Calculate The sum Insured of Your Home
Structure of your Home:
The home insurance policy insures the structure of your home for its reconstruction value. Reconstruction value is defined as the cost incurred to reconstruct the home if it is damaged. On the other hand market value is a combination of cost of land, demand & supply scenario, etc.
Sum Insured :
Sum insured is calculated by multiplying the built up area of your home with the construction rate per sq. feet. if your built up area of your home is 1000 sq. feet and the construction rate is Rs. 500 per sq. feet, the sum insured for your home structure is Rs. 5,00,000.
Location:
Insurance Bank are recommend the rate of construction for your location when you are buying online. However, this value can be revised appropriately if expensive material – like marble flooring, etc. – has been used in construction. If your home has lawn / garden surrounded by a perimeter wall, the construction rate can be revised to include the cost of construction of this wall in home structure sum insured.
The contents of your home:
furniture, durables, clothes, utensils, jewelry, etc. – are to be valued on market value basis i.e. the current market value of similar items after depreciation. Depreciation does not apply for jewellery.