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How do you Calculate Home Insurance Costs?

A home insurance cost calculator will determine how much coverage you should opt for when you are insuring your home. This will help you find out the right amount of coverage that you should have to protect the content and structure of your home from perils like fire, hail and man-made mishaps like impact damages. This amount is calculated on the basis of the area, cost of contents, value of building and other such factors.

Introduction to Home Insurance Cost Calculation

When you speak of all the assets that you own, the first thing that comes to your mind is your home. Not just because it is a costly investment but because it shelters your loved ones, a home will always be your most dear asset. To guard your home and your contents against any unforeseen event, it is always advisable that you secure a comprehensive home insurance policy. Most importantly, you must opt for a home insurance scheme that adequately covers your property and personal belongings.

If you are worried about how to calculate the insurance coverage that you need your home, read on further to find more about home insurance cost calculator that will help you find the right home insurance cover.

Why does the Home Insurance Costs Vary?

The right home insurance coverage must be set at an amount adequate enough to rebuild your house from the ground up in case of a loss or damage. This cost is not equal to the amount that you paid for the house because of the following reasons.

  • The home purchase price includes the land cost also. But since you won’t have to repurchase the land, the insurance coverage cost will include the cost of land.
  • The calculators takes into consideration the features and upgrades of your home.
  • The rebuilding cost will not be influenced by demands for desirable features like good area, premium location etc.

Parameters in Calculation of Home Insurance Coverage

The home insurance coverage cost is decided based on all or some of the following parameters.

  • Plan Type

    The home insurance coverage will depend on if you are insuring the building only or the contents only or both. If you select building only, the value of the home structure will be taken into consideration. For contents, the value of personal belongings and jewelry will be considered. For a plan that encompasses a comprehensive cover for both contents and building, the value of both building and contents will be added.

  • Value of the Building

    The value of the building is the reconstruction cost and not the market value of the property. An optimum coverage should adequately compensate for the rebuilding cost. To find the building value, the built-up area of property and the construction rate per square feet will be multiplied.

    For example, if the built-up area of your home is 1200 sq.ft and the construction cost is Rs.1,500 per sq.ft, the sum insured for the building structure will be Rs.18,00,000.

  • Value of Contents and Jewelry

    While calculating the home insurance coverage costs, you must also specify the value of contents and jewelry. The insurance must be able to sufficiently cover the costs of replacement.

How to Calculate Home Insurance Premium?

After you have calculated the home insurance coverage, you must also compute the premium costs for the home insurance scheme. The premium is calculated based on the following.

  • Type of home ownership - if it is rented or owned.
  • The sum insured which is calculated based on the built-up area and construction cost
  • The cost of contents and belongings including jewelry
  • Add-on covers opted like terrorism cover or all-risk jewelry cover.

In conclusion, only insuring your home is not sufficient - you must insure it for the right amount of coverage so that you don’t have to burn a hole in your pocket in case of an unexpected mishap.

