Importance of Home Insurance

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.

Is it Better to Rent a House or Buy one?

Has the time come to fulfill your dream of buying a house? Are you  sure you want to buy a house? Do you have enough savings or are you planning to get a home loan? There may be many questions arising in your head. Purchasing a property is a decision to be made after a long analysis and thinking. Go through this article to know if your decision of buying a house is correct or not, or is it preferable to rent. Although the decision depends on personal choice and financial conditions but, here are certain general points to consider.

Advantages of renting over buying

•    A house on rent requires no special maintenance from your side. If something goes wrong or needs to be fixed, it is the headache of the landlord. You just need to call him to get a plumber or electrician repair the damage. Thus, you don't have to worry about huge costs required for maintenance. However, you definitely need to have a budget for small costs that you would have to take care of personally for your home. Buying, on the other hand, will require you to be responsible for all the damage and the costs incurred for them, for which you need to save quite some amount of money.

•     When you buy a house, you need to make sure you are going to spend a couple of years there because home ownership is a long-term commitment. You cannot simply decide on shifting to a new house so easily. While, if you are staying on rent, it is easier for you to move to a new place whenever you wish to. If you have a change in job, you might have a change in location too. You can easily relocate near your workplace if you stay on rent, which cannot be done if you own the property.

•    If at all, you really have to move away, the biggest hassle you have to face is selling your house, which is not an easy task. It might take months and also years together to sell your house. Even if it sells out early, you can't be sure you would get the best price. The market price of selling a property might have depreciated when you want to sell it.

•    You would prefer staying near your workplace. Finding a house in your preferred locality might be costly in terms of purchase but, the same might be reasonably-priced for rent. So, you can always start by staying on rent and if at all, you find the place suitable and you plan for a long stay in the locality, you can always consider buying it later.

•    Buying a house requires upfront payment and other costs like documentation, registration, closing costs, insurance, etc. All this is not required for a rented house.

Advantages of buying over renting

•     First and foremost, a rented home can never be your own forever. It is yours only till you pay for it. Thus, it cannot be your asset and the money you give for it every month is all gone - paid to the landlord - something you won't be seeing again. While, a house you buy can bring you benefits, even if you want to sell it later. Residential properties on an average rise in value between 4 to 6% every year.

•    Just as the price of properties is rising annually, even the rents increase. Once your annual agreement is over, you must be prepared to pay a higher rent the next year. The rising property rates do not affect you once you have bought a house.

•     You cannot design your house as per your choice if you stay on rent. Even for making slight changes, you will require the permission of your landlord. You will not be sure if your requests are approved. It might be a long procedure. Also, if you want any urgent repairs made, you cannot be sure that the landlord will get it done immediately. While, your own house gives you the liberty of making any kind of and any number of changes, without anyone's consent or permission.

•   A home ownership can help you get deeper involvement with the community around. You know you will be staying there for atleast a couple of years. This will help you know one another well and build up better relationships with the people around.

Now that you know what the advantages and limitations of buying and renting a property are, it is for you to decide which is a better option for you after weighing all the pros and cons, and analyzing your financial situation. If you are planning to invest in a property in Bangalore, you should consider Adisesh Green City, which is located near Hoskote, and provides a great healthy and pollution-free atmosphere to live in since it is close to nature, with greenery surrounding the property.