According to data from the U.S. Census Bureau, homeownership is on the rise again in America after the sharp decline caused by the 2008 financial crisis: according to available data, all of the approximately 4 million new housing units that were added to the American housing stock from 2016 to 2019 are owned rather than rented -- pushing the home ownership rate to slightly above 64 percent.
In other words, more and more people are now owning homes.
If you are a new homeowner, there are quite a few things you need to put in place first. Below are seven such things:
- Get Homeowner Insurance Package
One of the very first things you should do after getting a new home is to secure a homeowner insurance package. There are so many things that could go wrong with your home in the short and near term, and a homeowner insurance package would keep you protected in a lot of ways.
A good homeowner insurance package will protect both from physical damage and natural disasters: this includes damages caused by hurricanes, tornadoes, thunderstorms, wind, a fire outbreak, vandals, or other types of damage.
You’d also be protected in case personal belongings in your home are damaged by any of the things the insurance package covers; this includes belongings such as your electronics, home appliances, and furniture.
More importantly, should your home be damaged, your insurance will cover temporary housing for you until your home is repaired or rebuilt.
That said, homeowner insurance packages differ in how they cover incidences that can be classified as an “act of God,” such as earthquakes and flooding for example, so make sure you have a clear understanding of what the particular package you’re signing up for covers.
- Get a Good Home Warranty Package
While homeowner insurance and home warranty might sound like they do the same thing, they are actually quite different: while homeowner insurance covers the building itself and some of your personal belongings, a home warranty package mainly covers the appliances and systems in your home, making it a lot more cheaper to repair or replace these items in case of a damage at a much lower out-of-pocket cost. Appliances and systems such as your refrigerator, washing machines, dryers, kitchen appliances, plumbing, electrical works, etc, all fall into this category.
A home warranty is a lot more cheaper than a homeowner insurance package and typically lasts for a 12-month period. With the best home warranty companies, you generally don’t have to worry about paying a deductible before the affected item is covered unlike is the case with a homeownership insurance package.
- Install an Home Security System
While many homeowners know the importance of a home security system, a lot of people tend to see it as an afterthought; besides serving as a source of protection for your home, there are actually other benefits to having a home security system.
For example, having a home security system will result in you paying much less for an homeowner insurance package; it isn’t uncommon to get discounts of as much as 20 percent depending on the kind of security system you install. A smoke detector or burglar alarm will get you some discount while a sophisticated sprinkler system or an alarm that connects with policy and emergency services will get you a much better discount.
- Change Your Locks
This is one of the seemingly common sense stuff that many new homeowners tend to overlook, yet it can be a huge lifesaver.
While you might feel as if there’s no need to go through the extra step, you’re not sure who else has your home keys and where they are -- and basic locks will only set you back a little amount, so it’s worth investing the extra amount (and time) to ensure you have better security and peace of mind.
- Research and Understand the Tax Benefits and Incentives Available to You
You might not know this yet, but there are so many tax benefits and incentives available to you as a new homeowner: if you decide to use a renewable energy system, you can get up to a 26 percent tax credit towards setting up the renewable energy system deductible from your federal taxes.
A lot of states and local governments also have property and other tax deductions that new homeowners can take advantage of.
- Keep Proper Record of Your Home Improvement Expenses
Many homeowners do not know this, but there are significant benefits to keeping proper records of how much you spend on improving your home in the case that you eventually have to sell it.
Depending on how many years you lived in your house before you sold it, and your location, you can get tax deductions based on the documented amount you spent on home improvement purposes; this is why it is important to keep proper records and receipts of how much you spent on your home and how much you are spending on home improvement.
- Call 811 Before Digging Anything
Let’s assume you want to dig a hole in your home or you want to dig and build your fence, it’s natural to assume you’re safe to go ahead once you have everything required. Doing this can be dangerous, however.
Don’t dig anything in your home without first calling 811, the national safety hotline for anything digging-related. Calling this hotline is free, and you will usually have personnel in your home within a day to mark locations that are safe to dig.
Calling 811 before digging is important to avoid potential damage to underground pipes, cables, and wires as well as any harm that might result from this damage; you’ll also be on the safer side of the law as not calling 811 before digging in many states could result in a fine.
