Whoever said wishes don’t come true hasn’t explored our offers!

How Much Home Insurance Do I Need

 4.0 / 5.0   by 104 users
Used this product? Write a review >>

Policy Coverage

Customer Service

Plan Options

Claim Experience

As a homeowner, you fully understand the significance of home insurance holds, not just in protecting your house but also your family. So, when it’s time to buy a new insurance policy, how does one decide on the amount of home insurance they require?

The process of estimating just how much insurance your home requires, involves various steps. To begin with, you need to assess the approximate cost of rebuilding your house, followed by estimating the cost of your personal possessions present in the house. Apart from that, you must also consider the cost of your assets present in the house and the cost of liability to others. Another factor to be taken into consideration while assessing the amount of insurance needed is the cost of any alternate / additional living expenses (rent, etc.) which you might have to incur, if your house is rendered uninhabitable due to damage or ongoing repairs.

Cost of Rebuilding Your House

With all other things, construction costs have also gone up since the time you built your house. The cost of rebuilding a house could well be equated to the cost at which you would sell it off at. When it comes to rebuilding your house, there are several factors which come into play. Some of them are:

  1. Built-area of the house / structure.
  2. Local construction costs.
  3. Home exterior material – frame, brick/stone or veneer.
  4. Style of the structure i.e. colonial, cottage, French, Tudor, ranch, etc.
  5. Number of rooms / bathrooms in the house.
  6. Materials used for the roof and type of roof.
  7. Any other structures on the land like a garage or sheds.
  8. Any special features inside or outside the house like fireplaces, arched windows, trims on the exterior.
  9. Whether or not any part of the house was custom built like the kitchen, garage, etc.
  10. Any improvements / alterations done to the structure of the house like addition of another bathroom, enlarging the kitchen, or any other additions which have added to the overall value of the house.

Cost of Personal Possessions & Assets

The cost of personal possessions / assets is covered by most insurance policies. However, there is a specified limit up to which the insurance company will provide cover for these personal possessions, which is usually anywhere between 50% to 70% of the insurance amount of the house. To evaluate the amount of insurance sufficient to cover the value of the contents of your home, you need to carry out an inventory of your home. Make a detailed list of the contents in your house like electronic appliances, kitchen appliances, furniture, furnishings, valuables, etc. and the cost of replacing them, in case they are damaged, destroyed or stolen. You also have the option of choosing between an insurance policy which either provides Actual Cash Value for your lost or damaged goods or covers you for the Replacement Cost.

Cost of Alternate Accommodation

This is one of the most significant features of any home insurance policy which essentially covers you for any cost you might incur towards paying for an alternate or additional accommodation, in case your original accommodation / own house is damaged or destroyed by fire, a storm or any other insured disaster. This part of the insurance policy covers everything from meals, room rent, and any other living expenses which you might incur. This feature is also applicable in cases where a part of your house which has been rented out to a tenant, is damaged due to an insured cause. In this case, the insurance policy will cover the cost of the rent that you may have lost out on, which would have, under normal circumstances, been paid by your tenant.

Liability To Others

Your home insurance policy also covers you against any legal liabilities which may arise, if any third party sustains a bodily injury or property damage on your premises or any such damage which has been caused either by you or any of your family members. The policy shall cover you for the cost of any legal liabilities arising in court which you might have to pay. Different policies provide varying amounts of protection when it comes to legal liabilities. However, it is advisable to opt for a slightly higher sum.

Deductible Amount

Do consider he deductible amount when you are calculating the amount of insurance you must purchase. The higher the amount of the deductible you pay, the lower your insurance premium will be.

In order to calculate the amount of insurance you need to purchase, you could also find assistance online. Online tools like Home Building Calculators or the House Content Calculators are of great help for the purposes which they serve. A House Building Calculator essentially helps in calculating the cost of rebuilding your house, based on the current rates. A Home Contents Calculator helps you make an inventory of the contents of your house like electric appliances, kitchen appliances, entertainment systems, personal computers, etc.

Buying a house insurance policy is a decision which requires a fair amount of research and thought. In order to decide on the most adequate coverage which a policy can provide, you must evaluate the above mentioned factors, before arriving on a figure. Also, it is helpful to consult an agent or insurance expert, who can better guide you through the process and help you with the insurance deal which is best suited for you.

