Whether you rent or own your home is quite a big decision, and it is also a decision that affects your ability to get cheap homeowner insurance. There are positives and negatives to both options. The decision ultimately comes down to factors like, lifestyle, financial situation and overall desire. Here, we will come up with a list of pros and cons to try and help you decide.
Once you own a home it is yours to customize! You are welcome to alter the layout, look and decor without consulting anyone else.
A home is a space that can be modified depending on your circumstances. If you want to build a family, you will have a place where you can grow. If you want to live alone or with a partner, you are not subservient to anyone else’s demands or restrictions.
Buying a home is a long term investment that you can build and improve upon over time.
At the end of the year, the interest you’ve paid on your mortgage can be deducted from your taxes.
If you have a busy life, you may not have enough time to keep a household in good shape. In fact, weekly, monthly and seasonal maintenance may become a hassle.
It will be a commitment if you decide to sell the home or move. You have less flexibility when you own, so if career goals, life circumstances or financials situations change, moving or selling your home can be stressful. Additionally, the value of the home, can fluctuate depending on the market.
When you insure a home you are responsible for everything, from every structure on the property, to the dwelling and its contents. It is undoubtedly a larger insurance expense.
Renting a home or apartment will require less upkeep, as the landlord will bear responsibility for major repairs and maintenance.
The cost of monthly rent can be substantially less than a mortgage payment on a home. This would free up some income for you to save, or to spend in other places.
With renting, unless you’ve signed a contract or a lease, you don’t have a long term obligation to the residence. Even if you do, it is a much smaller commitment then that of a homeowner.
Insurance policies for renters are affordable. However, only your personal items and instances of liability will be covered.
As a tenant, you will be subject to the rules imposed by your landlord. You cannot perform work on the home without permission. There could be additional restrictions involving pets, smoking, etc.
Unlike a monthly mortgage payment, rent is subject to change without warning. In addition, unlike your payment on a home, the money you pay for rent is not an investment.
Without a contract or lease, your landlord has the power to remove you as a tenant at any time.
This decision ultimately effects your expenses, and the type of lifestyle you are going to enjoy. The choice is entirely in your hands! If you need homeowners or renters insurance, you can get a quote with TSC today!