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Customer Reviews

Page 1 of 7 1 2 3 4 5
  • HDFC Ergo Home Insurance
    "Excellent policy"
    0.5 4.0/5 "Great!"
    I live in Jammu , so my area falls in a earth quake zone hence I bought a home insurance policy from HDFC Ergo. The executive has approached me and they will give me a good services. I have purchased the policy around 2 years ago. I pay the premium through auto deduction and this policy covers for 3 years.
    Was this review helpful? 0
    , jammu
    Reviewed on Mar 05, 2020
  • HDFC Ergo
    HDFC Ergo Home Insurance
    "Good insurance plan"
    0.5 5.0/5 "Blown Away!"
    In HDFC bank, they have forced me to take the home insurance from HDFC Ergo when i availed the home also. My home is getting insured for the tenure period of 5 years. I am paying the premium amount of Rs. 500 on a monthly basis. They are giving me a coverage value which is equal to my loan amount. I pay the premium through ECS option.
    Was this review helpful? 2
    , rajkot
    Reviewed on Mar 05, 2020
  • ICICI Lombard Home Insurance
    "Good Insurance plan"
    0.5 5.0/5 "Blown Away!"
    When i took the home loan from Development Credit bank they have recommended me to take the home insurance from ICICI Lombard. When i had some issues, the customer care people are responding well. They have given the claim details and boucher to the customer. I have paid the premium amount of Rs. 40000 which covers for 5 years.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Mar 02, 2020
  • HDFC Ergo Home Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    When i have taken the home loan from City union bank, they have provided me a home insurance from HDFC Ergo. I have paid the premium amount of Rs. 785 which covers for 1 year and i need to renew the policy till the home loan get over. They are giving me a coverage value of Rs. 20 lakhs. I have not claimed anything from this policy.
    Was this review helpful? 0
    , chennai
    Reviewed on Feb 21, 2020
  • review Home Insurance
    "Rules are good in SBI home insurance"
    0.5 3.0/5 "Satisfactory"
    When i purchased my home loan from SBI, they have provided me a home insurance from SBI General Insurance. I have paid the premium amount of Rs. 5000 for the next 3 years and this policy only covers for the property. This like a EMI insurance. They gave me coverage according to the EMI amount. Once the home loan is over, the policy will get lapsed. They are not taking care of the customer in SBI.
    Was this review helpful? 2
    , hyderabad
    Reviewed on Jan 25, 2020
  • ICICI Lombard Home Insurance
    "Unhappy"
    0.5 1.0/5 "Really Bad"
    I am not satisfied with ICICI Lombard for home insurance because the premium is very higher and the claim was not good. I will not recommend and would suggest to go with LIC housing. The premium is 1.30L for 7 years where LIC is charging 60k for 12 years.
    Was this review helpful? 14
    , hyderabad
    Reviewed on Sep 24, 2019
  • HDFC Ergo Home Insurance
    "Good"
    0.5 5.0/5 "Blown Away!"
    I got a home insurance from HDFC ERGO recently and they have been charging be monthly 506rupees which is reasonable and the payment mode is ECS. They have provided me an insurance for 5 years. I have no issues with the service. I don't have claim experience.
    Was this review helpful? 6
    , mumbai
    Reviewed on Sep 14, 2019
  • review Home Insurance
    "Recommendable policy"
    0.5 5.0/5 "Blown Away!"
    When i taken the home loan, they have provided me a home insurance with Reliance. They have provided me a coverage value of Rs. 70 lakhs which is my loan amount. In one shot, i have paid the amount of Rs. 1 lakhs which covers for 15 years. It covers only for the house.
    Was this review helpful? 4
    , bangalore
    Reviewed on Jul 26, 2019
  • Bajaj Allianz Home Insurance
    "Required policy"
    0.5 5.0/5 "Blown Away!"
    It was very fast and i didn't run for any kind of documentation part. Since i took the home loan from Bajaj Finance, they have provided me a home insurance policy with them. I'm not sure about the premium amount. This policy has a coverage of 100% including the hold things.
    Was this review helpful? 5
    , secunderabad
    Reviewed on Jul 24, 2019
  • HDFC Ergo Home Insurance
    "NOT SATISFIED"
    0.5 1.0/5 "Really Bad"
    I have a home insurance with HDFC ERGO GENERAL INSURANCE where the premium paid was 2-3K where the duration of the policy is was 5years but i have canceled the policy within 1 month. The documents submitted was basic documents, but i am not satisfied with the policy.
