Homeowner resolutions

New Year’s resolutions for new homeowners

Homeowners, this is your year to get it together. Even if you’ve faltered on resolutions to lose weight or drink less, you can still make good on a promise be more financially responsible.

Here are a few must-dos:

1 Start an emergency fund

Homeownership can cost more than you think. An emergency savings fund provides a financial safety net. Remember, if the furnace quits on a cold night, there’s no landlord to call. Laid off unexpectedly or surprised by major car repairs? Mortgage payments are still expected on time and in full.

Ideally, your emergency fund should cover several months of expenses, but it's OK to start small. Set aside a portion of every paycheck with the goal of saving $500 and build from there. 2 Inspect insurance Just because a standard insurance policy satisfied your lender doesn’t mean you’re adequately covered.

“Homeowners insurance isn't one-size-fits-all,” says Ryan Andrew, president of The Andrew Agency, an independent insurance agency.

There are unique coverage options and, more importantly, exclusions that homeowners need to be aware of. Does your policy cover the full cost of your jewelry or other valuables? Are disasters like earthquakes and floods excluded?

3

Get an energy audit An energy audit — performed by utility companies, city governments and some contractors — can help measure the energy efficiency of your home by detecting air leaks, insulation issues and more.

The audit will fill you in on what repairs can be made and often, what programs and rebates are out there to help pay for them.

4 Consider a home

warranty If the appliances in your new home are near the end of their life cycles, a home warranty may help shield you from the cost of replacement. Also called home service contracts, home warranties are annual agreements that offset the repair or replacement cost of major home components and appliances.

Approach home warranty companies with caution, however. Read customer reviews and avoid gimmicks that seem too good to be true. Like insurance policies, home warranties are full of fine print, and homeowners often fail to realize what’s excluded until they try to make a claim.