How to calculate home insurance costs
Make sure you are well covered to protect your home and its contents with our guide to calculating the cost of home insurance.
How much does home insurance cost?
Calculating the cost, level of coverage and replacement value of home and contents insurance can be tricky. Use our guide to calculate the cost of home insurance and determine how much you need.
When you buy home insurance, you need to know the value of your property and assets to decide on the level of building and contents insurance coverage you need. This in turn will determine the cost of your home insurance. You can also add some helpful extras to make sure you’re fully covered.
You can then use our home insurance calculator to search a range of home insurance quotes from different providers to find the best and cheapest home insurance quote for you.
Calculate the price of home insurance
When looking to purchase home insurance for your home or apartment, there are two types of insurance available to you.
Building home insurance coverage protects your home’s structure and provides insurance against fire, flood, subsidence and reconstruction costs. It only covers the bricks and mortar in your home, not the contents.
You don’t need to calculate the cost of rebuilding your home – your insurer can do it for you. The figure will be based on the rebuilding costs and will not be as high as the market value of the house if you sold it on the open market.
Home insurance coverage protects your belongings inside the house as well as in garages and outbuildings if you choose to include them in the scope of the policy.
You will need to determine for yourself what coverage you need, based on what you have and the cost of replacement. Some insurers provide a checklist so that you can review your assets and estimate or verify their value. It is important to keep receipts for high value items because you will need proof of the amount you paid for them if you need to make a home insurance claim in the future.
Do I need to purchase separate home insurance policies?
If you need to purchase insurance for contents and building insurance, it is worth looking for a quote for double coverage and for each type of coverage separately as well.
Indeed, some insurers may offer you a reduction if you take out home insurance and home insurance as a package. However, if your home has more bedrooms than average, is at higher risk for insurance reasons, or if your contents are of high value, then you might be better off researching separate quotes using our home insurance calculator.
When it comes to property insurance, it may be worthwhile to hire a specialist insurer if you have a lot of valuables in your home. For example, expensive jewelry, artwork, paintings, laptops and other electronic gadgets, or high-end bicycles or other sports equipment.
Do I need to know what my house and its contents are worth?
When you buy building insurance, your insurer will want to calculate how much it will cost to rebuild your house if it is destroyed by fire or other disaster.
Your inventory insurance provider will also need to know the value of anything in your home, such as furniture and possessions.
It’s important to give your home insurance provider accurate numbers for these two values so that you don’t get underinsured.
How do I calculate the amount of home insurance I need?
Building insurance is compulsory if you have a mortgage. Your building insurance company will calculate the rebuilding value of your home, as opposed to its market value.
In addition to covering the structure of the property, building insurance also covers permanent fixtures and fittings such as bathrooms and fitted kitchens.
Contents insurance is not mandatory but it is a good idea as the cost of replacing your belongings if they were stolen or destroyed in a fire could be very high. Also, if there was a fire in your home, they could be damaged by smoke and need to be replaced, or if you have had a water leak, you will need to be able to replace furniture, fixtures and fittings. accessories, including rugs and floor coverings.
Home insurance price calculator
To calculate the value of your content, go from room to room and make a list of what you own and its value. You can also get a quote below to see how much home insurance would cost based on your zip code and number of rooms.
Don’t forget clothing, jewelry and furniture, as well as items that you regularly take with you, such as cell phones and tablets. You can add them as “all peril” or “outside the home” items if you want coverage when you take them out of the house. For bicycles, you may need specialized bicycle insurance if you own particularly valuable road or mountain bikes. Also consider music and other files stored on your computer – you can insure those too.
Include items that were present as well as kitchen equipment, curtains, and equipment stored in a shed or garage. Some home insurers will insist that items over a certain value – typically £ 1,500 – be listed separately.
If you live in a student or shared house, you can purchase home insurance specifically for the items you own, as opposed to your roommates.
How can I save money on my buildings and contents insurance?
Now that you know the amount of home insurance coverage you need, you need to make sure that you are getting the best price for your policy.
You can save money on insurance premiums for your buildings and contents by searching for the best deal
Remember that you only need building insurance if you own the property – if you are a tenant it will be the owner’s responsibility.
A combined buildings and contents insurance policy may be less expensive than separate policies
If your home is secure, you will benefit from cheaper home insurance premiums – make sure you have decent locks and consider installing a burglar alarm.