home’s infrastructure (like beams or load-bearing walls) that it becomes structurally unsound. A major termite repair job can run from $3,000 to $10,000-plus.
Average cost to repair termite damage: $3,000
Average Cost of Home Repairs
Trying to predict — and budget for — home repairs can be challenging. However, there are several rules of thumb that can help homeowners:
• The 1% Rule. One common guideline is to set aside approximately 1% of your home’s value annually for home maintenance. So if your home is worth $500,000, you’d want to have $5,000 tucked away in savings to cover general upkeep and repairs for the year.
• The Square Foot Rule. Since a larger home typically costs more to maintain than a smaller one, another formula is to use the square footage of your home to estimate maintenance and repair costs. With this approach, you set aside $1 for every square foot of livable space. So if your home is 2,300 square feet, you would want to have $2,300 in savings earmarked for home repair costs.
• The 10% Rule. With this rule of thumb, you put aside 10% of all your main monthly expenses (such as mortgage, taxes, and insurance) for your monthly home maintenance budget. For example, if your mortgage is $1500/month, taxes are $300/month, and insurance is $150/month (a total of $1950), your budget for home maintenance would be roughly $195 per month or $2,340 a year.
If you don’t have enough savings to cover the cost of a necessary home repair, there are financing options, including home equity lines of credit (HELOC) and credit cards (though this can be an expensive choice).
You can also use a personal loan to cover the cost of home repairs or improvements. Available through banks, credit unions, and online lenders, this type of loan (sometimes called a home improvement loan) typically doesn’t require any type of collateral or home equity. However, you usually need good to excellent credit to qualify.
The Takeaway
It’s tough to predict the cost of home repairs. Different budgeting standards suggest putting aside 1% of your home’s value or $1 per square foot annually. In 2023, the average household spent $2,458 on maintenance costs and $1,667 on emergency repairs. Among the priciest home repairs are major foundation work (up to $7,921), roof replacement (as much as $12,900), and septic tank replacement (which can run $9,500). Even expenses like fixing termite damage or replacing a broken water heater can all but consume your savings.
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SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Looking for a low-stress job that pays well? This list has you covered. These 10 jobs offer good pay without the stress of a typical 9-5. Perfect for those seeking flexible hours or needing low-stress work for health reasons. Find a job that fits your lifestyle and start enjoying a better work-life balance.
Massage Therapist
A massage therapist helps people relax by working on their soft tissues and joints. They need to know anatomy and medical procedures and often work in calm places like spas or clinics. This job is low-stress and pays well and is easy to get training..
Electrician
An electrician is a skilled worker who only needs a few years of training. After an apprenticeship, they can work with electrical tools and circuits. This job pays well and doesn’t require many qualifications.
Librarian
Librarians help people find information and manage collections. They work in a calm environment and often have time to read. This job is low-stress and pays well, making it a great choice for those who love books.
To learn more: 50+ Best Low Stress Jobs After Retirement
Dental Hygienist
A dental hygienist cleans teeth and teaches patients about oral hygiene. With a two-year degree and state licensure, this low-stress job offers a good work-life balance and pays well.
Virtual Assistant
A virtual assistant provides remote administrative, creative, or technical help. Working from home, they avoid office politics and can enjoy a flexible schedule. Very popular for stay-at-home moms.
To learn more: 14 Best Virtual Assistant Jobs with No Experience Required
Makeup Artist
A makeup artist enhances clients’ appearances with cosmetics. They work in salons or as freelancers in the beauty, fashion, and entertainment industries. Basic communication skills are needed, but no formal education is required. Just style!
To learn more: Best Online and Side Hustles for College Students: Ideas for Fast Money
Plumber
A plumber installs and repairs pipes and fixtures, ensuring water flows where needed. With apprenticeship training, plumbers can enjoy a well-paying job without a degree.
Photographer
A photographer captures moments and memories. Good skills in composition, lighting, and timing are essential. Training in art and design helps, but a degree is not needed. This job has good demand and many niches to seek.
To learn more: 25 Best Jobs for Moms With No Degree: Balancing Family and Career
Solar Photovoltaic Installer
Solar photovoltaic installers set up solar panels on buildings. They need to understand electrical wiring and troubleshooting. Due to a labor shortage, this job pays well and is low-stress if you like climbing on roofs.
To learn more: 43 Best Side Hustles for Men to Make Money
Radiologic Technologist
Radiologic technologists use imaging techniques like X-rays and MRIs to help diagnose and treat diseases. They work closely with doctors and need good communication skills. An associate’s degree is required.
Find More Low Stress Jobs that Pay Well
Discover more low-stress jobs that pay well without needing a degree. These jobs offer minimal stress and plenty of growth opportunities, making them great choices for a new career.
To learn more: Best 30 Low-Stress Jobs That Pay Well Without a Degree
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Stand-up paddleboarding. Kayaking. Biking. Skiing. Seattleites love our outdoor activities, but all this equipment takes up a lot of space. We tapped local stores, outdoor enthusiasts and designers of stylish storage solutions for the best ways to store your gear — and creative ways to show it off in the process.
Safety first
REI Co-op retail sales specialist Celia Binder says there are several factors to consider when storing recreational gear: safety, aesthetics, ease of use, cleanliness and environmental impacts.
“Is the gear stored securely? Using the appropriate hardware or storage accessories to organize or display gear is important,” Binder says. So is practicality.
“Is it convenient to transfer the gear from its storage place to being used?” she asks. Make sure the storage space doesn’t keep you from using it outside.
Think about what happens if the gear comes into the house dirty.
“A bike may look great hanging next to the TV, but would you be OK with putting it there if it’s muddy?” Binder asks. “A wooden paddle may look great next to the couch, but if it’s often wet when it comes inside, there is probably a better spot for it.”
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Be sure to protect your equipment from environmental impacts. Don’t store tents, camping chairs or other fabrics in direct sunlight because UV rays degrade fabrics, Binder cautions. Avoid repeated, large temperature fluctuations, which can warp or crack your gear. Basements and attics have extremes, she says, with moisture and high heat.
“In general, a cool, dark, dry space is ideal for most gear storage,” she suggests.
Storing boards
Tiara and Jacob Zvonar opened Basecamp Board and Bike in Seabrook, Wash., in February. Tiara has been paddleboarding for 15 years. One of the challenges with boards, she says, is they’re quite large and tough to store.
