• Whether you reside in an apartment, a house, or a rental space, home always feels like the safest place. Yet, the property you recognize as your home can also be subjected to incidents like theft, natural disasters, etc. In such situations, you might lose your home and its value within minutes. Therefore, acquiring home insurance in India is essential. But what is the cost of home insurance? Let’s discover that in today’s blog.

Factors Influencing Home Insurance Costs

• Sum Insured
The total sum insured represents the highest amount you can receive in the event of a loss. It is one of the factors that affects the price of home insurance. The greater the sum insured, the higher the premium.
• Type of Coverage
Various types of property insurance policies are available for your residence. Basic fire home insurance is less expensive than comprehensive home insurance.
• Age and Condition of the Property
Similar to health insurance, both the age and condition of the property are critical factors that determine home insurance costs.
• Location of the Property
If your property is situated in a high-risk area, the price may be elevated due to increased danger. For instance, if floods or other natural disasters frequently occur in the area where your building is located, you might need to pay a higher premium for building insurance.

How much does home insurance cost in India?

There can’t be a definitive answer to this question, as you just learned that many elements influence the cost of insurance. However, here is a reference point for various types of home insurance.
• Basic Fire Insurance
A basic fire insurance policy that protects the value of your home in the event of a fire costs about ₹1200 – ₹2500. For this premium range, you will receive coverage of approximately ₹10 lakh to ₹20 lakh. This breaks down to ₹3 – ₹8 per day.
• Comprehensive Home Insurance
Comprehensive home insurance that includes coverage for theft, natural disasters, and liabilities costs approximately ₹3500 to ₹5500 for the same level of coverage.
• Content Insurance
It protects the value of valuables in your home and ranges from ₹1000 to ₹2000.

Final Words

In summary, these are the factors and estimates regarding home insurance in India. Obtaining homeowners insurance, or rental home insurance if you are in a rented property, is important. However, getting it from a reputable insurer such as HDFC Ergo is also crucial.
Disclaimer
The information provided above is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before completing the purchase.