Home Emergency Fund Tool

Estimate how much cash you may need on hand for homeowners insurance deductibles and repair gaps.

This tool focuses on short-term cash needs after a home incident, not total repair cost.

Home & Policy Inputs

Not all repairs are fully covered, even with insurance.

$

Market value of your primary residence.

$

Amount you pay out-of-pocket before insurance kicks in.

$

Estimated cost of non-covered repairs or upgrades required during rebuilding.

Multiplies the fund to account for overlapping risks.

$

Your current available cash for emergencies.

Recommended home emergency fund: $0

This reflects a realistic cash need after a home insurance event.

Deductible
Repair Gap
Risk Buffer
Deductible
Repair Exposure
Risk Buffer

Preparedness Status

Analyzing your reserves...

Cash Gap

Calculating the difference...

Credit Consideration

Backup credit can help but may increase financial risk.

Relying on high-interest credit lines for deductibles can turn a one-time incident into a multi-year debt cycle.

Risk Exposure

Your total immediate liability in a severe event.

The Strategy of Self-Insurance

Why Cash is King

Insurance events are inherently stressful. Having liquid cash available removes the secondary stress of financing repairs. This allows you to focus on restoration rather than interest rates.

Understanding the Gap

Most homeowners only budget for their deductible. However, "actual cash value" policies or non-covered maintenance issues discovered during a claim can create a significant financial gap.

Neutral Analysis

Our tool doesn't sell policies. It provides a mathematical framework to help you understand the tradeoffs between your insurance premiums and the cash reserves needed to support them.