Common Types of Unexpected Expenses

Life throws curveballs. You're managing your everyday bills just fine, and then out of nowhere, your car won't start, your dog needs an emergency vet visit, or your child has a surprise field trip fee. It can be stressful, and when you're not prepared, these moments can feel overwhelming.

That's why it helps to understand and prepare for unexpected expenses. When you know what to look out for, it's easier to plan ahead, even just a little. You’ve got this.

Home and Property Emergencies

Whether you own or rent, when something goes wrong where you live, you have to deal with it. Often immediately. These kinds of expenses can range from inconvenient to downright urgent, and they rarely amount to just your monthly coffee budget. Common home emergencies include: 

• Plumbing issues: A burst pipe, a clogged drain or a leaking water heater can cause serious damage if you don't have it fixed quickly. Hiring a plumber can cost a few hundred dollars for small jobs.
• Heating system failures: If your furnace goes out in the winter or the A/C stops cooling in July, it's not just uncomfortable. It can be unsafe. HVAC repair can be a midrange expense, depending on the complexity.
• Appliance breakdowns: Dishwashers, washers, dryers and refrigerators seem to stop working when you need them most. Callout and repair fees, billed together, can cost a few hundred bucks.
• Roof leaks: Weather-related damage from wind, hail or heavy rain can lead to urgent repairs to prevent further issues like mold or structural damage. You can pay into the double digits per square foot for these repairs on average.

Build an Emergency Fund

Think of your home as a living system. It makes sense that things will wear out or break down. Setting aside even a small amount each month in your emergency savings is important. It can help take the sting out when something goes wrong and provide a safety net for life's "what-ifs." Start with a small goal, such as building up to three to six months' worth of living expenses. Link your savings account to your checking account for overdraft protection, which helps your accounts stay in the positive when you get an out-of-the-blue bill.

Medical and Health Emergencies

These can hit hard — emotionally, physically and financially. You might be surprised by what you need to pay for upfront or even what your insurance doesn't cover. Common emergency medical expenses include:

• Emergency room visits: Accidents like sprains, allergic reactions and sudden fever spikes happen. In these cases, a visit to the emergency room or urgent care is necessary, and it can cost hundreds per visit.
• Unexpected treatments: From a chiropractor visit to in-hospital treatment, even minor procedures can come with big bills, especially if you need anesthesia or follow-up care. Surgical bills are very nuanced, and can be difficult to understand.
• Dental emergencies: A cracked tooth or sudden infection might mean you need immediate care. Fillings can cost thousands of dollars.
• Mental health crises: Therapy, counseling, or even a sudden need for medication can all add up, especially if you're navigating a new diagnosis or treatment plan. The average cost of therapy is moderate per session, but it can add up over time.

Sign up for a Health Savings Account

If you are enrolled in a high-deductible health plan, a Health Savings Account (HSA) could be a good option. An HSA is similar to a personal savings account, but you can only use it to pay for qualified medical expenses. You don't pay tax on the money you add to this account, and whatever you don't use rolls over to the next year, which is tax-free growth. Your withdrawals for qualified medical expenses are also tax-free.

Vehicle and Transportation Expenses

If you rely on a car to get to work, run errands or take care of your family, you know all too well about the domino effect that happens when your vehicle stops working. Some vehicle expenses that catch people off guard include:

• Major repairs: Engine trouble, transmission issues or brake replacements can be costly. Many of these are not covered under your basic warranties. Major car repairs, on a transmission, for example, may cost you a few thousand dollars, depending on the work that needs to be done.
• Unexpected maintenance: Flat tires, battery replacements or fluid leaks often happen out of the blue. You can face a moderate amount of unexpected maintenance costs.
• Accidents: Even with insurance, you might have a deductible, the amount you pay before insurance covers the rest, or need to rent a car while yours is in for repairs. Weekly car rental fees can build up quickly.
• Registration and inspection fees: These pop up annually and can be easy to forget about — until you get a fine for an expired sticker. Fees vary by state but usually cost a couple hundred dollars.

Budget for the Unexpected

It sounds odd — how do you budget for what you don't see coming? It's pretty simple. Add a "miscellaneous" goal under your savings to your monthly budget. Over time, anything you don't use can roll into your emergency fund, adding to your safety net. Setting aside even $50 to $100 a month can build a handy buffer.

More Ways of Dealing With Unexpected Expenses

If your emergency is bigger than your savings can cover, consider taking out a personal loan from a reputable bank. These don't require collateral and allow you to choose from fixed or variable rates for terms ranging from one to five years. You can also consider a line of credit, which works like a credit card. 
You can also find ways to make the most of your insurance coverage. Review your policies yearly to help you spot gaps in coverage or opportunities to increase your coverage.

Why Trust Us

At First Commonwealth Bank, our mission is to improve your financial life. Since 1982, we have served communities in Western and Central Pennsylvania and Ohio, building financial confidence through our four life-changing habits:

• Saving money
• Managing money
• Borrowing money
• Protecting money

We have 127 branch offices with more than 1,500 knowledgeable staff members helping our customers find financial confidence, plan for common types of unexpected expenses and save for retirement.

Plan for the Unexpected With First Commonwealth Bank

You can't always predict when sudden expenses pop up, but you can expect that they will, at some point. Building even a small emergency fund, tracking your irregular expenses and reviewing your insurance coverage are great places to start. 

At First Commonwealth Bank, we have the tools you need to plan for and manage those unexpected expenses. Whether you want to open an account, manage your money, save toward a goal or need assistance, your financial journey matters. Our bank is big enough to deliver these services but small enough to know you by name. It's time to be first in your finances. You’ve got this.
Contact us today to get started.