    Was this review helpful? 6
    , pune
    Reviewed on Jul 13, 2019
  • review Home Insurance
    "Very good policy"
    0.5 5.0/5 "Blown Away!"
    When i taken my home loan, they have given me a home insurance along with the home loan. Since its a compulsory policy, i have purchased the loan. I'm not sure about the insured period. Overall, I'm satisfied with the policy. This policy is covered 100% for the home not for the products.
    Was this review helpful? 3
    , chennai
    Reviewed on Jun 24, 2019
  • Bajaj Allianz Home Insurance
    "Satisfactory"
    0.5 4.0/5 "Great!"
    Its having higer coverage of 2L and the policy is valid for 25 years. Bajaj Allianz has charged me 25K yearly and the benefits are good. It was provided along with my home loan. They have provided me a good service. The documents has been provided to me on time.
    Was this review helpful? 1
    , vadodara
    Reviewed on Jun 22, 2019
  • HDFC Ergo Home Insurance
    "Excellent service"
    0.5 4.0/5 "Great!"
    While i have taken my home loan from HDFC,LTD they have asked me to take a house insurance policy. I pay the premium amount nominal which is applicable till my loan tenure period. It use to get auto debited from my account. They have given me a coverage upto Rs. 5 lakhs for 10 years .
    Was this review helpful? 3
    , ahmedabad
    Reviewed on Jun 11, 2019
  • HDFC Ergo Home Insurance
    "Complicated policy"
    0.5 4.0/5 "Great!"
    While i have taken my home loan from HDFC, they have asked me to take a life insurance policy. I pay the premium amount of Rs. 50000 which is applicable till my loan tenure period. They are deducting the insurance premium amount from loan premium amount. They have given me a coverage upto Rs. 4 lakhs.
    Was this review helpful? 4
    , chennai
    Reviewed on Jun 09, 2019
  • review Home Insurance
    "Better"
    0.5 4.0/5 "Great!"
    I got a home insurance from SBI General Insurance and they have charged 50K for the insurance which was little bit higher when compared to others. They have not sent the insurance paper yet. The policy is valid for 15 years. It covers fire accidents, natural calamities and everything.
    Was this review helpful? 6
    , hyderabad
    Reviewed on Jun 07, 2019
  • review Home Insurance
    "Good Service"
    0.5 4.0/5 "Great!"
    I have taken Health Insurance through Royal Sundaram through Online .I am paying a premium of Rs. 15000 it is a 1year nee to renew each year ,I am paying through by online ,This insurance was referred by Citi Bank .I have not faced any issues so far on using this policy .There are cashless facility as well.
    Was this review helpful? 1
    , bangalore
    Reviewed on May 31, 2019
  • ICICI Lombard Home Insurance
    "Good Service"
    0.5 4.0/5 "Great!"
    I have taken Health insurance policy since got call from ICICI Lombard hence taken the policy.This is a 1year policy need to renew the policy every year ,There is cashless facility on this policy ,premium is very nominal it is Rs.13000 paying through auto debit .I have got the policy documents on time ,Submitted documents also and not gone for any claim so far.
    Was this review helpful? 1
    , thane
    Reviewed on May 28, 2019
  • HDFC Ergo Home Insurance
    "Good"
    0.5 4.0/5 "Great!"
    I got a Home insurance from HDFC ERGO while taking the home loan. The policy is valid for 5years and the premium is reasonable. They have charged me 69K and have received the soft copy of the insurance. The policy coverage is good and it includes natural calamities and fire accident.
    Was this review helpful? 2
    , pune
    Reviewed on Apr 30, 2019
  • HDFC Ergo Home Insurance
    "Good. Can work on the charges"
    0.5 4.0/5 "Great!"
    HDFC Ergo home insurance policy is good and there is a coverage for five years, and I can renew it if I wish too. I also have the option to continue till the loan gets completed. The total amount is of 1.11 Lakhs. I need to pay 700rs on a monthly basis. I suggest that the charges should be on a lower side.
    Was this review helpful? 3
    , ahmedabad
    Reviewed on Apr 29, 2019
  • Bharti Axa Home Insurance
    " Premium should be economical"
    0.5 4.0/5 "Great!"
    I paid premium of Rs.1.5 lakh to Bharti Axa for home insurance it has the tenure upto loan end peroid of 20 years. I believe its covers all natural calamities like earth quake, the premium is huge as compared to others. I got the policy paper through PNB Housing,
    Was this review helpful? 1
    , chennai
    Reviewed on Apr 12, 2019
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