“Best practice is to have your board off the ground or standing on a foam board or carpet to absorb water and prevent further wear and tear,” she says.
She likes Store Your Board’s free-standing G-Surf SUP storage rack for higher capacity storage outdoors. “Whether it’s personal or professional, you want to take care of your goods,” Tiara says.
Kristen Sill, Store Your Board’s customer experience lead, says the G Rack series is very popular in summer.
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“A lot of people are looking for things on their dock. The G rack goes directly on the dock to store your kayak and paddleboards right there so you can take them into the water,” Sill says. “Find something that protects and secures your gear and displays it well, then take it off the rack and go.”
Mountain to Sound Outfitters in West Seattle recommends a portable storage rack for boats, kayaks and canoes. The Suspenz universal portable boat stand folds up when not in use and can be toted along for washing and rigging. There’s also a portable stand for SUPs.
Gear as décor
For indoors, Tiara recommends Board Huggers surfboard wall hangers for a midcentury modern look that can layer into any décor. Woodworking artist and surfer Alejandro (Alex) Valcarcel makes these by hand from hardwoods like American walnut. His motto is, “Instead of hiding your boards away, put them on display.”
“For seamless presentation in store or home,” Tiara loves the “floating bike” look of Store Your Board’s minimalist bike storage wall hanger, which costs less than $20. Twonee’s wood bike wall mount integrates storage with your décor. Made of 100% alder wood, it’s painted blue and has a shelf to hold books, a potted plant or your helmet.
Binder likes to combine gear, maps and photos in one wall space.
“We often use gear in places that we love — a familiar nook of a city, far off in the mountains or anywhere in between,” she says. Showcasing the places you use your gear ties it together visually.
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“Framing gear with a minimal box or frame is a great way to keep the focus on the gear itself,” Binder says. “REI uses a lot of minimalist, wooden boxes and frames to showcase vintage gear in our stores. Even the best cared-for gear has a finite life. When it’s time to retire something, there are lots of creative ways to keep it in use. Old skis can be built into chairs. Retired climbing ropes can be woven into doormats. The options are endless!”
Simple solutions
Peg boards are another useful tool for organizing and displaying your collection of outdoor reactional items.
“The board itself can be painted or left natural, then pegs of various sizes sort all kinds of gear — water bottles, headlamps, climbing hardware, camp cooking gear and more,” Binder says. “This is also a great way to have a quick look at the gear you have,” rather than hunting down pieces throughout your home.
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Ben Mawhinney is co-founder of Wonderland Gear Exchange in Seattle’s Fremont neighborhood. He says they’ve had to create “intuitive, efficient displays that are highly flexible because we never know exactly what gear people are going to bring us each week.” The store’s multiuse storage systems include racks that hold skis in the winter and bikes in the summer. Wonderland also uses materials like metal pipes, 2-by-4 and clamps that are easy to adjust. These in-store ideas can easily be replicated at home.
“Our sneaky recommendation: search for ‘raw steel’ metal gridwall panels (to avoid the shiny chrome ones), which are industrial-chic,” Mawhinney says. “You could use hooks to store packs or helmets, and then you could brighten it up by weaving a colorful, retired climbing rope through it or by adding hanging plants.”
Adjustable Uttyhooks provide easy, portable storage with a small profile. They can hang from a tree branch, ski rack or anywhere in your home to keep your belongings dry, accessible and off the ground. Binder recommends nylon daisy chains (a piece of climbing gear) and carabiners as another versatile option.
Get creative
Sill says people always reach out with funny questions about what exactly they can store.
“A lot of people like to store their lily pads from boating on a hoist,” pulley system, she says. “Outdoor explorers use our storage racks inside their cars to store chairs or sports equipment. Someone made their outdoor shower with our vertical surfboard rack!”
The Hi-Port ceiling rack is intended for kayaks, but one customer used it to hold their iguana cage and made a whole home on the ceiling for their reptile.
Remember the why
Jason Sawyer of nature-inspired Seattle furniture and design studio SML says, “I think that the way we display our gear really says a lot about the love we have for the sport or activity in which we engage.”
Sawyer showcases favorite old skateboards, snowboards, bikes, canoes and collateral in his wood shop.
“All of these items are like a visual representation of who I am as a person,” he says. “I find all of them inspirational. They remind me to get out and do the things that bring me joy.”
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Expert tips
Regardless of what you’re planning to store or display, be sure to measure everything out beforehand and think about the space you have.
“People don’t realize until after that the kayak doesn’t fit the space well,” Sill says. Because racks hold heavier items in general, it’s important to install into studs and consider stud spacing.
Here are some additional tips from Store Your Board to get started:
1. Dimensions: Measure length, width and height of your gear carefully, especially if you’re hanging your bikes vertically so they’re off the ground. “Consider the user: who is going to use it, who will be taking it on and off?” Sill says. Match it to their size and height.
2. The wall: Use a stud finder. Most racks are going to need to be installed on studs to safely hold the weight they are rated to hold. Many items are adjustable, but some require standard 16-inch stud spacing. For adjustable wall racks, determine the best distance to space the arms by your stud spacing and the length of your gear. Aim for an even distribution of weight on the rack. In most situations, you can divide the length of your board or kayak in half and use that number to space apart the arms. (Example: if your board is 10 feet, space your arms 5 feet from each other so the majority of the board is between the arms, with only 2.5 feet hanging off on either side.)
3. Material: Metal studs can be challenging. Consider using free-standing racks instead.
4. Surfaces: Concrete and brick require specific hardware, like a Tapcon screw. Ensure the concrete anchors are rated to hold the maximum weight the rack will be supporting.
Embarking on a home renovation to transform your living space is an exciting endeavor. Home improvements are also an investment that can significantly increase the value of your property, so it’s important to track expenses to be prepared for capital gains tax when you sell your home. Tracking home improvement costs can also help homeowners stick to a budget and ensure a greater return on investment.
Let’s take a closer look at how to track home improvement costs, which upgrades qualify for tax purposes, and options for financing a home renovation.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
Why Track Home Improvement Costs?
Amid all the work and logistics that goes into renovations, tracking home improvement costs might not feel like a high priority. However, having documented home improvement costs can help reduce potential capital gains tax when it’s time to sell your home.
The IRS allows qualifying home improvement costs to be added to the original purchase price of the property, known as the cost basis, when calculating capital gains on a home sale. The basis is subtracted from the home sale price to determine if you’ve realized a gain and subsequently owe tax. But by adding home improvement expenses to your cost basis, the profit from the sale that’s subject to taxes decreases — lowering or even potentially exempting you from property gains tax.
