Home Insurance Calculator

The amount of home insurance premium that a home owner has to pay is derived on the basis of a number of factors. Some of these factors include:

The location of you home: This is perhaps the most important factor that determines the amount of home insurance premium. Each area is more prone to certain risks than others. For instance, if you live in an area that has a high crime rate and opt for a burglary or vandalism cover, your insurance premium is likely to be higher. Looking at another scenario, if your home is located only a few buildings away from a fire station and you opt for a simple HO-1 home insurance that offers basic coverage against loss or damage caused due to fire or lightening, your insurance premium is likely to be very low. Similarly, if your home is located in a hurricane prone area, your insurance cost will be higher if you have opted for windstorm coverage.

Replacement value of your home: Today, most home insurance policies offer to cover the replacement cost of your home. This is particularly true in case of newer homes that have been constructed in the last ten years. Thus, your insurance value should cover the cost of replacing your home if damaged by an insured peril. Nonetheless, it does not cover any expenses that you may have to incur to repair the land on which your home will be built.

Age, size and construction type: The value of your home insurance policy depends largely on the size of your home and the building materials that were used in its construction. In case you house have been built in accordance to the newer building codes that require the use of stronger materials, the same should be accounted for in your insurance value and premium amount. The older and larger the home, the more costly they will be to insure.

Replacement value of personal effects: As most home insurance policies comprise of building insurance and contents insurance, the value of the insured riders play a vital role in calculating the cost of your policy. Some of the most common riders included in home insurance policies are jewelry, electronics, furniture, clothing and expensive home appliances. To ensure that you do not under or over insure these contents, prepare an inventory of the same, better still make a video recording of the same, and assess their replacement cost. You should prepare this inventory on a regular basis and make changes in coverage accordingly.

Personal liability protection coverage against injury or damage to the property: A home insurance policy not only offers coverage for your home and priceless possessions but also provides protection to the policy holder, his family members and even pets against personal liability for any physical injury that a person suffers within the home. This also includes the provision of paying the legal expenses for fighting a law suit that has been filed by a third party in this regard.

All these factors take together will help you arrive at the amount of home insurance you need.