Investing in a home insurance policy is very important, especially taking into consideration the perilous environmental factors. One of the most important parameters while choosing the right home insurance policy for your valuable asset is the cost of the premium.
But, have you ever thought about the factors that might be affecting it? Here are a few factors that affect the premium of your home insurance policy.
While the area of your house is an important factor that determines the premium of your home insurance policy, it is possible that two houses having similar area might have different insurance rates. It is so because the other factors such as location and the coverage also influence the premium amount.
Rate of construction
The ‘per square feet’ cost of construction of your home also regulates the home insurance premium amount. The material used in the construction of your home decides the rate of construction, which in turn decides the premium. Therefore, if a low standard material is used to build your home, then the premium of your home insurance might be on the lower side.
Location of the house
You must have observed that the locality of a property is a huge factor that decides the cost of the house. For eg. in Pune, if you wish to buy a home in Viman Nagar it will be costly and if you wish to buy a home with same area (square feet) in Wagholi, it might cost you much less. Similar is the case with home insurance premium. In addition, if your home is located in an area, which is disaster prone, then the premium cost for the same will vary in comparison to home located in an area less frequented by natural or any other disasters.
Coverage selected by you
Home insurance policies come with various insurance plans. Some plans cover only the structure of the house, while some of them provide coverage for the contents present in the house as well. The coverage chosen by you plays an important role in deciding the premium amount of your home insurance policy.
Add-on covers opted by you
The optional covers selected by you while buying/renewing your home insurance policy also change the premium amount of your home insurance policy. The add-on covers offer an enhanced protection to your home and its contents. At Bajaj Allianz, we offer the following add-on covers:
Characteristics of your home
- Loss of Rent Cover
- Temporary Resettlement cover
- Key and Lock Replacement cover
- ATM withdrawal Robbery cover
- Lost Wallet cover
- Dog Insurance cover
- Public Liability cover
- Employee's Compensation cover
Certain features such as structure type, age, roof type, wiring, the installation of security devices and remodeling of your house along with the construction material also determine the premium amount of your home insurance policy.
Your home is one of the major investments you make in your life and you should check on all these factors before you choose the best home insurance plan
For more information on our home insurance plans, visit Bajaj Allianz's official website