5 tips to help you pay for your emergency home repairs
In times of calamity, your home can suffer severe damage requiring emergency repairs. The fact is that floods, earthquakes and fires can happen without warning. As such, you may not be financially prepared for sudden expenses.
Fortunately, there are a number of things you can do to cover the cost of repairs. Here are some tips to help you pay for home repairs in times of financial emergency:
Take a loan
You can take out a loan from a bank or from a service provider that offers an online loan. Financial technology (fintech) companies in the Philippines offer several money lending options, which you can repay based on agreed terms.
Usually the banks can give you the money one week after you submit an application. Sometimes it may take longer. The types of loans you can use to finance your emergency repairs are:
• Online lenders. There are fintech platforms that allow you to borrow money digitally. By simply downloading their application and completing their online registration, you will be able to apply for a loan and get approved in just 15 minutes. Lending apps also partner with different stores to bring you the best deals.
• Personal loan. Applying for a personal loan is faster and easier than other types of money lending options. It is a type of unsecured loan, which means that it does not require any collateral; it is also offered by most banks.
• Loans for home improvement. You can also use home improvement loans to cover the cost of repairs, especially when you plan to renovate your home in the near future.
Use your credit card
If you’re dealing with minor emergency home repairs, using your credit card to cover the cost is a smart move. Most credit cards can be used for emergencies, and there’s no better time to use yours than when you need to fix the plumbing or electrical wiring in your home. With just one card swipe, you can pay the repair costs. However, you must ensure that you do not go over your credit limit.
File an insurance claim
Getting home insurance can be an additional annual expense, but it can help you in the event of a disaster. Indeed, home insurance is designed to protect your home. Its policies can cover destruction and damage whether located inside or outside your property. Most home insurance policies cover the cost of repairs for the following types of damage:
• Fire damage
• Water damage
• Smoke damage
• Vehicle impacts
Review government-backed programs and loans
The government offers a few programs that can help cover the cost of your emergency home repairs. The National Housing Authority (NHA), for example, has the Housing Assistance Program for Disaster Victims. This program is best known for relocating low and marginal income and/or informal settler families to safe areas after their homes have been demolished by a disaster (e.g. landslides, fires, etc.). However, it also provides housing material assistance (HOMA) to families whose houses are located in the “safe zone”, but which have been damaged by the disaster. The HOMA provision only applies to families who do not require relocation and resettlement.
The Social Security System (SSS) may also give you a home loan for repairs and/or improvements. The amount awarded will be based on the following factors:
• Borrower’s ability to pay
• The estimated value of the guarantee
• The actual need of the borrower based on the sales contract or the scope of work, as well as the nomenclature of materials, evaluated by the SSS
The maximum loanable amount that SSS can provide is P2,000,000.00. An SSS housing loan for repairs and/or improvements is payable in multiples of five years up to a maximum of 15 years.
Using DIY Solutions
Are you skilled with tools? Then you can handle minor repairs via DIY methods. Most DIY repairs are inexpensive and can sometimes be free if you already have the materials. You can also find videos online on how to make quick fixes.
Depending on the damage to your home, covering the cost of repairs can be expensive. However, it is better to fix them as soon as possible rather than letting the damage linger.