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How to Estimate Home Insurance Cost?

There are several ways through which you can estimate home insurance costs. Since your home is your most valued asset of yours, it is suggested to cover it with a home insurance policy. However, when it comes to the cost of home insurance homeowners find it difficult to get an idea of the home insurance cost.

Read more

Estimation of Home Insurance Cost

There are several ways you can estimate the home insurance cost before purchasing it. In order to estimate the home insurance cost, you must be aware of cost-related information about your home and the content kept inside it.

Estimate Rebuilding Cost

When you go on to purchase a home insurance policy, the first thing insurer asks is the build cost of the house.

Case Scenario

Rohan builds a home from scratch and that costs him around Rs 10 Lakh. He chose to cover his home with a home insurance policy. However, he thought to purchase the home insurance policy with a sum insured amount of Rs 5 lakh.

This is where he made a mistake, a few months later, an 8.5 magnitude of earthquake hits his city and his house gets severely damaged and would require proper reconstruction. Then he estimates the rebuilding cost and that comes out more around 8 lakhs.

Since he purchased the home insurance with the sum insured amount of Rs 5 lakh, he is eligible to get Rs 5 lakh only and has to put in extra Rs 3 lakh out of pocket. That is why it is suggested to know the estimated build cost of the home and purchase a home insurance policy with more sum insured amount than the re-build cost. Which in Rohan’s case should be around Rs 11-12 lakh.

Estimate Personal Property Value

Apart from estimating the rebuild cost of the house, make sure to estimate the value of your personal property. The home insurance policy provides coverage for the content of the house such as clothes, furniture electronics, bathroom items, etc.

There are several insurance companies that have limits on high-value items such as jewellery, artwork, etc. If the coverage for such high-value items is not included in the policy then you can opt for add-ons by paying an extra amount.

Conclusion

When you decide to purchase a home insurance policy, it is suggested to check the kind of coverage your desired policy provides and always opt for the sum insured higher than the re-building cost as well as the cost of the content inside the house.

Written By: PolicyBazaar - Updated: 13 December 2022
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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Reviews & Ratings

4.4 / 5 (Based on 120 Reviews)
(Showing Newest 10 reviews)
Virendra
Bokaro, July 26, 2022
Coverage for natural calamity
I was looking for an insurance policy that provides me coverage for natural calamity. Since my house is located near a river and it floods my area in the rainy season. So i went on the Policybazaar website and particularly look for this coverage found the exact plan that provides this coverage.
Sunil
Bilaspur, July 26, 2022
Premium Calculation
I was looking for a home insurance policy online. I stumblled upon the Policybazaar website and it is one of the best online platforms to purchase home insurance policy. I learned about the insurance plan i wanted to purchase and after choosing the plan and add ons i could calculate the premium using their online premium calculator. Thanks Policybazaar.
Manish
Bikaner, July 26, 2022
Natural Calamity cover
I have recently purchased a flat and wanted to cover it with a home insurance policy. I was aware of the Policybazaar website so i thought i should give it a try. I went on their website and as i wanted to cover my flat with a natural calamity cover specifically i searched for it and without wasting a minute it showed me the natural calamity coverage.
Mohit
Amritsar, July 26, 2022
Enough coverage
I was looking for a home insurance plan online. I was fed up as i have to visit different websites to look for a single suitable insurance plan. However, i stumbbled upon Policybazaar website where i was able to find the right insurance plan that could provide me enough coverage.
Sahil
Bareilly, July 26, 2022
Nice customer service
I wanted to purchase a home insurance policy and a friend of mine suggested to purchase it from Policybazaar. I bought the policy and after that i had a confusion regarding exclusions so i called up Policybazaar customer care and they cleared out the confusion and i loved their customer service.
Jitendra
Ajmer, July 26, 2022
Qiuck claim
I purchased a home insurance policy recently. However, due to a natural calamity, my house was damaged as the pressure of the water because of flood broke the enterance door of my house. But the insurance plan that i bought got me covered and i as able to get the quickest claim possible.
Prashant
Delhi, July 26, 2022
Natural calamities covered
I bought a home insurance policy recently. As i live near a river and in the rainy season, my area gets flooded so in order to protect my house and its contents, i purchased the insurance to get coverage for such natual calamities and i am tension free now.
Sharad
Kolkata, July 26, 2022
Wide coverage
The home insurance plan that i purchased from policybazaar's website is a great plan that provides me coverage for not only the structure but also cover several expensive content of the home such as paintings, mobile phones, laptops, television, etc.
Ravi
Ahmedabad, July 26, 2022
Suitable insurance plan
I purchased the group health insurance policy from Policybazaar website. First of all, i did not have to wander much online while lookig for a home insurance plan that fits my requirement and i found the suitbale home insurance plan by comparing different plans on the website.
Yashashvi
Amritsar, June 09, 2022
Natural calamities covered
I bought a home insurance policy recently. As i live near a river and in the rainy season, my area gets flooded so in order to protect my house and its contents, i purchased the insurance to get coverage for such natual calamities and i am tension-free now.
  • Disclaimers+

    #Savings of 28% are based on the comparison between the highest and lowest premiums for a pucca building with sum insured of >₹ 1 crore at Delhi, for property age less than 5 years and policy term of 11 years.

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