Besides home improvements, other factors that affect property value, like location and the current housing market, could make a property sale subject to capital gains tax.
Here’s an example of how capital gains tax on a home sale works: A married couple that purchased a home for $200,000 in 2001 and sold it for $750,000 in 2024 would have a $550,000 realized gain. Assuming that the sellers made this home their main residence for two of the last five years, they’d be able to exclude $500,000 of the gain from taxes. The remaining $50,000 would be taxed at 0%, 15%, or 20% based on the sellers’ income and how long they owned the property.
However, the sellers spent $70,000 on home improvements during their 23 years of homeownership, so the capital gains calculation would be revised to: $750,000 – ($200,000 + $70,000) = $480,000. Tracking home improvement costs in this example exempted the sellers from needing to pay capital gains taxes.
Note that single filers may exclude only the first $250,000 of realized gains from the sale of their home. Eligibility for the exclusion also requires living in the home for at least two years out of the last five years leading up to the date of sale. Those who own vacation homes should note that the IRS has very specific rules about what constitutes a main residence. 💡 Quick Tip: A Home Equity Line of Credit (HELOC) brokered by SoFi lets you access up to $500,000 of your home’s equity (up to 90%) to pay for, well, just about anything. It could be a smart way to consolidate debts or find the funds for a big home project.
Qualifying vs Nonqualifying Improvements
The IRS sets guidelines that determine what home improvements can be added to your cost basis for calculating capital gains tax. Thus, not every dollar spent on sprucing up your home’s curb appeal or living space needs to be tracked for tax purposes. Generally, tracking costs is a good idea for any home improvements that increase your home’s value and fall outside general repair and upkeep to maintain the property’s condition.
Qualifying Improvements
According to the IRS, improvements that add value to the home, prolong its useful life, or adapt it to new uses can qualify. This includes the following categories and home improvements:
• Home additions: Bedroom, bathroom, deck, garage, porch, or patio
• Home systems: HVAC systems, central humidifier, central vacuum, air/water filtration systems, wiring, security systems, law and sprinkler systems.
• Insulation: Attic, walls, floors, pipes, and ductwork
• Plumbing: Septic system, water heater, soft water system, filtration system
It’s also important to track any tax credits or subsidies received for energy-related home improvements, such as solar panels or a heat pump system, since these incentives must be subtracted from the cost basis.
Recommended: How to Find a Contractor for Home Renovations and Remodeling
Nonqualifying Expenses
Owning a home requires routine maintenance and occasional repairs — think fixing a leaky pipe or mowing the lawn. And the longer you own your home, the greater the chance you reapproach past home improvements with a fresh design or modern technologies. The IRS considers regular maintenance and any home improvement that’s been later replaced as nonqualifying costs.
For instance, a homeowner could have installed wall-to-wall carpet and later swapped it out for hardwood floors. In this case, the hardwood floors would qualify, but not the carpeting.
Recommended: The Costs of Owning a Home
How to Track Your Costs
Developing a system for tracking home improvement costs depends in part on where you are in the process. Here’s how to get track home improvement costs before, during, and after a renovation project.
Before You Renovate
The average cost to renovate a house can vary from $20,000 to $80,000 based on the size of the home and type of improvements. Given this range in cost expectations, it’s helpful to create an itemized budget that estimates the cost for each improvement. It’s hardly uncommon for renovations to take more time and money than expected, so consider budgeting an extra 10-20% for the unexpected.
Your itemized budget can be leveraged for tracking home improvement costs once the project starts. Simply plug in the completion date, cost, and description for each improvement, and keep receipts, to itemize the expense as it’s incurred.
Recommended: How to Make a Budget in 5 Steps
Keep Detailed Records
Tracking home improvement costs goes beyond crunching the numbers. The IRS requires documentation to adjust the cost basis on a property. As improvements are made, catalog contractor and store receipts and take pictures before and after the work is done to document the improvements for your records. Store these records digitally in a secure and accessible location; the IRS recommends keeping records for three years after the tax return for the year in which you sell your home.
Catch Up After the Fact
Tracking home improvement costs after the work has been completed is doable, but it requires more effort. If your renovations required any building permits, your municipality should have records on file.
For other projects, start by searching your email for receipts and records can help find a paper trail and track down documentation. Reach out to contractors you worked with for copies of missing receipts or invoices. If you paid with a check or credit card, you can browse through your previous statements or contact the bank for assistance.
Consult a Tax Pro
Taxes are complicated. If you have any doubts about what improvements qualify, consult a tax professional for assistance. Homeowners who used their property as a home office or rented it for any duration could especially benefit from a tax pro. Any property depreciation that was claimed in previous tax years may need to be recaptured if the home sale price exceeds the cost basis.
Home Improvement Financing Options
Renovations and upgrades to your home can be expensive. Many homeowners use a combination of savings and financing to pay for home improvements.
• HELOC: A Home Equity Line Of Credit lets homeowners tap into their existing equity to fund a variety of expenses, such as home improvements. With a HELOC, you can take out what you need as you need it, rather than the full amount you’re approved for, which is often 75%-85% of your home’s value. You only pay interest on the amount you draw.
• Cash-out refinance: Some owners take out a new home loan that allows them to pay off their old mortgage but also provides them with a lump sum of cash that they can use for home repairs (or other expenses). How much cash you might be able to take will depend on the amount of equity you have in your home.
• Personal loan: An unsecured personal loan could be a good option for quick funding that doesn’t require using your home as collateral. The interest rate and whether you qualify are largely based on your credit score.
• Credit card: Financing a home improvement with a credit card can help earn cash back or rewards on your investment. However, these perks should be weighed against the risk of higher interest rates. If using a 0% interest credit card, crunch the numbers to ensure you can pay off the balance before the introductory offer expires. 💡 Quick Tip: You can use money you get with a cash-out refi for any purpose, including home renovations, consolidating other high-interest debts, funding a child’s education, or buying another property.
The Takeaway
Tracking home improvement costs from the start can help stick to your project budget and lead to significant tax savings when it comes time to sell your property. A HELOC is one way to fund home improvements, and may be especially useful to borrowers who aren’t sure how much money they will need for home projects. If you’re unsure whether a home improvement qualifies under the IRS rules around capital gains tax on home sales, consult a tax professional.
