Having a dwelling certainly has to take into account the protection of your home. Home insurance is not as popular as life insurance or many people are not yet aware of the importance of home insurance, but protecting your home has the same benefits as life insurance, but your home is primary Considering that it is even more necessary.
What is Home Insurance?
Home insurance aims to provide maximum protection for your home against a variety of risks that can harm your finances. These risks include fire, natural disaster damage, and theft loss.
Types of Home Insurance
1. All real estate risks or all industrial risks
All risks of property insurance or all types of risks in industry are unnamed and dangerous home insurance. An unnamed risk is a guarantee of protection given to the insured’s property and interests at risk.
Insurance makes exceptions to uninsured items such as war, terrorism, nuclear weapons, and radioactivity. In general, this type of home insurance is non-industrial insurance for offices, hospitals, schools, etc. Special insurance is generally used for industrial buildings such as factories, but the type of insurance is the all-risk industry.
2. Fire Insurance Standard Policy
PSAKI insurance is protection provided as a form of service from fire insurance. This insurance has the property of protecting homes and other types of buildings from loss due to risks such as fire. Risks are property losses caused by fires, plane crashes, explosions, lightning and smoke.
Tips For Choosing Home Insurance
Before deciding which home insurance to choose for protection, consider the following:
1. Reliable insurance company
Choose a home insurance product that is trusted, registered, licensed and supervised by the Financial Services Authority. This is to minimize the risk of fraud that can occur. In addition, look for an insurance company that is very well known for its excellent service. That way, when you want to make a claim, it won’t be difficult. Don’t forget to know the credibility and experience of the insurance company.
2. Pay attention to the type of home insurance for the product
As mentioned earlier, there are two types of home insurance: real estate all-risk insurance and fire insurance. So you need to have different insurance that suits your needs.
3. Please read the policy carefully
Please read this carefully when taking out insurance. You usually have time to consider policies or free lock periods that last up to 14 days. In the last two weeks, you’ll learn more about police and see the benefits of eliminating risk according to your needs.
4. Make sure the benefits offered are sufficient
This can be confirmed through the insurance amount or the nominal compensation stated on the insurance policy. Then compare the insurance amount with the estimated price of home construction in the event of a risk. The larger your home, the greater the need for insurance and the higher the amount of insurance you need.
How to Calculate Home Insurance
1. Building a premium
For the building to use, you just need to know the insurance amount of the house just by calculating the building. An easy way to calculate your insurance amount is to know the area of the building against the cost of building a house.
The insured’s house covers an area of 200 m2 and the cost of construction is $ 1000 / m2. For this value, the required nominal insurance amount (UP) is:
Building Value: $ 1000 / m2 x 200 m2 = $ 200,000
Once you know the value of the building, you can calculate your home insurance premium, or prime rate to be charged. For example, insurance company A has a premium rate of 0.2194%. Therefore, the premium paid for an insurance amount of $ 200,000 is:
Insurance premium: $ 200,000 x 0.2194% = $ 438
In other words, the annual premium for insurance for a 200m2 home from insurance company A is $ 438.
2. Building and Content Premium
Building insurance and content insurance require the same coverage as building insurance. The formula to calculate it is:
For example, for the same building coverage as in the example above, $ 200,000 + building content is $ 50,000. Therefore, the annual premiums paid are:
Insurance premium: $ 250,000 x 0.2194% = $ 548
In conclusion, insurance company A’s annual premium for a 200m2 home building and contents is $ 548.