Home Insurance Calculator

Home insurance calculator is an online facilitation tool that enables homeowners to check the premium amount for a home insurance plan. It helps them to get an estimate of the premium amount payable for buying insurance for their homes. It also allows them to check the premium payable under various home insurance plans and compare them.

Thus, the home insurance premium calculator is a tool that allows homeowners to know the amount of premium they are likely to pay to get their house as well as its contents insured.

Benefits of Using Home Insurance Calculator

Buying a house is one of the biggest investments you make in your lifetime. This makes it important to protect it for any kinds of risks with the help of home insurance. Before you select a home insurance plan, make sure to utilize the benefits of using a property insurance calculator. Turns out, a home insurance premium calculator is more useful than you realise. Some of the most lucrative benefits of using home insurance calculator are given below:

  • Premium Estimation – A property insurance calculator allows homeowners to get an estimate of the amount of premium they will have to pay for a particular health insurance plan. This enables them to select a plan which fits in their budget and does not cost them a fortune.
  • Compare & Choose – The function of a home insurance calculator is not limited to only calculating the premium. It also enables homeowners to compare the premium charged by different insurance companies. This way they can choose a home insurance plan that provides them with maximum coverage at the lowest possible price.
  • Premiums Based on Coverage Type – No matter the kind of home insurance coverage you are looking for, a property insurance premium calculator will estimate its cost for you. You can check premiums for comprehensive cover or building/ contents cover using this home insurance calculator.
  • No Insurance Agent Required – If you use a property insurance calculator, you don’t have to depend on any insurance agent to choose the best home insurance plan for you. You can compare home insurance plans by different insurers at one place and select a plan that best suits your requirements without burning a hole in your pockets.

How to Use Home Insurance Premium Calculator?

A property insurance premium calculator is very easy to use. The process involves adherence to a few steps given below to get an estimate of the home insurance policy. Take a look:

  • You need to first evaluate the current value of your home and its contents
  • Go to the home insurance calculator page
  • Choose the type of home-ownership between owned and rented
  • Enter all the required details, such as type of house, age of the property, etc.
  • Select the type of coverage you want along with the sum insured/ coverage amount
  • Choose if you want a theft cover or not
  • The estimated premium for buying property insurance for your home will be displayed

Details Required for Home Insurance Premium Calculator

A property insurance premium calculator requires a few details to estimate the cost of a home insurance plan. The information required may vary in the case of owned property and rented property. Here is a list of information that you need to keep handy while using a home insurance calculator for both owned and rented properties:

Owned Property:

  • Age of the building
  • Construction cost
  • Built-up area
  • Value of the contents of the house
  • Owner’s details, such as name, email id, contact number, etc.

Rented Property:

  • Value of the contents of the home, such as jewellery, appliances, etc.
  • Tenant details, such as his name, phone number, email id, etc.

Factors that Affect Home Insurance Premium

Several factors determine the premium of a home insurance policy. Here is a list of all the factors that affect the home insurance premium below:

  • Type of Coverage – The kind of coverage you opt for determines the cost of your home insurance policy. The premium for a comprehensive cover will be higher as compared to coverage for the contents or the building only.
  • Home Insurance Coverage – The amount of coverage or the sum insured that you opt for in your plan influence the premium amount. If you opt for a higher sum insured, you will have to pay a higher premium for your home insurance policy.
  • Cost of Your House – The value of your home comprises of the cost of construction as per the built-up area of the house. The higher the value of your home would be, the more will be the premium amount payable for getting it insured.
  • Contents of the House – If you want to get the contents of your home insured, then the value of your home contents will be taken into consideration to arrive at a premium amount. The higher the value of your home contents will get, the premium amount for your policy will increase.
  • Age of the House – The age of the house also determines the premium of a home insurance policy. As a house gets older, it gets more vulnerable to getting damaged. Therefore, the older the house gets, the higher will be the premium amount payable for insurance.
  • Geographical Location – The place where your house is located also matters when it comes to estimating the price of the insurance policy. Some places are more susceptible to risks, such as natural disasters, as compared to others. Thus, houses in vulnerable areas will attract a higher premium amount as compared to houses located in peaceful areas.
  • Add-On Covers – Additional covers are used to extend the scope of coverage for a home insurance policy. If you decide to buy an add-on cover, such as burglary cover, you will have to pay a higher insurance premium amount.

Home Insurance Calculator- FAQs

  • Can I buy a comprehensive cover if I’m a tenant?

    No. If you are staying in a rented home, you can only get the contents of the house insured.

  • How much does home insurance cost in India?

    The cost of a home insurance policy depends on various factors, such as the type of coverage, age of the property, location of the house, coverage amount, etc. You can check the cost of different home insurance plan using a property insurance calculator before buying a plan.

  • How much should my home insurance be?

    The coverage amount or the sum insured for a home insurance plan depends on the cost of the building and its contents as per the coverage type. Use a property insurance calculator to get an estimate of the home insurance coverage that you need to optimally protect your house from any risks.

  • How can I reduce my home insurance premium?

    Following are some of the ways of reducing your home insurance premium:

    • Compare different property insurance plans using a home insurance calculator
    • Opt for a higher voluntary deductible to earn a discount on premium
    • Do not opt for higher insurance coverage unnecessarily
    • Make your home safer with the help of anti-theft device
    • Look for any available discounts
  • Should I opt for a home insurance cover equal to the purchase price of the house?

    No. Home insurance cover is not equal to the amount you paid for buying the house. This is because the purchasing price includes the price of the land. But in case of rebuilding the house, you won’t have to pay the land cost again. Thus, home insurance cover should be equal to the construction cost of the building and the value of its contents.