Survey: Most homeowners aren't budgeting for home repairs

A new survey conducted by HomeServe USA is pointing to a lack of foresight – or perhaps a lack of a financial cushion – among many homeowners.



Of the 2,022 U.S. adults polled in December, only 40% are budgeting for home maintenance expenses and even fewer (38%) are accounting for home repairs in their budgets. 



A significant chunk revealed that they aren’t prepared for a worst-case scenario. About 35% said they would not have enough money saved (or they’re not sure if they would) to replace their heating system this winter.



Then again, the majority aren’t worried that they’ll have to resort to that – 59% said they are not at all or not very concerned about a major home repair in 2015.



What they are worried about: energy and utility bills. More than half – 55% -- said they regularly track or monitor their home energy use.



“While everyday expenses such as utility bills are top of mind with homeowners, a hidden danger to their budgets can be the cost of unanticipated home repairs, such as a heating system breakdown or water line break,” said Tom Rusin, CEO, HomeServe USA. “The cost of a water line replacement, for example, averages $2,200 nationally and replacing a heating system can cost thousands. Because many homeowners aren’t budgeting for these unexpected expenses, it might make sense for them to consider a service repair plan for a fixed monthly fee to provide financial certainty and avoid the surprise of a costly system repair or replacement.”



Overall, only 32% of the survey respondents said they successfully budget for all their expenses. About 38% keep a budget that they don’t stick to, and 30% don’t have a budget at all.