Home Insurance Cost Calculator

Home insurance cost calculators may cause some confusion since their main aim is not to estimate a final cost of some policy, but to analyze your dwelling coverage.

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The dwelling coverage constitutes one of 6 main types of home insurance coverage. Besides, that is the first idea many people have while talking about homeowners plan. On the whole, this policy protects your house building from any influence, including fire, hail or wind. Protection means the sum of money that will be provided for repair works in case of such events.

What Does Home Insurance Calculator Show?

As it was already mentioned, such calculators are used to demonstrate dwelling coverage, the amount of which isn’t fixed because it always varies significantly, depending on an individual set of affairs. The only aspect that never changes is the sum that will be appointed from the very beginning since it supposes to cover all repair works at your place in case of emergency.

Most people expect to see this sum as big as the cost of the house, but it’s smaller because of the some other reasons.

Сost of the Land

A full price includes the cost of the land as well, but you don’t have to buy it again since the coverage goes only for repair of your house building. That's why some policy could have higher price.

Price Depends on Location

The purchase price also doesn’t consider such aspects as a location regarding the city center, school, and other facilities. Again, they don’t have anything in common with repair works and their cost.

How Does Calculator Work?

The main method of all calculators is to multiply the square footage of your house by the cost of its construction on the local level. That’s why all of them ask about zip code. The following aspects are usually estimated:

  • Standard features – that is how to estimate the replacement of basic buildings with new upgrades.
  • Some upgrades – to take into account those aspects like granite stairs or wood floors
  • Substantial upgrades – to consider all upgrades that may be added by a person.

All these sums and numbers will be counted and provided for you if you turn to some home insurance calculators.

Calculators and Coverage Limits

You already know how the calculator provides the dwelling coverage and so now it’s time to take into consideration possible coverage limits. They are determined for 3 out of 5 coverages from a standard insurance plan and are set in the form of percentage you have to pay for your dwelling coverage.

  • Various structures. It refers not to the house itself, but to its adjoining buildings like garage, fence or sheds. The coverage limit always amounts to 10% of your dwelling coverage. It supposes that if your coverage is $200,000, then this limit will reach up to $20,000.
  • Personal possessions. It goes for cases when your things or items were damaged or stolen. In this case, the limit varies from 50 to 70%. Thus, if your dwelling coverage is about $200,000, then the limits will reach up to $100,000-$140,000 for your possessions like clothing, furniture or electronics.
  • Loss of use. If the damage made you leave your house as it’s impossible to live there, this coverage will assist you in paying for bills from hotels or cafes. The limit is set as 20% of your coverage and that means $40,000 from the sum of $200,000.

Limits for 2 other types of dwelling coverages are tied for your particular case.

Get Your Dwelling Coverage with Minimal Rates!

As have you already read about all important issues and features of home insurance cost calculator, it’s time to get to know with some useful pieces of advice to make your rates become lower.

  • If you have already signed a document for home insurance, then you’d better examine it in detail. If you haven’t chosen the company yet, spend some to look for the best coverages by getting different quotes from various insurers.
  • Install a security system. It will not only make your home safer, but inform insurance company of your care and reliability. The amount of money you may save this way depends on the company and your state.
  • Have a list of all your valuables at hand. First of all, you will have a chance to choose the best insurance coverage. Secondly, it will be easy for you to state which things were broken, damaged or stolen in case of some emergency. We also recommend you to take pictures of them for better obviousness and visual proof. Besides, insurers appreciate such careful homeowners.
  • Fix your credit. It won’t do well for you if your credit score is poor. So, make all efforts to improve it by changing the main name in your insurance plan, installing alarms, etc.

These simple measures combined together will allow you counting on good rates that you will afford without any financial difficulties.