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Reasons behind High Home Insurance Quote

We buy a home insurance policy to protect our home and its belongings in the event of theft, fire, natural calamity. Insurance companies evaluate risk in different ways, so it becomes important for the buyer to compare home insurance quotes to make sure he gets it at affordable rates.

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You should research different plans provided by the different home insurance companies. So, here are those certain other factors that make your home insurance quote high:

Renovation of House

Home insurers evaluate the premium of the house according to its present condition like amenities, size and in simple words, the overall design of the house. The factors as a buyer that you consider play an important role while purchasing the plan.

For example: Suppose you have bought a home insurance plan with a yearly premium of Rs. 30,000. In that year you made some changes in your house and installed few new things inside your house like a modular kitchen and a home theatre system, then in the next year premium of your home insurance policy will be evaluated after including the modular kitchen and a home theatre system hence increasing the premium rates of your home insurance policy.

Home Insurance Deductible

A deductible is a sum that you pay for risk before the insurer pays the claim. It depends on you that you choose the right deductible amount at the time of purchasing the policy. It is like the lower the deductible the less you save on premiums.

For example The premium amount of your existing policy is Rs. 30,000 and the deductible amount you agreed to pay is Rs. 5,000. The insurer will pay you Rs. 25,000 at the time of claim after cutting out the deductible amount.

Disaster Prone Areas

If your home is in a disaster-prone or a Natural calamity-prone area then it will increase the home insurance premium, while homes located in a low-risk area score lower premiums. It also depends if you live in a densely populated urban area.

For example: If you live in a house that is located in the mountains which is prone to land sliding then the house insurance premium will go high.

Inflation Increases

In India, inflation is touching new heights every other year. Similarly, the insurance companies increase their rates as inflation increases. It depends on the price range of home appliances the rates of insurance are adjusted. For measuring inflation, the insurance company gives the reference of the index of consumer price to adjust its rates. This makes it one of the biggest reasons behind the increment in the premiums of the insurance policy even if nothing has been changed or renovated.

Credit History

If you are an old home insurance policyholder then your credit score will impact the premium rates of the policy. The insurance company checks your credit score. Those people who have a bad credit history like check bounced have seemed like a financial risk by the insurance companies. Poor credit history can increase the premium of your home insurance plan.

Size, Age & Construction

The size of your home, age of your home and how was it constructed are also some of the factors that can impact your home insurance premiums. It is because if you live in a 30-year-old home that has a poor structure and when you decide to rebuild it. Then the premium of your home insurance policy will be evaluated on these things.

Prone to Crime Locality

If you live in an area that is prone to theft and burglary, then this will increase the premium of your home insurance policy. The insurance company evaluates the rate of crime in that area and how much they have paid for theft, burglary at the time of claim. The rate varies out based on your City, Colony or streets.

Conclusion

You make so much effort to build a home. It is important to secure it with home insurance. To buy the best home insurance policy, that gives you good coverage and comes in your budget with lesser premium rates always consider the above-mentioned points. To make the buying process easy, you can always buy your home insurance policy online and choose the right plan.

Written By: PolicyBazaar - Updated: 30 September 2021
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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