• Change heating and air conditioning filters at least once a month. You may want to invest in good quality filters that last longer. In the spring have your air conditioning unit professionally serviced; in the fall, do the same for your heating unit.
• Have your water heater professionally cleaned at least once a year.
• Check your roof for leaks and clean gutters once a month.
• Call a plumber once a year to check your faucets and toilets.
• Change the batteries of your smoke detector(s) and carbon monoxide detector(s) twice a year.

Enrolling in a home maintenance workshop at a local hardware store can give you the confidence to make your own repairs or improvements. These classes can be very instructive, and stores may offer discount cards or coupons on purchases.

Maintenance costs
The expenses of owning a home go beyond the monthly mortgage and utility payments and can create financial difficulties, particularly for first-time home buyers who have minimal savings. Mechanical failures in the plumbing, electrical and heating systems seem to occur at the worst possible times but have to be repaired.

If you bought a home that was just built, your immediate expenses may be for landscaping, interior decoration and furnishings. Under normal conditions, mechanical items and appliances will be under warranty for six months to a year and will not require a large amount of money but may need minor repairs.

In an older home, replacement of major items can be very expensive. You should know the age of the furnace, hot water heater, air conditioning system, kitchen appliances and roof. Your home inspector’s report should note the ages of these major items. If they are older than half their expected useful life, you will need to plan for the costs of replacement.

If you did not set up a budget for these expenses before you purchased the home, you should begin to accumulate reserves to deal with these emergencies as soon as possible. If you need help protecting your home from the weather, check with local government agencies. Some offer financial assistance programs that pay for maintenance expenses.

Hazards
Many hazards can develop in your home that may cause harm or loss. Although homeowners insurance is there to help, prevention is your best insurance against these types of risks. The U.S. Consumer Product Safety Commission (CPSC) provides information and tools to protect the public from risks of serious injury or death from consumer products under the agency's jurisdiction. The CPSC helps to protect consumers and families from products that pose a fire, electrical, chemical, or mechanical hazard or can injure children. The Web site is http://www.cpsc.gov.

Insurance
Unfortunately, catastrophes and losses to properties may occur at any time. Your homeowners insurance protects your home in case of major damage or loss from hazards that are covered by your policy.

What to do in case of a loss
Below are lists of homeowner duties and insurance company duties in case of a loss.

Homeowner duties

• Provide prompt written notice to the insurance company that you had a loss or damage. Note: If a theft was involved, you must notify the police.
• Take steps to protect the property from further damage.
• Provide a complete inventory of damaged personal property showing the quantity, description and amount of loss.
• Provide receipts and documents if asked to verify the amount claimed.

Insurance company duties

• Receive and process the written notice from the homeowner about the loss.
• Send the homeowner a request to complete a proof-of-loss statement certifying that the loss occurred.
• Upon receipt of the written notification, begin the claim investigation.
• Notify the homeowner in writing whether the claim will be paid, denied or delayed for further investigation.

If your claim is approved, your homeowners insurance company will issue a check to settle the claim. Your mortgage loan may include a clause that requires your lender's name as a co-payee on any claim checks issued to you.

Caution: Consider making minor damage repairs yourself. Claims for minor damages may cause your insurance premiums to increase.

Taxes
In addition to the great feeling of being able to own your own home, you also get another benefit — the mortgage interest deduction. And for 2007, you also may be able to deduct Private Mortgage Insurance — if you pay it. Check out the Form 1040 instructions for 2007.

Have a financial cushion
Whether this is your first home or a move-up, careful planning and budgeting are key to meeting your new financial obligations. Problems you once turned over to the landlord (or your parents) are now your responsibility. And the expenses of maintaining a larger home often grow with its size.

Planning for unexpected situations, as well as the routine costs of owning a home, can help you avoid foreclosure or bankruptcy when emergencies arise. Add the unexpected to your budget. Home buyers with minimal cash reserves can often find themselves in financial difficulties if major systems fail. Your budget also should include a reserve for paying your mortgage in the event of illness or loss of income in the future.

Again, try to start an emergency fund for repairs and appliance replacement. Find out what sources of financing are available when a major item such as the roof or heating system has to be replaced. These are things that can cost thousands of dollars and you may have to finance them through a home equity loan, a second mortgage or an installment loan. Determine which kind of loan you are likely to qualify for, and weigh the pros and cons of the alternatives.