SoFi now offers flexible HELOCs. Our HELOC options allow you to access up to 95% of your home’s value, or $500,000, at competitively low rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
Photo credit: iStock/Cucurudza
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
²
To obtain a home equity loan, SoFi Bank (NMLS #696891) may assist you obtaining a loan from Spring EQ (NMLS #1464945).
All loan terms, fees, and rates may vary based upon individual financial and personal circumstances and state.
You may discuss with your loan officer whether a SoFi Mortgage or a home equity loan from Spring EQ is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit brokered through SoFi. Terms and conditions will apply. Before you apply for a SoFi Mortgage, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and loan amount. Minimum loan amount is $75,000. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.
SoFi Mortgages originated through SoFi Bank, N.A., NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org). Equal Housing Lender. SoFi Bank, N.A. is currently NOT able to accept applications for refinance loans in NY.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
HousingWire Editor in Chief Sarah Wheeler sat down with Jason Cave, former deputy director at the FHFA where he ran their FinTech Office, to talk about where mortgage tech is falling short, and what the government should do to help.
Sarah Wheeler: What led you to leave FHFA for the private sector?
Jason Cave: I spent 30 years in the government — 27 at FDIC and three at FHFA. It was the right time to make a change and I figured it would be neat to work on some of the issues with the fintechs. There are a lot of banking challenges, just like with mortgage, and it felt like a good time to be part of the solution. So, I’ve been helping companies navigate the D.C. landscape, and just helping improve engagement. And it’s a lot of fun to wake up and do a bunch of different things on a given day. I guess I’m a gig economy worker now! A month in, I’m enjoying it.
SW: Looking at the mortgage space, what are some of the challenges when it comes to technology?
JC: There are several, but I think for IMBs specifically, it’s finding a way to get a stable investment track — something that allows you then to be able to continue to build in good times and bad times, because this industry is so boom/bust. And it seems like with technology, even when times are good, a lot of companies aren’t interested because there’s so much money to be made. That’s a broad generalization, but this is coming from discussions with lenders as well as vendors.
And then when times are tough, you know, you’ve just got to hang on and putting that kind of money into technology is tough. Many players in the mortgage space are well behind technological advances, and they need to find ways to really smooth that out, so that they’re continuing to make some investment in all the cycles. That would make them so much more efficient.
SW:You launched FHFA’s Velocity tech sprint in 2023 to bring the industry together to collaborate on solving some of the tech problems we face. What were some of the areas it focused on?
JC: We got a lot of different ideas! A lot of the discussions were very much: ‘let’s not just make incremental changes, let’s really look long-term. Like, how could we actually use blockchain or some form of distributed ledger to really build a better mousetrap?’ But the issue with so many of the ideas is that you have to have the policymakers or regulators, the GSEs, the lenders, and all the other parties on the same page. Now, the positive thing with that is, if you can get that, I think you can make real change.
The downside is that it takes a lot to get everybody there. But I think some of the problems we have today is because it’s so difficult to get everyone at the table. You have a lot of solutions, where it’s like, well, I’m not going to get everybody — I’m going to get a lender and I’m going to get a vendor and then we’re going to do this. And then somebody else says I’m going to get a title company and I’m going to get a POS provider, and we’re going to do this. And that’s quicker and easier, but I don’t know if it’s effective.
At the end of the day, I think we’re finding that companies are having challenges both on adoption and integration. And so maybe this idea of really putting in the time to get everybody at the table and start building makes sense.
A lot of people brought up things [in the tech sprint] that were not heavy lifts, but so important, like down payment assistance. There are so many programs out there, but sometimes in Washington, we forget that just because there are a lot of programs out there, doesn’t mean they’re accessible, doesn’t mean everybody knows about them. We also had some really good ideas about the front end, really being able to pull customer information quicker.
SW: What were some of the themes that came out of the tech sprint that you’re excited about?
JC: The trusted repositories. I’m excited because I think this is something that has not gotten a lot of investment and attention. And I think it goes back to the need for collective action. Just that word itself means you need to have a lot of people that are agreeing to move forward and do these transactions in a different way. And it’s going to affect all of us, but we’re going to be okay with it — we’re going to find a way to make money at it and also be efficient and lay the tracks down.
Blockchain sort of gets a bad name because it’s often connected with crypto. But a lot of these trusted systems run on distributed ledger technology. I’m not a techie, but I’ve looked at it and talked with a lot of people. And when you read what distributed ledger technology is meant for and where it really can bear the greatest fruit, it seems made for mortgage. And I think that’s something that the government and the GSEs are going to really need to encourage — I don’t think this is just going to happen from the bottom up. It’s too much money and it’s too big of a change. So I would like to see that become a priority.
SW: Where else do you think it will take government incentives or at least clearer regulation to advance tech?
JC: We need that sort of strong encouragement/directive even in areas where there’s already been work done. So one of the first things that we wanted to tackle with Velocity was the consumer information and the services that can quickly allow people to transmit what’s normally done in a paper-based, labor-intensive way. Tools such as Day 1 Certainty and AIM have been around for so long — six, seven, eight years — but take up was so low. What is the holdup? What are the bottlenecks? And how do we really push through them? And I think that’s something FHFA and the GSEs need to really push.
When adoption rates are so low, it becomes a vicious cycle. Adoption rates are low, that means people don’t think that the tools are effective, that means that they don’t use it, that means adoption rates go lower.
But think about Day 1 Certainty. I mean, one of its main reasons for coming into existence was to deal with the rep and warranty issue years ago. This isn’t just innovation, this was Fannie Mae and Freddie Mac getting the benefit of a secure, true document — it’s not something I can pull out and doctor up, it’s the actual record. And so it’s safer. You would think some of these tools are just a no-brainer, but I don’t think that’s the case. So that’s an area where Fannie and Freddie as well as FHFA should really push on it.
I would even be so bold to say I think the enterprises should be required to be getting adoption rates of 50% or more, and if they’re not, to really be able to explain why people aren’t using these very important tools they’ve developed. A lot of money has gone into building those tools. Also, to be very transparent, I am advising Argyle and they are one of those providers, so just full disclosure there that I’m advising them. But they and other companies like them are doing really interesting work.
SW: Let’s talk more about direct source data, since it seems like low-hanging fruit, whether that’s credit scores or verification of income and assets.
