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Want to Check Property Insurance Premium? Here’s Everything You Should Know

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Buying a home is indeed a milestone achievement for majority in India. It is advisable to secure your home with the best property insurance policy as it will safeguard your residences against loses that might occur due to unforeseen events. However, while buying the home insurance policy, many people face difficulty in calculating the property insurance premium. There are various factors which you need to keep in mind before buying the home insurance policy, as it plays a major role in deciding the premium for property insurance. In this article, we will tell you how you should go about in checking and calculating the property insurance premium.

Types of Property Insurance

Here are following three types of property insurance which HDFC ERGO offers

1. Bharat Griha Raksha

Bharat Griha Raksha is a standard home insurance policy which has been made mandatory by the Insurance Regulatory and Development Authority of India (IRDAI) for every insurer to offer with effect from April 1, 2021. The key features of this policy is that it covers your property and its content upto 10 years. It has a waiver of under-insurance and an auto-escalation of 10% every year. Also, there is in-built add on cover for terrorism and rent for alternate accommodation.

2. Home Shield Insurance

Home Shield insurance provides a comprehensive cover for your assets for as long as up to 5 years. HDFC ERGO Home Shield Insurance covers the real value of the property as mentioned in the registered agreement of the property and it also offers optional covers to personalize the plan for meeting individual requirements. This policy provides optional cover like rent for alternate accommodation, loss of rent, portable equipment cover to name a few.

3. Home Insurance

A home insurance policy will avoid help avoid loss of financial expense which might happen due to unforeseen events like flood, theft, fire, etc. This policy also comes along with various add-ons to meet individual requirements.

Factors that Affect Premium of Property Insurance

• Geographical Location:

The geographical location of the property help the insurer determine environmental risks like an earthquake, flooding, etc. For instance, if your house is on a hilly terrain or very close to the sea shore, the premium can be higher for your property.

• Safety Equipments:

If your residence is equipped with safety equipments like CCTVs, fire alarm, etc, it can help reduce the premium of property insurance.

• Age of Building:

Older buildings are prone to losses or damages, hence insurer can charge higher premium for properties which are in these construction type building. Also, the properties made of non-flammable materials will have less premium compared to one made of wood.

• Property Usage:

The usage of your property also decides its premium as it deals with the level and type of risk the insurer may face. Residential properties like apartments or houses have a low premium compared to commercial buildings.

• Claim Deduction vs Replacement Value:

As per the replacement value cover, the insurer makes a payout sufficient for replacing the damaged items with new equipment. However, in other options, the insurance provider makes the payout after deducting the depreciation. In this way, these types of property insurance policies cost comparatively lesser. So, you can select the one as per your needs and requirement.

How to Calculate Premium

You can visit HDFC ERGO’s website and calculate insurance premium in four easy steps. An approximate amount can be calculated that will be needed to pay for property insurance. These insurance premium calculators are simple to use and extremely convenient.

Here are following steps to follow for calculation property insurance premium:

Step 1 – Fill the details of who you want to insure.

Step 2 – Fill in property details.

Step 3 – Choose sum insured.

Step 4 – Calculate premium.

Conclusion

The risk of maintaining a property in India is high, as the nation is prone to natural calamities like floods, earthquakes, etc. In this scenario, it is wise not to ignore buying a property insurance. The above-mentioned factors will help you get a clear picture about how premium for property insurance is calculated. You can check out HDFC ERGO home insurance policy which comes which covers belongings upto Rs 25 lakhs.

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

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