Why Is Home Insurance Essential?
How many
times have you heard of or seen on the news channels about natural disasters
like cyclones, earthquakes and floods damaging entire cities? Or have you heard
of a burglary, fire or electrical breakdown in the neighborhood? God forbid
any such thing happens to you where your house or essentials are damaged or
taken away from you. But, it is essential that you be prepared for any such
events to unfortunately occur. Now you may ask what we mean by ‘be prepared’. One
of the most essentials ways is by having your home insured.
What is
home insurance?
There isn’t
much we can do against natural disasters. But, we can definitely take steps to
reduce some of the hardships faced during such times with the help of a home insurance
that protects your home and valuables against any damage. Basically, a home
insurance policy covers damage caused by fire, lightening, flood and storm. You
can get protection against earthquake by paying an extra amount for it. Home
insurance policies may also cover burglary, mechanical breakdown and electrical
breakdown. Other policies may also include protecting everything within your
home including furniture and fixtures. All of this depends on the insurance
company and its rules. If you invest in a great home from a reputed developer,
you can approach the best insurance companies and have your policy request
approved. One such prestigious name is Adisesh Projects who provides the best
villas and Flats in Hoskote around Bangalore.
Why is home
insurance essential?
Home investment is
a big investment
Investing
in a home is a huge one-time investment for many. Investing in a car or large
appliances is also a significant investment but, such possessions start
depreciating in value as soon as you start using them, while the value of a
home tends to increase over time. Having a home insurance policy to help retain
your investment funds should be at the top of your priority list.
It brings peace of
mind
When you
have your home insured, it brings you peace of mind. You can obviously not
prevent disasters like floods and earthquakes coming but, you can rest assured
that even after all these disasters affect your home, you have a safety net
between you and the calamity, which is the home insurance policy that will
cover for all the damage you have faced thus, helping you to maintain the same
financial status level even after being hit badly by the ruins.
Replacement of
valuables
Home
insurance policies not only cover damage to your home but also to the valuables
within your home. So, for any damage done due to burglary or theft, home
insurance pays for your belongings. Similarly, in case of fire or any such
calamity too, the policy will help to pay for repair or replacement of your
expensive belongings. Thus, if you have a home insurance policy, you can rest
relaxed in case of any burglary, theft, fire, etc.
Home loan lenders
ask for it
If you are
looking for a mortgage of refinance, the lender will ask you to provide proof
which shows that your house is effectively insured. They want to make sure that
their financial stakes are protected. Nobody will want to take a risk at
lending money. If you don’t have a home insurance and don’t purchase one within
a given time frame, the lender has the right to cancel the deal or purchase
insurance for your home while adding the premium to your monthly payment. But,
it is always better to purchase a policy on your own base d on your needs and
budget rather than leaving it in the hands of your lender.