JC: I couldn’t agree more. And whether it’s The Work Number or credit scores, those are two examples where the consumer is paying that bill directly. And as we already know, closing costs go up every year. It’s an impediment for people — especially those with lower to moderate income — to be able to refinance and get the credit they need. So the more people do what Sandra Thompson is doing by looking at credit scores and trying to create greater competition, the better.
I mean, anytime somebody all of a sudden gets to double their fees because they see that their potential monopolies is threatened, I think it’s a sign that it’s a monopoly! As a taxpayer, I’m flabbergasted to see companies say, now that we might have to lose some of that, we’re going to increase our fees and make it up in the meantime. I think that’s a problem.
And I think that what CFPB did with the proposed Personal Financial Rights Data rule, they have started down that path with making banks share this information. Banks have been able to have a lot of our information locked up, but it’s not locked up for them — they get to use it. And when we want to use it or allow others to use it, it’s not that easy. I applaud the CFPB for really taking issue with that because it is the consumer’s information.
Now, I would say it’d be very nice if the CFPB expanded that to look at things such as payroll and credit scores, because the companies that I just talked about, are unfortunately not getting picked up. It’s the banks, right? And I really do hope that CFPB looks at some of these other companies, who are saying well, we built the pipes, and so we should be able to charge what we want. I don’t think so. There are a lot of subsidies in this housing space. I don’t know who built the pipes. I don’t think anybody on their own, with all their own private money, did it — I think there was a lot of help along the way. And, and again, when you look at who’s paying the bill at the end, it’s really troubling.
SW:What about alternative data? Where is that headed?
JC: I’m not sure where it’s going. I think it’s another one of those areas that with some guardrails, is going to be necessary because of demographics. The reality is that if you do 1099 work, it’s really hard to get a mortgage. I know that from the work we did at FHFA. Those processes are still geared to the 1950s Ward Cleaver family. I’ve heard concerns that some of the alternative credit information is not as robust, it’s not being based on longer-term data histories. I think it’s fine to raise those issues. I don’t think it’s fine to say that means we’re not going to factor it in or we’re going to be very stingy with whatever credit we give for those sorts of things. I think there are some companies like Argyle and others that are finding ways to be able to get that information from good verifiable sources so that lenders can bring that information in into the equation.
SW:What happens to the FHFA’s Velocity tech sprint now that you’re gone?
JC: The Velocity tech sprint and just the FinTech office in general is in very good hands. At FHFA Anne Marie Pippin is continuing to do that work. She did most of the heavy work when I was there, so you’re seeing Anne Marie at the various conferences and panels. FHFA Director Thompson continues to strongly support the work. She has Tracy Stephan, who we brought on board, who was a long term executive at Fannie and also Leah Price has joined recently. And while they have a small group, you’ve got some good leadership and also some people that have actually done this work.
In today’s volatile housing market, ensuring your home is protected against unexpected repairs and replacements is more crucial than ever. As homeowners seek peace of mind amidst the unpredictability of homeownership, home warranty companies have stepped up to offer a buffer against unforeseen expenses.
5 Best Home Warranty Companies
With so many options available, pinpointing the most reliable and value-packed home warranty company can be daunting. To help you choose, we’ve curated a list of the best home warranty companies to ensure your home’s systems and appliances receive the top-tier coverage they deserve. Take the time to discover which provider aligns best with your needs.
#1 Choice Home Warranty
There are plenty of reasons to go with Choice Home Warranty. First, they are a top-rated business according to ConsumerAffairs.com and have an average rating of 4.8 out of 5.
They have a five-star rating from Trust Pilot, and Inc. 5000 has recognized them as one of America’s fastest-growing private companies.
Choice has customer service available 365 days a year, 24 hours a day, 7 days a week. So if you’ve got a problem, don’t be afraid to pick up the phone and call them.
They are more than happy to answer any questions about your home warranty plan or, if need be, put in a request for a repair. A licensed, pre-screened, and continuously monitored technician will come to your house, usually within one or two business days.
The age of your home, its systems, and appliances is not relevant to Choice Home Warranty. They always cover items that have been properly maintained and were in well-working order when coverage was initiated.
If the item in question needs to be replaced but is no longer available on the market, they will give you a cash payment of the item’s replacement cost.
Another plus is that you don’t even have to get your home inspected before Choice Home Warranty will begin offering you coverage.
Choice also has a very reasonable $85 dollar service call, which makes them among the most competitive warranty providers for service calls.
Plan Options
1. Total Plan ($450 a year)
Includes coverage on the following —
AC
Heating
Electrical
Plumbing
Water Heater
Whirlpool
Refrigerator
Oven
Dishwasher
Microwave
Garbage Disposal
Washer and Dryer
Ductwork
Garage Door Opener
Ceiling and Exhaust Fans
2. Basic Plan ($378 a year)
Includes coverage on everything mentioned above, EXCEPT:
AC
Refrigerator
Washer and Dryer
Items that can be added at additional cost include:
Pool
Central Vacuum
Well and Sump Pump
Limited Roof Leak
Stand Alone Freezer
Second Refrigerator
Septic System
Septic Pumping
Read our full review of Choice Home Warranty
#2 Advanced Home Warranty
Advanced Home Warranty offers comprehensive coverage and a 24/7 claims hotline, making it a strong choice for anyone considering a home warranty.
Home warranties are available nationwide, so you can qualify for a plan, no matter where you live in the U.S. Plus, you can try it out without any risk by signing up to get your first month completely free of charge.
Trade service fees are reasonable at $60. If the cost of the repair is less, you’ll pay the smaller amount. This is one of the lowest service fees available among the providers on our list.
While they don’t offer a wide range of plans, you can get coverage on some of the big-ticket items associated with homeownership.
A low monthly fee can be much more manageable than paying for replacements outright every time an appliance breaks. There are also parts of even larger systems that are included in their coverage.
Here’s a breakdown of the two home warranty plans available from Advanced Home Warranty, how much you’ll pay, and what exactly they include.
1. Basic Plan ($370 a year, plus one month free)
Includes coverage on the following:
Heating System
Electrical System
Plumbing System
Dishwasher
Microwave
Garage Door Opener
2. Total Plan ($450 a year, plus one month free)
Includes coverage on everything above, PLUS:
Air Conditioning
Refrigerator
Washer/Dryers
Do read each home warranty plan for details on exactly how each specific item on the list is covered.
