Owning a home can be an expensive option. It might help to at least partially explain why in some countries, home ownership levels are relatively low compared to North America. Being a home owner myself, I decided to do some research to look at the most common and expensive home repairs that while costly, also impact the safety of a home. Here’s what I discovered.
The Most Expensive Home Repairs
Owning a home means you are ultimately responsible for everything on your property inside and outside the home. Over time many things wear out and need to be replaced and many impact the safety and well being of the people who live there.
Here are the common ones you may face that also can have a large bill attached to them.
Foundation repair
Home foundation repair is one of the most expensive and potentially time-consuming repairs you may face given what the repair work may involve.
An average home foundation repair can cost $4,000 and typically ranges from $1,800 – $6,500. More extensive repairs may cost over $10,000 when more digging and repair work is required. While your foundation is covered by insurance in general, many causes of foundation damage might specifically be excluded so the cost to fix it may be something you have to pay for yourself.
Tip: Have a qualified home inspector check a home before you buy it and ensure they specifically check the foundation. While it is expected that a concrete basement floor and even the walls will have some cracking, there are guidelines that you can learn about to determine whether cracking is so large and wide that it may indicate a larger problem
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Water membrane repair
Every home is built with some sort of water membrane system around the foundation to prevent moisture from seeping into the basement. Typically a home has several components to the water membrane: The membrane itself to protect the concrete foundation of the home. A drainage mat to block water from entering the basement and to allow it to drain downwards instead. A draining system – weeping tiles or French drain – that enables large amounts of water from rainfall to drain away from the home rather than ending up in the basement.
The cost of water membrane repair and replacement can vary wildly depending on the severity of the problem and how much work needs to be done. While a completely new membrane may cost upwards of $15,000 to install, repairs may run $2,000 – $6,000 on average.
Tip: While waterproofing installation and repair is a professional job and not a DIY project for you to do, there are certain things you can do to help yourself. Before you buy a resale home, ensure that a home inspector has viewed the home inside and outside and commented specifically about the foundation and waterproofing and any signs of previous water damage.
Once you are a homeowner, ensure that your downspouts are properly installed, test weeping tile systems to ensure they aren’t blocked, fix grading issues around the perimeter of the house and keep gutters clear so they can drain properly.
Older homes may have used now outdated water membrane designs that may need to be replaced eventually and over time, your weeping tiles may get blocked and need replacement too.
Roof repair
Houses with roof shingles tend to require replacement sooner than you might expect. Roofing shingle manufacturers offer long warranties on their products but are renowned for denying claims due to improper installation of roofing shingles typically by cheap roofing companies who don’t properly prepare the roof surface and cut corners to save themselves time and money.
Reshingling a roof typically costs $4,000 – $10,000 or more depending on the size and slope of the roof. Cheaper installers often cut corners in terms of quality and may also take shortcuts with safety and the workers they hire so beware. Missing roof shingles should be replaced immediately after heavy wind and storms to avoid a leaking roof.
Tip: Before signing with a roofing shingle installer, ask them to document in writing specifics regarding ice dam protection and what roof underlayment (eg. asphalt-saturated felt) they use before installing the shingles on top. Properly preparing the roof surface before reshingling not only extends the life of the shingles but ensures your warranty is in place.
Many jurisdictions have building code requirements that specify minimum standards regarding ice dam and eaves protection and shingle underlays that roofing companies must adhere to.
Water heater
Some homes have rental water heaters that will (should) be replaced at no cost to you as required. You may also own your water heater in which case you’d have to bear the cost of replacement yourself.
A water heater tank typically costs $13 – $16/month to rent and costs $800 – $1,200 to purchase outright. A further installation cost of about $300 should be expected. A tankless water heater may cost $500 – $2,200 to buy plus installation costs that can range from $150 – $1,500.
The average homeowner might be content with a water heater rental so when it eventually needs to be replaced, the owner (water heater rental company) is responsible for replacing it at their cost. Eventually a water heater will leak or otherwise wear out and meet the end of its lifespan.
Tip: A tankless water heater is a modern method of heating water within the home and may be a suitable replacement over a more traditional tank water heater. Check out my article Tankless Water Heater vs Tank Water Heater to learn more.
Water damage
Water damage can occur from inside the home or outside. We already spoke above about protection from water from outside the home penetrating the foundation and making its way into the basement. Any source of water from inside the home is also a threat to cause water damage: Water pipes, water softener, washing machine, dishwasher, bath, shower, faucets, fridge ice maker, fish aquarium and more.
The average insurance claim for water damage is around $7,000. If you live in a condo or apartment and experience a water leak, you are likely responsible for water damage for units below you too, which can dramatically increase the damage and cost.
Tip: Before buying a home, look carefully for signs of previous water damage on the basement walls and ceilings. Look for flaky or bubbling paint which typically means water damage. Some homeowners try to do DIY coverups of water damage and other repair work before selling a home.
