Property Insurance Calculator

Property - whether residential or commercial - is subject to different kinds of risks.  Theft, arson, earth quake or war may partially or completely destroy the premises or its contents.  The owner of the property can safeguard himself against losses caused by such events by taking property insurance.  A property insurance calculator would help to get an idea of the cost of insuring property.

Online Property Insurance

A person who has decided to take property insurance would first have to find out which insurers offer this product, the coverage available, the premium that has to be paid and so on.  Contacting insurers individually is one way of getting this information.  The services of insurance agents can also be availed.  But probably the most convenient and quickest way of getting this data would be by going online.  One can either visit the web sites of insurers or an insurance site which is connected to various insurers.  In addition to information about the rates and terms of property insurance, a website has the additional advantage of having an online property insurance calculator.

Property Insurance Calculator

Before taking property insurance, a property owner would like to have an idea of the kind of expenditure that is involved.  An online property insurance calculator would help him to arrive at the ballpark figure of the premium to be paid.

 He would be asked to enter details like -

  • Type of building, whether residential or commercial
  • Cost of the building
  • Description of the building
  • Kind of flooring –what kind of tiles are used
  • Kind of ceiling-whether made up of sheets or concrete
  • Kind of walls – whether painted or tiled
  • Number of floors
  • Location of the building
  • Floor area

The owner will also be asked for the period for which he wants to take property insurance.  Not only it is safer to opt for a longer tenure, insurers also generally offer discounts for policies taken for long periods.
After this information is filled in, the property insurance calculator will display the premium that the property owner would have to pay.

Property Insurance – Home vs. Commercial

Property Insurance taken for the home will generally protect the owner from losses caused by damage to the structure or the contents of the home by fire, lightning, explosion and so on.  Insurance taken for commercial property will offer similar kind of protection to the owner protecting him from loss caused by events such as burglary and fire and may even cover equipment in the commercial structure like plant and machinery.  The rates of insurance for homes and commercial structures displayed by the property insurance calculator may differ.

Insured Perils

The following is an exhaustive list of insured perils generally covered by property insurance

  • Fire
  • Lightning
  • Riots
  • Explosion
  • Storm – cyclone / hurricane / tornado
  • Landslides
  • Earthquakes
  • Bush fire

Extra Benefits offered by Property Insurers

Though one can roughly get an idea of how much needs to be paid for insurance by using the property insurance calculator, one also needs to consider benefits offered by insurers when claims arise.  To attract customers, insurers often offer facilities like compensation for fees charged by architects and surveyors.  Some even offer a percentage of the claim amount for debris removal when there are damages to the structure.

Replacement Value Vs. Actual Cash Value

The property insurance calculator may also not take into consideration whether the owner wants to take a ‘replacement value’ policy or an ‘actual cash value’ policy.  When the insured opts for ‘replacement value’, he will be indemnified by the insurance company to the extent of the cost of replacing the damage property.  On the other hand, taking an ‘actual cash value’ policy would mean that the compensation amount would be the replacement cost adjusted for appreciation or depreciation.

Property insurance protects one from natural as well as manmade hazards.  A property owner should not put off buying property insurance and the process can be initiated by first estimating the cost of insurance by using a property insurance calculator.

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