Read our full review of Advanced Home Warranty
#3 Liberty Home Guard
Liberty Home Guard offers a high degree of personalization for your home warranty coverage. For example, you can pick the plan and also how often you want to be billed.
You can choose monthly payments, annual payments, or for the most savings, multi-year home warranty plans.
Liberty Home Guard offers a service call fee of $60, which is a competitive service fee. You can also expect your service call to be delivered within 48 hours of making a claim.
You don’t need a home inspection to qualify for coverage with Liberty Home Guard. There’s also no limit to how many claims you can file within a year.
You can file your claims online for your ease and convenience. And with a 60-day satisfaction guarantee on service, you’re sure to be satisfied with the repair or replacement process.
If for some reason, you want to cancel your plan early, it’s entirely possible because there’s no annual contract. You’ll receive a prorated refund for any time you’ve paid for, except for a small administrative fee.
With Liberty Home Guard, there are three different coverage options you can choose from. You can also include optional add-ons in any plan.
1. Appliance Warranty for $39.99 Monthly or $399.99 Annually
Clothes washer
Clothes dryer
Refrigerator with ice maker dispenser
Built-in microwave oven
Dishwasher
Garbage disposal
Range/ oven/ cooktop
Ceiling and exhaust fans
Garage door opener
2. Systems Guard for $49.99 Monthly or $499.99 Annually
Air conditioning
Heating
Ductwork
Plumbing
Electrical
Water heaters
3. Total Home Guard for $59.99 Monthly or $599.99 Annually
This choice offers the most protection of all the plans and includes everything listed in the two plans above.
4. Optional Add-ons
Pool and spa: $17.00 monthly; $195.00 annually
Sump and pump: $3.00 monthly; $36.00 annually
Central vacuum: $3.00 monthly; $36.00 annually
Well pump: $9.00 monthly; $101.00 annually
Additional spa: $16.00 monthly; $188.00 annually
Septic system and septic sewage ejector pump: $11.00 monthly; $123.00 annually
Stand alone freezer: $4.00 monthly; $44.00 annually
Second refrigerator: $4.00 monthly; $44.00 annually
Read our full review of Liberty Home Guard
#4 Complete Protection
Complete Protection is another excellent home warranty company. Servicing all but nine states, this A+ Accredited Business is open 24/7.
Only slightly more expensive, this once small-scale, family-owned business offers some of the most comprehensive home warranties available in North America.
One of the many benefits offered by Complete Protection is their no-fee service call policy. With most quality providers charging at least $50 per service call, having no service call fee at all is a major perk.
They have five plans you can choose from:
Kitchen/Laundry: $32 a month/ $384 a year — covers your dishwasher, oven, refrigerator, and washer and dryer.
Heating/Cooling: $34 a month/ $408 a year — covers your furnace, AC, and water heater.
Basic Built-ins: $40 a month/ $400 a year — Furnace, AC, water heater, dishwasher, and oven.
Full House: $50 a month/ $600 a year — Furnace, AC, water heater, dishwasher, oven, refrigerator, and washer and dryer.
Full House Plus: $60 a month/ $720 a year — Includes everything mentioned in the first four plans, but also includes electrical wiring and in-bound water pipes.
What makes Complete Protection stand out even more:
There are a few other things that make Complete Protection stand out from its competitors. For one, their home warranties don’t have a deductible. As a result, you don’t have to pay any approved repair costs when something happens — this includes the initial service call, parts, and labor.
Secondly, CP pays for all preventative maintenance. Other home warranty companies mandate that their customers undergo preventative maintenance on items such as HVAC systems, but they won’t even pay for it. Instead, they force their customers to do so!
Thirdly, CP home warranties cover all the parts within an appliance. Most home warranty companies exclude parts like ice makers or washing racks within dishwashers. CP does not pick and choose which parts it will cover.
Lastly, Complete Protection allows you to choose your own service contract provider. So, if you have a certified contractor with whom you work, you can go to them whenever home repairs are needed.
They do this because they feel that their customers should always be comfortable with the person working in their house.
Read our full review of Complete Protection
#5: American Home Shield
The accolades American Home Shield has received are many. In addition to being a Better Business Bureau Accredited Business, they also received the Women’s Choice Award from 2014 to 2016.
On top of that, Home Warranty Reviews gave American Home Shield the Best in Service award in 2014 and ranked them as Top Rated from 2015-2017. Last but not least, they are Consumer Affairs Accredited.
Why so much recognition from the industry? For starters, they’re always open. You can always reach them regardless of what day or time it is. And, when you do, expect a local contractor to be at your home within no more than 24 hours. You don’t even have to get on the phone. You can request home repairs directly from their website.
Another reason American Home Shield is recognized as the best among the best is its versatility with its home warranty plans. They have four to choose from:
Systems Plan: Covers the replacement or repair of your home’s key systems, such as: plumbing, electrical, heating, air conditioning, and smoke detectors.
Appliances Plan: Includes coverage on common, everyday household appliances, such as refrigerators, built-in food processors, dishwashers, and washer and dryers.
Combo Plan: Get coverage on all of your primary home systems and appliances. Saves you $14 a month if you were to rather purchase the systems and appliances plans separately.
Build your own plan: Choose only what you want to be covered by selecting 10 or more items from their list of covered items. This way you get the coverage that you care about the most.
Another element of their customized service is their service fees. American Home Shield allows customers to choose from a service fees range of $75, $100 or $125 per service request. This allows you to get the plan you want without having to account for a high service call fee.
The ability to choose your own service call fee regardless of the plan you’re on separates American Home Shield from most other home warranty companies which carry a standard service call fee.
Additionally, American Home Shield can provide coverage for your pool, spa, well pump, and septic system (at additional costs) and can assist you during the moving process by covering your home while it’s listed. If the new owner decides they would like to upgrade service afterward, it’s an easy switch to do so at closing.
Read our full review of American Home Shield
Methodology: How We Chose The Best Home Warranty Companies
When researching the best home warranty companies, we analyzed over 20 of the most popular home warranty companies. Our team spent hours reviewing each home warranty company. We examined many factors, but mainly focused on the following:
Home warranty plans and options
Pricing
Reputation and trustworthiness
Customer reviews
Pros of Home Warranties
Peace of Mind
One of the major benefits of a good home warranty is peace of mind. A home warranty can bring some real financial security against unexpected home repairs. While getting your home in ideal shape can be tough, maintaining that level can be even more stressful. A good warranty coverage can cut away a big chunk of that worry.
