Home Insurance in India: Cost and Factors that Influence The Premium

Posted on: Jul 2, 2024 | 3 mins | Written by: HDFC ERGO Team

Home Insurance in India: Cost and Factors that Influence The Premium

Whether you live in a flat, a house, or a rented property, home always feels like the safest place. However, the property you know as your home can also get into a casualty like theft, natural disaster, etc. In such a case, you may lose your home and its value in a few minutes. Hence, having home insurance in India is very important. But how much does home insurance cost? Let's find it out in today's blog.

Factors Influencing Home Insurance Costs

• Sum Insured

The total sum insured is the maximum amount you can get in case of casualty. It is one of the factors that influences the cost of home insurance. The higher the sum insured, the higher the premium.

• Type of Coverage

There are different types of property insurance policies that you can get for your house. Basic fire home insurance costs less than comprehensive home insurance.

• Age and Condition of the Property

Like health insurance, the age and condition of the property are also the deciding factors of home insurance cost.

• Location of the Property

If your property is in a risk-prone area, the cost may be higher due to increased risk. For instance, if floods or any other type of natural disaster is common in the area where your building is located, you may have to pay a higher cost for building insurance.

How much does home insurance cost in India?

There can't be a fixed answer to this question, as you just learned above that many factors decide the cost of insurance. However, here is a point of reference for the different types of home insurance.

• Basic Fire Insurance

A basic fire insurance policy that covers the cost of your home in case of fire costs around ₹1200 - ₹2500. For this premium range, you'll get coverage of around ₹10 lakh to ₹20 lakh. It comes down to ₹3 - ₹8 per day.

• Comprehensive Home Insurance

Comprehensive home insurance with coverage for theft, natural disasters and liabilities cost around ₹3500 to ₹5500 for the same range of coverage.

• Content Insurance

It covers the price of valuables in your house and ranges between ₹1000 to ₹2000.

Final Words

In conclusion, these are the factors and estimates of home insurance in India. Having home owners insurance, or rental home insurance if you live in a rented property is important. But getting it from a renowned insurer like HDFC Ergo is crucial, too.

Disclaimer The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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