How Much Does Home Insurance Cost?

Viji is a very friendly neighbour. She lived in a colony where almost everyone was her friend. She was a very hardworking professional who saved every single penny for her dream home. Viji made it happen and recently moved to her new home down the street. She hand-picked all the furniture to suit her style of living and planted beautiful flowers in the garden.

While she was chatting with her new neighbour over the fence, they told her about getting home insurance. Viji started wondering - "Is it something I really need?" "What exactly does it cover? And most importantly, how much does it cost?"

She immediately called her husband and discussed about it. They met insurance agents and googled all that they needed to know. They wanted to ensure that the place where their kids would grow up and make memories would stay safe and secure.

But how does someone like Viji find the right home insurance at a price that fits their budget? To find out more about how much home insurance costs and what it includes, read the article below.

How about we understand what home insurance is first?
 

Home Insurance

Your home is your own space of heaven, right? And home insurance is like having a guardian angel watch over this heaven. Home insurance wraps together multiple shields against mishaps like damage to the residence itself, its contents, or personal belongings. That’s not just it. Beyond that, it steps up to cover additional living expenses in case of displacement and even offers liability protection. This is applicable should accidents occur either at the home or by the owner of the house within the policy's domain.
 

How Much Does Home Insurance Cost?

Well, this really depends on which insurer you choose. Each insurance company crunches their numbers differently using its home insurance premium calculators, but let us break it down for you. Say you insure your home for Rs. 40 lakh for the building and another Rs. 5 lakh for your contents inside. You might have to pay anywhere from Rs. 2,000 to Rs. 4,000 a year. Not too bad, right? But, if you add extra coverage for burglary, personal accident, etc., the price will eventually increase on the calculator.
 

Factors Influencing Home Insurance Costs In India

Some of the factors that affect home insurance in India are -

• Coverage Choices:
  The kind of coverage you opt for will determine how much you spend on premiums. Your monthly payment will probably be higher if you select all-inclusive, comprehensive coverage. However, you may be able to save more money if you choose a simple plan that only includes necessities.
  
  For example,
  Krish buys a new home as a gift for his wife Reena. She was so happy to get such a sweet surprise from her husband. Krish was also planning to buy home insurance and had asked the insurance agent to come meet them directly. Krish was interested in choosing comprehensive coverage. The insurer calculated the premiums payable and informed them that a comprehensive plan would incur comparatively higher premiums, but it is worth the investment.
   
• Cover Amount:
  The amount of coverage you choose, known as the sum insured, directly impacts your premium. Do you want more coverage? Then, you will likely have to pay a higher premium. This decision is purely based on what fits your wallet best.
   
• Home Value:
  The value of your house is another important factor in setting your insurance premium. This is determined by factors like construction costs per square foot.
  
  For instance, Ravi and Raghu are brothers. Each of them buys a house in the neighbourhood so that their children can grow up together. Ravi’s house costs Rs. 50 lakhs and Raghu buys a house worth Rs. 70 lakhs. Here, Raghu will pay a higher premium than Ravi as the value of his house is higher.
   
• Contents Inside:
  Do you have a lot of priced possessions? Do you wish to cover them all? When you decide to cover the contents inside your abode, it is going to impact how much you pay. The higher the value of your belongings, the more you will shell out for your premium.
   
• House Age:
  The age of your house has a big say in how much you will pay for insurance. Older houses can be more prone to wear and tear, which means insurers might charge higher premiums to cover them.
  
  For example,
  Priya just inherited her ancestral property and gave it a new, renovated look. She thought that it was necessary to buy home insurance. Priya found that the premiums were higher than what her friend was paying. When asked, the insurer informed her that older houses tend to have higher maintenance costs, and hence, the premiums will be higher.
   
• Your House’ Location:
  Another important factor is the location of your house when it comes to calculating your insurance premium. If your home is located in an area that is prone to natural disasters or is considered high-risk, you will probably end up paying more for insurance. On the other hand, houses in safer, less risky areas usually come with lower premiums.
  
  For instance, Rishab owns a house in the city. His friend Akbar owns a house in the coastal area of the same city. As Akbar’s house is more prone to natural calamities like tsunami and flood, he will have higher premiums when compared to Rishab.
   
• Extra Coverage Options:
  If you opt for additional riders with your policy, it can help you get enhanced coverage. When you add riders like burglary, theft, or personal accident cover, you should know that your premiums will go up a bit.
   

Home Insurance Premium Calculator

We have all dreaded our maths exam. N number of multiplications and divisions that has to be completed within 3 hours!! But there was always a friendly companion with you- your calculator. Now, you have grown big enough to own a house. Time flies, doesn’t it? When you buy a house with a home loan, insurers make use of a home insurance premium calculator. It is this handy online tool that lets you figure out the cost of a home insurance plan.

Let’s say you are trying to get the best deal on home insurance. This calculator makes it so easy for you to compare different plans. You just provide some basic details about your house, and voila! It shows you the expected premium.

Using this tool, you will get to know exactly what you have to pay, helping you make a smart choice. So, next time you are shopping for home insurance, give the home insurance premium calculator a try. You will surely thank us later!
 

How To Purchase Home Insurance From SMC?

So, you are going to purchase home insurance from SMC? Awesome! Let us walk you through it - it is super simple -

1. First, head over to the SMC website.
2. Right on the home page, you will see a section called "Buy Insurance Online." Click on it, then hit "View All Options" and select "Home Insurance."
3. Now, here's where you need to fill in some details. They will ask for -
   1. Property Type - is it owned or rented?
   2. Pincode
   3. Mobile number
4. After that, you will need to enter a few more specifics -
   1. Occupancy
   2. Value of the building
   3. Area of the building
5. Once you have all that information uploaded, the site will take you to the quote page. Here, you can check out different policies and pick the one that suits you best. After that, just proceed with the payment, and you are all set!
    

To Sum Up,

How much your home insurance costs depends on a few things, like the size of your home, where you live, and what kind of coverage you want. Basically, the cost can vary a lot. But don’t worry! Using tools like a home insurance premium calculator