Convenience
One of the biggest problems people can encounter when faced with unexpected breakdown at home is finding good help. But a home warranty also reduces some of that stress, as your provider can provide you with a relevant licensed expert within their network.
Potential Savings
In many cases, standard home repairs – such as a new boiler, for example – can be a lot cheaper if replaced under warranty. While home warranties can’t guarantee savings, chances are you will see the benefits speak for themselves over time.
Transferable
Many home warranties are transferable, meaning you could carry your plan to a new home if you decide to move. Be sure to check whether transferability is a feature of any warranty before signing if that’s important to you.
Cons of Home Warranties
Wait Times
Unfortunately, wait times for claims can sometimes keep you waiting. If you need a quick fix or emergency repairs at home, you may have to wait longer than you would like. One thing that can help here is looking for a provider that provides an online claims process. This is because online claims are often processed faster than those done over the phone.
Coverage Exclusions
Home warranties don’t cover everything, and it can be hard in an emergency to remember your exact coverage limits. It’s important to read the details carefully before signing up, and put a plan in place if you need work that falls outside your warranty coverage.
Cost
Home warranty coverage isn’t cheap, especially if you want to secure protection across your property. You won’t necessarily be covered by service fees, even if you choose a plan with a high service fee. And of course, some maintenance and repairs can come with further costs on top of your plan. These high costs can make it difficult to discern whether a home warranty is the right thing for you.
Other Home Warranty Companies to Consider
Here are a few other home warranty companies that didn’t make our top 5 that you may still want to look into.
Like so many things in our lives, a home warranty is something that we don’t often think about until we absolutely need it. Sure, you have home insurance, maybe even flood insurance, but that only covers certain situations.
Homeowners Insurance
Homeowners or renters insurance can cover damage to your home from things like fire, theft, storms, and some natural disasters. In addition to your homeowners insurance plan, you should choose to purchase a home warranty to protect your belongings in a way that insurance lacks.
If you’ve ever purchased a large appliance, a computer, or even a television from a retailer, then you’re probably familiar with the concept of a warranty.
However, those are warranties sold at the time of purchase and cover only one product. The benefit of home warranty protection is that it can cover every product in your home and more.
Choosing a Home Warranty Plan
What a home warranty plan covers will depend on the plan you choose, and there are many to choose from. A home warranty can cover anything from your microwave oven to your plumbing and your electrical systems.
Deciding which plan is right for you will determine what items and systems it covers and how much it will cost. Typically, home warranties charge either a small monthly or annual fee that can save you a lot of money in the long run.
How to Choose the Right Home Warranty
Choosing the right home warranty is key. Let’s run through all the details you need to consider before making your decision.
Determine Your Coverage Needs
At the very least, it’s important to get at least an idea of what sort of coverage you need. Take the time to decide which items in your home you want to protect before comparing offers. You’ll find plans that cover appliances, home systems, and plans that cover both.
Compare Quotes
It’s worthwhile to shop around. Try to acquire at least three different quotes from plans that you’re genuinely interested in. And use this time to also prioritize clearing up any questions you have about the policies you’ve been offered.
Don’t forget to pay close attention to the various prices you’ll see for service call fees. Some companies are much more competitive than others, and some even offer a service fees range which you can choose from depending on your needs and budget.
Review Sample Contracts & Liabilities
The next step is to review any sample contracts carefully. You’ll want to identify the limitations and exclusions in the contract, especially.
Furthermore, be sure to double-check cancellation policy just in case you decide your warranty isn’t working for you later on.
Check Reviews
Finding the best home warranty company for you will require some further research. You can read customer reviews online to find a company that provides great customer service as well as competitive plans.
Be sure to look out for any record of previous legal action taken against the company, too.
Home Warranty FAQ
What is a home warranty?
A home warranty is a type of service contract purchased to cover breakdowns, repairs, and replacements of home appliances and systems. Home warranties are designed to cover normal wear-and-tear damage on covered items and systems.
When a covered item breaks down or otherwise requires attention, you file a claim with your warranty provider. They then send a licensed technician to your home to assess the issue. Instead of paying for the full cost of the repair, being under warranty generally means paying only a small service fee for necessary repairs. The price of service fees varies between providers.
Home warranties are popular because they offer homeowners maintenance coverage and emergency repairs without having to rely on savings. The home warranty market today is huge and can provide terms for homes and budgets of many shapes and sizes.
What does a home warranty cover?
Home warranties can cover a whole range of systems and appliances within your home. You can decide how much you want to spend and determine what items will be covered by your home warranty.
Most home warranty companies break down their offerings into good, better, and best options. The good option, and least expensive, is one that covers most if not all of your appliances.
Major Home Systems
More expensive on an upfront basis are plans that cover major home systems. These home warranty plans cover the systems within your home. If you’re renting, this may not be of concern to you. However, if you own your home, you know that a plumber or electrician can cost a lot more than replacing your refrigerator.
If you’re less concerned with appliances and worried about what keeps your home humming along, then you may want to consider a system plan.
Appliances
Appliances like your microwave, washer and dryer, dishwasher, and often a lot more are covered by the best home warranty companies. These are great options for those who are renting or want to spend the least amount of money.
Systems & Appliances
The most expensive plans, of course, offer the most coverage. The best plans cover both systems and appliances. So while they’re the most expensive, they’re also the best value. Covering your systems and appliances together will typically save you around 20% to 30% of your total bill.
Basic plans from the best home warranty companies will cover the majority of systems and appliances in your home but don’t cover everything. If you have a pool, for instance, you may have to choose additional coverage.
Some home warranty companies even allow you to add coverage to cover your homeowners’ insurance deductible. Combining appliance and system coverage may also include these additions.
There are exclusions to what a home warranty will cover. Unfortunately, no plan is a blank check to have every item in your home replaced. These are repair plans and not replacement plans.
What is not covered by a home warranty?
The extent of your warranty coverage will vary greatly between companies and plans available. Having said that, however, here is a list of the ideas that are usually not covered by a home warranty:
Structural issues, paint and flooring
Commercial-grade equipment or systems
Pre-existing conditions
Rust, corrosion and sediment problems
Improper maintenance, installation, design, or manufacturer defect
Detection and removal of asbestos and mold
Building and zoning code violations
How much does a home warranty cost?
Home warranty pricing varies greatly depending on the coverage you choose, the home warranty company, and the area in which you live. In general, though, if you’re just covering appliances, expect to pay around $30 a month.
