Home insurance industry offers products that provide you with certain assurances at every moment of your life. By securing your loved ones, your health, your home, your car, your belongings, your professional responsibilities, your obligations, in short, everything that belongs to you, you can protect yourself from various risks and from material and moral damages that may arise. Housing insurance, which is among these products, makes you feel safe against any surprises that may occur in the home that you share with your family and loved ones. With Insurance Company comprehensive home insurance products, which have left two centuries behind in the insurance sector, you can purchase all kinds of insurance you need against the risks in your home.
How are Home Insurance Premiums Calculated?
Housing insurance products are products designed in detail from A to Z with assurance fees while protecting you against all the risks you may think of regarding your home. You can comprehensively cover all risks, from natural disasters such as earthquakes, storms, floods, damage that may occur in your home such as fire, floods, to maintenance and repair costs, to financial losses that you may incur due to inflation, and even to your various responsibilities in the focus of your home. Since it contains such comprehensive coverage, many details can be mentioned in home insurance calculation techniques. Your insurance cost is determined by calculating different premiums according to the home insurance coverage and the coverages in your policy.
Home insurances can be standard policies or they are contracts made based on mutual agreement between the insurance company and the policyholder or the insured. In addition to the standard coverages that your insurance company or agency will offer you, the coverage that can be added to the policy in line with your demands plays an important role in determining the home insurance prices. In the renewal process of existing housing insurance, additional discounts are applied if the guarantees are not used in the previous period. In terms of general conditions, the issues taken into account in the calculation methods of home insurance can be explained under 5 main headings.
Building Insurance Fee
The main guarantee in housing insurance is the amount of coverage given for your building. Many technical details are taken into account when calculating the insurance cost for your building. Criteria such as the age and size of your building are the main factors in determining the building coverage in your home insurance policy. According to the housing insurance legislation in force in Turkey, the building insurance cost is calculated by multiplying the gross area of your building and the unit square meter price determined over the reconstruction cost.
Housing construction cost is not the price used in the purchase and sale of the house, but the cost that will arise if it is rebuilt. As such, the land cost of your building and therefore the location of your building are not included in the calculation. Housing construction costs are determined by the Ministry of Environment and Urbanization every year and are announced by updating according to the inflation rate of that year. Although it is a technical detail, different classification methods are used, including luxury construction, simple construction, first, second and third class construction costs. Cost items and rates of housing construction are also determined by law.
If there are installations and systems such as elevator, air conditioner, ventilation systems, floor heating, heating boiler in your building, these are also added to the building cost. In addition to the building cost, if you have decoration expenses in your home, you can declare them in your housing insurance policies. As a result of the calculations according to technical details by the experts of the subject, your building value is determined and the building insurance cost is stated in your policy.
Goods Insurance Fee
In housing insurance, you can ensure your property as well as your financial losses against damage to the goods inside your house. In the event of risks such as theft, fire, flooding, damages to these items are covered by the policy. The guarantees that secure the belongings in your home may differ depending on the type and scope of your home insurance product. In the insurance product, you will buy, which items are covered by the insurance are clearly stated in your policy. Commonly, standard coverages in home insurance include personal items such as computers, game consoles, electrical and electronic equipment, medical devices, as well as basic items such as doors, windows, cabinets, furniture, white goods such as refrigerator washing machines, kitchenware. Again, as specified in the policy, risks that may cause loss of valuable documents, cash, and jewelry are among the guarantees that housing insurance can offer.
As the number and quality of the items to be covered in home insurance policies increase, the premium costs of your insurance increase accordingly. Property guarantees in house insurance are based on declaration and the scope of the insurance can be extended according to the demand of the insured or the insured.
Home Insurance Policy Type and Coverage Types
Home insurance policies are very rich in terms of guarantees. In the insurance literature, policy types are classified under three main headings as narrow-scoped, standard-covered, and broad-covered. While premiums are lower in comprehensive home insurance, the number of risks covered is less. As you turn to standard and comprehensive policy types, the number and quality of the risks your insurance cover increase, and the amount of premium you will pay increases.
Many risks may be covered and the forms of collateral for these risks may differ. In terms of home insurance prices, you can be included in the process of determining your premiums by deciding which of these coverages you need and the coverages in your policy.
The costs of insurance types also differ according to insurance companies. Making a decision after examining the risks and guarantees at the home insurance application stage contributes to the optimization of your insurance costs.
Additional Guarantees in Housing Insurance
In recent years, with the developments in the insurance sector and the increase in insurance awareness, the types and scope of guarantees are expanding. In addition to securing your home or your belongings in it, additional services can also be included in the policies. Products that provide all the insurance needs of the insured’s home in a single package play an important role in establishing a feeling of complete trust. In addition to assistance services such as sending doctors, nurses, ambulances, and locksmiths to the residence, you can add additional coverages such as 3rd party liability coverage, loss of rental coverage, vehicle coverage in the garage, damage coverage by pets to third parties, and mini repair packages to your housing insurance policies. These added coverages are the details that determine the cost of your home insurance.