The recent natural calamities have made people realise the importance of home insurance in India. You cannot secure your home against natural perils by installing security system. If some misfortune strikes, it can damage your home or make you homeless. A home insurance policy would pay for the hefty repair cost and bear the expenses in reconstructing the house. A home invites lifetime investment and thus definitely it requires a sound protection. The best part is that home insurance comes at a very affordable price. Now you can secure your home against fire, theft or any other damage by taking home insurance.
Home insurance premium calculator
The premium calculator considers the following two factors:
The premium is based on the sum insured. The insurance policy provides coverage for the structure of the house and has nothing to do with its market value. The reconstruction cost of the house is calculated on the structure of the home. The structure covers your lawn, boundary wall and fencing also. The purpose of insurance is protection and not profitability. Hence, market value is not considered. The sum insured is calculated as follows:
Sum insured=Built up area*construction cost per square feet
If the constructed area of your home is 1500 square feet and cost of construction is Rs 900 per square feet then the sum insured would be 1500*900, i.e., Rs 13,50,00.
Home contents and valuables
Along with the structure you can also insure your valuables and jewellery. If you plan to seek insurance for your valuables then you have to provide the total value of the assets for which you need insurance. The market value of the valuables is assessed and insurance is provided on the market value. The market value is calculated taking into account the depreciation of the asset. This implies that in case of loss the insurance company would pay the claim amount by calculating the cost of purchasing the same type of product, less the depreciation amount.
Safety devices installed
You can also avail a good discount on your premium if you have installed certain safety devices such as peep-hole, anti-theft alarm, fire-fighting system. The safety devices minimize the risk of loss and hence lower your premium.
Exclusions of home insurance
The home insurance is extended towards pucca houses only and excludes the following:
- Damage due to war/invasion
- Damage due to terrorism
- Wilful damage caused by the insured
- Damage due to explosives
- Damage due to deterioration of house
Kirti Saxena is a web enthusiast and a writer for different areas including insurance and banking and numerous other sectors. For more information visit: Home insurance calculator and Home insurance premium calculator .