If you’re looking for only system coverage, you’ll probably pay around $35 a month. However, if you combine your coverage to include both systems and appliances, expect to pay around $45 per month.
Adding things not covered by a typical home warranty plan can also increase your monthly bill. If you have an atypical appliance or system, it’s possible that basic plans do not cover it. Not everyone has a swimming pool, a septic tank, a whirlpool tub, or a spa.
Check with your individual plan to ensure that all systems and appliances you want to have covered are actually included. If they aren’t, see if you can add them separately.
Service Fees
In addition to your monthly fee, you’ll also need to pay service fees for a service call. This cost can vary greatly.
The best home warranty companies offer plans that will cost you around $50 to $125 per repair. This is based on the home warranty company, the plan, and the item that needs to be fixed. While this may seem like a lot, consider the cost of the average repair without a warranty.
What can you expect to pay without a home warranty?
The average repair cost of a refrigerator is $275 to $325. The igniter on an oven or range may only cost $110 to $200 to repair, but a control board could cost you more than $260.
Replacing a rubber gasket on your washer will set you back between $200 to $300. These expenses can quickly add up compared to the fee home warranty companies charge for a visit.
Bottom line: They’ll address the issues with your current item but won’t give you a new one.
Pre-Existing Conditions
Pre-existing conditions are not covered either. Unfortunately, if one of your major appliances breaks, you can’t just sign up for coverage and expect to have it fixed.
Most home warranty companies will cover an unknown pre-existing condition. However, you can’t have an appliance covered if you or the home warranty provider knows that it’s already broken. This is why it’s a good idea to think about purchasing home warranty coverage before your appliances break.
Coverage Waiting Period
Most companies impose a 15 to 30 day waiting period before coverage can begin. There are, however, exceptions to this rule. For instance, if you have a home warranty that is ending soon, you may be able to begin on the date your coverage stops.
It’s important to read the fine print of your service contract. Each home warranty company will have very specific coverage details.
While all will most likely cover your refrigerator, not all of them will cover wear and tear on the gasket that seals it. Typically, the more expensive the plan, the more it covers, but this is not always the case.
What is the process for having an item repaired?
When something breaks, especially if you have a home warranty, you’ll want it fixed as quickly as possible.
Going without a microwave for a week or two may be acceptable, but if it’s your refrigerator, you may not be so patient. When an item malfunctions or breaks, you’ll need to contact your home warranty company’s customer service and explain the issue.
Make sure you report the problem as quickly as possible. The faster you make the call, the faster you’ll get an appointment and have your issue resolved.
Independent Contractors
The home warranty provider will most likely assign an independent contractor to inspect and repair the item. Obviously, system repairs can take longer and be more labor-intensive.
For example, replacing a part on your furnace will be a lot easier than repairing electrical wiring or plumbing inside your walls.
Depending on what is wrong, the contractor may have to order parts or return with specialized equipment. You’ll be required to pay a service fee for each item you wish to have repaired. However, the contractor should ensure that the item returns to working order.
Workmanship Guarantee
Once you’ve had an appliance or system repaired, that item is covered under a workmanship guarantee. Think of it as a warranty within your warranty.
The home warranty provider guarantees the parts and labor of that particular repair for a specified amount of time. This is usually around 90 to 180 days after the repair. So, even if you cancel your plan, they will still cover the repair during that time.
Who should pay for a home warranty?
Many times the seller will buy a home warranty to make the purchase of the home more appealing. Sometimes a real estate agent will even purchase a home warranty as a courtesy to the clients they’re representing. However, buyers, sellers, real estate agents, and current homeowners can all buy a home warranty. It’s also important to note that buying a home warranty can be done at any time, before or after closing.
What should you look for in a home warranty company?
A home warranty can save you a lot of hassle and headaches, not to mention money, down the road—as long as you do your homework and think it through.
A home warranty covers many things that homeowners insurance does not. Having peace of mind knowing that costly home repairs won’t spring up unexpectedly is a great feeling.
Choosing the right type of coverage for you is the next step. When you think about the type of coverage you want, think about the items you want to protect in your home.
Renters
If you’re just renting, then plumbing and electrical work is not a concern for you. Your homeowners insurance should cover things like theft and fire, but you still want to be covered when something breaks that you actually own. Choosing an appliance plan is probably the right option for you.
If you live in an older home that you own, a more comprehensive plan may be the right choice for you. It’s comforting to have your home inspected before purchasing, but things can still go wrong. You can avoid costly maintenance as long as you plan ahead.
Are home warranties worth it?
The answer to this question will depend largely on your unique circumstances. Two of the biggest factors are the age of your home and the quality of your appliances. In addition, your own ability and comfort with repair and maintenance is a factor.
Almost every home appliance and system will eventually require significant repair or even replacement. Depending on your own DIY skills, you might be comfortable taking responsibility for most repairs. Others might want more comprehensive coverage. But even still, there could be plenty of reasons why you would prefer to have a home warranty.
How do I cancel my home warranty?
Your first step should be to review your contract and make sure you understand the cancellation policy. Most companies will charge a cancellation fee that can range from 5% to 10% of the outstanding fee.
Thereafter, you can contact the company and tell them you’re considering cancelling your warranty. If possible, try to speak to a sales rep with whom you’re familiar.
Some companies require you to send a written notice of termination. Remember to cancel any automated payments from your credit card or bank account, if necessary. It might also be a good idea to request a written confirmation of the cancellation for your records.
Which home warranty company has the lowest service call fee?
Service call fees can vary widely between companies, but it’s important to try to find the most competitive service call fee available to you. Service fees generally range from $50 to $150 per service call.
The trick with finding a competitive service fee call is making sure you don’t sacrifice the quality of service calls. Some of the top-rated home warranty companies charge a higher service fee. However, it could be worth it to have the security and confidence of quality home service.
Final Thoughts
To find the best home warranty company, you will need to read the contract thoroughly. Every company that you investigate will have a contract. In that contract, they’ll spell out exactly what they do and do not cover.
They’ll also explain the cost, who will fix your items if they break, and more. Comparing two or more home warranty companies can give you a sense that you’ve made the right decision. Always make sure you do your homework.
Furthermore, check to see if a home inspection is required before qualifying for a home warranty with a specific company. Many don’t require this extra step, but it’s wise to be prepared in case they do. You definitely want to consider both cost and convenience as part of your ultimate decision.
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