Read More Related Guides

Customer Reviews

Page 1 of 6 1 2 3 4 5
  • HDFC Ergo Home Insurance
    "Should be transparent"
    0.5 2.0/5 "Expected more"
    I took home insurance from HDFC Ergo by paying the premium around Rs. 3 lakhs. In the beginning they were communicated the policy for whole 25 years, now they were telling its only for 5 years. If I want to continue then I need to renew it. The policy is good it covers all natural calamities, fire, rain etc. But they should be transparent in their communication.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 03, 2019
  • ICICI Lombard Home Insurance
    "Good Service provider"
    0.5 5.0/5 "Blown Away!"
    ICICI lombard gave me the medical coverage of Rs. 5 lakhs its entire family. The brand value is good to tie reputed hospital in area. Once I used the policy for dengue fever, they gave me cash less treatment for 10 days, they didn't charge any money. I just submitted medical card and id proof.
    Was this review helpful? 1
    , new delhi
    Reviewed on Nov 10, 2018
  • HDFC Ergo Home Insurance
    "I want to top up my Home loan to HDFC bank home loan departm"
    0.5 4.0/5 "Great!"
    Very good response by bank bazaar to connect HDFC bank home loan web site, very quick response by Bank Bazaar, Iam very happy to say if bank authorities will reply my application I am very thankful to you bank Bazaar.------------------------
    Was this review helpful? 0
    , hyderabad
    Reviewed on Nov 06, 2018
  • HDFC Ergo Home Insurance
    "Good Protection for House"
    0.5 4.0/5 "Great!"
    While I was taking loan from HDFC bank they taken amount for the home insurance for the tenure period of five years. I think they gave me the cover for different calamities, glass, raining, fire etc. But I thought for long tenure but they gave minimal tenure period for the home protection.
    Was this review helpful? 1
    , chennai
    Reviewed on Nov 05, 2018
  • review Home Insurance
    "Safe and secured"
    0.5 4.0/5 "Great!"
    I have paid Rs. 50 to 60k premium for home insurance in SBI General for the tenure of 20 years, they give coverage for natural calamities. The documentation process was smooth and they gave me good policy coverage based on the home valuation.
    Was this review helpful? 0
    , pune
    Reviewed on Sep 29, 2018
  • review Home Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I've a home insurance from the New India Assurance. Considering the nominal premium I pay, the policy offers complete protection for the house and the entire appliances. It is a very useful policy in case of any mis happenings.
    Was this review helpful? 1
    , mumbai
    Reviewed on Jul 28, 2018
  • HDFC Ergo Home Insurance
    "Average Policy"
    0.5 3.0/5 "Satisfactory"
    I have recently got a home insurance with HDFC ERGO one month back, i am satisfied with this insurance policy. I am not aware of the premium amount for this insurance policy. I was informed about the terms and conditions of this policy from the customer service team.
    Was this review helpful? 1
    , ahmedabad
    Reviewed on Jun 05, 2018
  • ICICI Lombard Home Insurance
    "Not satisfied"
    0.5 2.0/5 "Expected more"
    I have a home insurance with ICICI Lombard from last 16 years, they gave the soft copy and hard copy of the insurance on time. A premium of Rs 3130 has to be paid for this home insurance for 15 years. I am happy with the coverage value of this insurance policy.
    Was this review helpful? 1
    , coimbatore
    Reviewed on May 24, 2018
  • HDFC Ergo Home Insurance
    "Good policy to use"
    0.5 3.0/5 "Satisfactory"
    I need to pay the premium amount of Rs,10,000 every year to the home insurance policy . The HDFC ergo has gave me the home insurance policy around 2 years ago. The customer support service is good from the HDFC ergo and I pay the premium amount through ECS mode. This policy has the tenure of 10years.
    Was this review helpful? 0
    , jaipur
    Reviewed on May 03, 2018
  • review Home Insurance
    "Good policy to use"
    0.5 4.0/5 "Great!"
    I have insured my home with the SBI general insurance company. I have got this policy around 5 years ago. This policy has the tenure of 20yeras. I have paid Rs,55000 and it is valid for next 20years and I would say it is a good policy to use, but I never had any claim experience with this policy.
    Was this review helpful? 1
    , bangalore
    Reviewed on Apr 25, 2018