Pay attention to the grading of the land around the home especially if you’re in a flood zone or close to a river or other body of water that could overflow.
Termite damage
Termites are small insects that typically survive by consuming wood both outside or inside the home. They can get into houses whether wooden-framed or not and devour the structure, drywall and even furniture. They can cause significant damage and are nicknamed the silent destroyer as a result.
Damage from termites in the US is believed to be responsible for around $5 billion in structural repairs each year. A homeowner may pay around $3,000 on average to repair the destruction they caused. While ridding your home of termites costs around $525 on average, larger homes and more extensive infestations could cost up to $2,500.
Tip: While anti-termite products exist and are available for consumer usage, your best bet when facing a termite infestation is to call in the professionals. Given the amount of damage they can do – and may have already done by the time you discover them – it’s best to get this problem taken care of asap by a trained pro.
Heating/AC conditioner
Furnaces tend to break down at the most inopportune times. Since the furnace heats the home in the winter, of course it can only break when the weather is coldest and you need it the most. Similarly, your air conditioner is only used in the warmer months and will tend to die during the summer when the weather is hottest.
Expect to pay $150 – $450 for a visit from a heating, ventilation and air conditioner (HVAC) technician. The cost for a single visit may be higher on holidays and for after hours emergency service. A typical furnace repair can cost $150 – $2,000 and a furnace replacement can typically cost $2000 – $6,000 although the most expensive furnaces cost much more. An AC repair may run $600 – $900 or more depending on the specific repair.
Tip: Consider buying an HVAC service plan with a local trusted provider that may cover routine maintenance and offer you preferential or perhaps discounted service for emergencies. Service plans like this can often pay for themselves with a single visit. Emergency services cost more and a service plan may give you discounted rates and may help you jump the line ahead of other people who don’t have the plan.
Mold removal
Mold is an interesting albeit dangerous and potentially costly problem. It’s interesting because the average person can learn how to spot mold either through sight or smell. The thing is that only a qualified mold inspector can actually diagnose it since different forms of mold exist and they occur for different reasons.
Mold grows on walls of the house and other areas largely due to high humidity, condensation and water leaks that may or may not be noticeable. Mold remediation may cost $500 – $6,000 and unless it was specifically caused by a covered peril, will most likely not be paid by insurance. The discovery of mold may scuttle a home sale from the buyer’s perspective if they decide it’s a deal breaker.
Tip: Whether you are looking to buy a new home or already own one, always be on the lookout for mold, dampness and mustiness especially in the basement as it can lead to health issues if mold spores are allowed to take hold. It can also be costly to fix because not only do you have to get rid of the mold, you need to get rid of the root cause.
Appliances
Appliance repair and eventual replacement is an important topic because they tend to break suddenly without much or any warning. Even if they give a warning, it’s often only seen with hindsight. Getting an appliance repair tech to visit your home might take a day or longer. Ordering and receiving delivery and installation of a new appliance like a fridge or washer might take a week or longer all in.
It’s typically time to replace an appliance when it has reached 50% of its expected lifespan and a needed repair costs 50% or more of the appliance’s original cost.
Tip: While extended warranty plans can be expensive for you and a lucrative cash cow for insurers, they can come in handy if an appliance breaks. Click this link (How Long Do Appliances Last?) to check out my article on whether to repair or replace various appliances and to learn about the costs of each option and the expected lifespan of each.
Driveway replacement
Most homes have asphalt driveways with concrete and interlocking bricks also common choices. Each will need to be repaired, each requires at least some maintenance and all three will eventually need to be replaced at some point.
A brand new asphalt driveway will cost $2 – $5/square foot. A new concrete driveway costs around $4 – $10/square foot. An interlocking brick driveway is the most expensive running around $10 – $50/square foot to install. A heated driveway is even more expensive.
Tip: Most homeowners don’t think too much about their driveway in terms of maintenance but the truth is that you can extend the life of each with basic and relatively easy to do troubleshooting. It can save you money in the long run and extend the life of your driveway.
Asbestos
Asbestos is a building material that was widely used for centuries in many building applications until the public became aware of its side effects and health hazards. While asbestos was first linked to serious health conditions in the early 1900s, it wasn’t until the 1970s that the public fully understood its link to a cancer called Mesothelioma and other life-threatening illnesses. By then asbestos had been widely used in numerous commercial applications like insulation, bricks, concrete, piping, fire-retardant coatings and more.
The average cost to remove asbestos from a home is around $2,000. If your home was built before 1986, it’s best to check to see if asbestos may have been used in one or more capacities. More than 39,000 people in the US alone die each year from the effects of asbestos exposure.
Tip: Learn more about the history and use of asbestos by visiting Asbestos.com.