As a financial counselor, I talk to clients all the time about the importance of an emergency fund. Having some money put aside to cover unexpected emergencies gives people some peace of mind and prevents them from putting such expenses on a credit card. In my article, How to Create an Emergency Fund, I outline some basic steps to create such an account. Most of these steps involve setting personal financial goals then saving the money in order to cover the expenses involved with that goal. One of the most important things I tell my clients about creating an emergency fund is to remember to review their family situation every 6-12 months and readjust the amount they’re saving to cover additions to the family such as a new car or a new baby.
After talking with a client recently about his emergency fund, he asked me how much he should be setting aside to cover his new dog. Unlike a new car, there are no dealer-recommended maintenance schedules for animals, so coming up with a similar dollar amount for everyone is almost impossible. Every pet owner, though, should have some funds set aside in case of an emergency with their pet. Although several other financial counselors and advisors have suggested dollar amounts ranging from $500 to $5000, I tell my clients to make sure they have enough set aside to cover all of the following emergencies.
Boarding your pet for two weeks. In the case of a personal emergency for yourself such as a family member becoming ill, you will need to arrange transportation and lodging for yourself. Chances are that during such a situation you will not be able to care for your pet. Even if you usually leave your pet with a friend or family member while you travel, there is no guarantee that they will be able for pet-sitting on such a short notice. Depending on the nature of the emergency (such as a hurricane evacuation), they might even need to travel with you. Pet boarding fees vary by location, the size of the pet, and the amenities offered at the boarding facility, but rates usually range from $25-$60 a day. Keep the name and number of a trusted kennel or vet office with boarding facilities with your emergency contact phone numbers.
Emergency surgery in case of an animal bite. It is much more likely that your pet will be bitten by a stray dog than you. Even if your pet stays in a fenced yard, a stray animal (or even one that has managed to break its leash) can still attack while you are taking your pet on a walk. This money can also cover your pet in case of an accident such as ingesting poisonous house plants or a bad fall. An emergency vet clinic is often very expensive in comparison to regular vet care; expect to pay up to three times what your regular vet would charge for a similar procedure.
The deductible on your homeowner’s or renter’s insurance. Pets are notorious for ruining carpets, rugs, and furniture. Although it is not a good idea to make a lot of little claims against your insurance for items like scratched furniture, you want to protect yourself in case Fido or Fluffy rips up the kitchen linoleum or digs up your sprinkler system.