  • HDFC Ergo Home Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    I have a home insurance with HDFC ERGO from last 5 years, i have to make an one time payment for Rs 25000 for this home insurance. I find this insurance policy is best when compared to other insurance companies. I am happy with the coverage value of this insurance.
    Was this review helpful? 1
    , new delhi
    Reviewed on Apr 12, 2018
  • HDFC Ergo Home Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    HDFC ERGO GENERAL INSURANCE company has insured my home because I have got the Home loan from the HDFC limited. I have got the Home insurance policy around 7 months ago from the HDFC ERGO GENERAL INSURANCE company, This policy has the tenure of 25years.
    Was this review helpful? 0
    , bangalore
    Reviewed on Mar 27, 2018
  • review Home Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I have a home insurance with National insurance from last 7 years and it is a good insurance policy. I pay an insurance amount of Rs 7000-8000 for this home insurance. I do not have claim experience so far with this insurance. Customer service was good and they gave all the right information. I am happy with the coverage of this policy.
    Was this review helpful? 0
    , mumbai
    Reviewed on Mar 26, 2018
  • review Home Insurance
    "Average service"
    0.5 3.0/5 "Satisfactory"
    At that time loan disbursement the agent of DFHL cleared all the formalities in getting the home insurance from the CHOLAMANDALAM GENERAL INSURANCE company. I have paid Rs,1,00,000 to get the home insurance policy from the CHOLAMANDALAM GENERAL INSURANCE company.
    Was this review helpful? 2
    , mumbai
    Reviewed on Mar 16, 2018
  • ICICI Lombard Home Insurance
    "Home insurance with ICICI LOMBARD "
    0.5 4.0/5 "Great!"
    I have taken a home insurance from ICICI LOMBARD GENERAL INSURANCE and the premium amount is 550 for a month. This insurance policy covers the damage to the house, any robbery to the house.For natural calamities they wont provide any coverage.
    Was this review helpful? 2
    , vadodara
    Reviewed on Mar 12, 2018
  • HDFC Ergo Home Insurance
    "HDFC ERGO Home insurance"
    0.5 3.0/5 "Satisfactory"
    I have taken a home insurance from HDFC ERGO GENERAL INSURANCE. The premium amount is 1800 per month. They provide insurance for damage of the property. If i loss the job then, for 3 months then the EMI have not to be paid. If death happen to me then they will waive off the loan and the property documents will be returned no need to pay the loan.
    Was this review helpful? 0
    , chennai
    Reviewed on Mar 07, 2018
  • Bajaj Allianz Home Insurance
    "Excellent service"
    0.5 5.0/5 "Blown Away!"
    I have taken a Home insurance with Bajaj Allianz,The policy is for 15 years i paid a premium amount of 8,000.I have no claim experience with till date this was taken since 2013.The premium amount is registered for an auto debit.The customer service is good.
    Was this review helpful? 0
    , kolkata
    Reviewed on Mar 02, 2018
  • review Home Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have insured my home from the NATIONAL INSURANCE company. I have paid Rs,6000 to get this policy . This policy has better plan benefits and the policy coverage with this policy. This policy has the life time tenure . I would say NATIONAL INSURANCE company gives good service to the customers.
    Was this review helpful? 1
    , bhimavaram
    Reviewed on Feb 12, 2018
  • review Home Insurance
    "Better policy to use"
    0.5 5.0/5 "Blown Away!"
    The SBI general insurance has offered me a home loan and they have insured my home as well. This home insurance has the tenure of 15years. The policy coverage and the plan options are good with the SBI general insurance company and I am satisfied getting the home insurance policy with the SBI.
    Was this review helpful? 2
    , bangalore
    Reviewed on Jan 30, 2018
  • ICICI Lombard Home Insurance
    "Excellent service"
    0.5 5.0/5 "Blown Away!"
    I have the Home insurance policy around 10 months ago from ICICI LOMBARD GENERAL INSURANCE. I have paid Rs,48,000 to this home insurance policy . This policy covers the life time tenure. The plan options and the coverage is good with this policy.
    Was this review helpful? 4
    , salem
    Reviewed on Jan 17, 2018
Common Loader Icon
Page 1 of 6 1 2 3 4 5

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.