10/10/2026
The month after closing is the easiest time to set up three habits that protect a house for as long as you own it.
Start a house file. One email inbox or one folder for closing papers, appliance warranties, repair bills and renovation invoices makes everything searchable later. It also has a tax reason. Improvements such as a new roof or a new water heater are added to the home's basis, the figure used to work out the gain when you sell. Ordinary repairs, like repainting or fixing a leak, generally are not. The IRS expects homeowners to keep track of basis for the whole time they own the home, and a single file is the simplest way to do it.
Then build a repair fund. A common rule of thumb is to set aside about 1% of the home's price each year. For a $300,000 house, that is $3,000 a year, or $250 a month. It is a starting point, not an estimate for any particular house. Keeping it in its own savings account at an FDIC-insured bank means the money is insured to at least $250,000 at each bank. Writing down when the roof, furnace and water heater were installed shows which big bill is likely to come next.
Finally, protect the people who live there. If anyone depends on your income to keep the house, term life insurance is designed as lower-cost coverage for a specific period. A policy large enough to pay off the mortgage, for a term that runs at least as long as the loan, keeps the house paid for if the income stops. And check flood coverage: most homeowners insurance does not cover flood damage, so it is bought separately.
Source: IRS Publications 523 and 530; FDIC deposit insurance; FloodSmart.gov (FEMA); National Association of Insurance Commissioners consumer guide to life insurance. All read Oct. 10, 2026.
Educational information only, not financial, tax, legal, or investment advice. Insurance needs and repair costs vary by home, state and family, so compare quotes and check with a licensed professional.
Bryan Curtis | Attain RE
515-770-2491
Owner/Managing Broker
Licensed to Sell in IA, IL, FL, NE