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Responsabiities as a Homeowner
Written by HMDH   

HomeownerFor some individuals, the experience of being a homeowner is incomparable. Although you may have already made the most important payments, keep in mind that there are other expenses such as property taxes, home insurance, and the Homeowners’ Association fees for those who reside in gated communities.

Property Taxes. This tax is based on the total value and location of the property. In Los Angeles, the annual property tax is approximately 1.25% of the total value of the property. For example, if you purchase a home that is worth $400,000, you will pay approximately $5,000 each year in property taxes. You can pay this tax in monthly installments or in a two-year payment plan; in either case, these payments are tax-deductible.

Home Insurance. Provides homeowners with financial security in the event of a natural disaster. This insurance covers any property damages as well as your legal responsibility for damages caused to individuals within your property. There are various types of policies available which offer different levels of coverage. Damages caused by some natural disasters are usually covered by standard policies, but these policies usually do not cover damages caused by flooding and earthquakes. If you want to insure your property against flooding and earthquakes, you must acquire separate policies. Consult your insurance agency for more details.

Homeowners’ Association (HOA) Fee. This is the association of condominium or gated community homeowners. The HOA’s services vary by individual association, and usually require a monthly payment. Some of the services covered by the association are: water and electricity, trash collection, area maintenance and remodeling, and other contingencies. Keep in mind that –for example- to alter the look or form of your home, you must first receive an approval by the HOA; other actions such as fumigation or interior wall demolition must also be approved by the association.

Repairs and Maintenance. When renting a home, the homeowner is usually responsible for any repairs and maintenance. As a homeowner, you are responsible for the home’s general maintenance, which is why we recommend that you keep an extra amount of money for regular maintenance as well as unforeseen repairs.