it is important for us to know how to calculate home insurance

Before applying for insurance, it is important for us to know how to calculate home insurance.

This step is intended so that we know the amount of premium that must be paid per year. In general, the premium or rate has actually been determined by the Financial Services Authority . Therefore, whatever insurance institution is chosen, the premium value in each place is generally the same. To find out the amount of property insurance premiums, there is a calculation formula that you can use.

The formula is "Premium = (Insured Sum x Rate) + Other Costs." What is Sum Insured and Other Fees? Before finding out how to calculate home insurance using the premium calculation formula, it's a good idea to know the definition of sum assured and other costs first.

Sum insured Sum insured is the value or amount of the insurance policy you choose. To get this value, there are several calculation steps that we need to know. For example, like a residential house, the owner only knows the cost of goods sold for the house even though this figure is not included in the coverage section. The purchase value is stated on the component of the land on which the building stands, even if the building burns down or has been razed to the ground. The following are the values of building components in insurance premiums based on the area and class of the building:

Construction class 1, permanent or concrete buildings

Construction class 2, permanent buildings are less than 20% of non-permanent buildings

Construction class 3, beyond classes 1 and 2

Other Fees

These other costs can change in many ways, such as administration fees or stamp fees. Even though the amount is relatively cheap, it is very important for us to take these costs into account.

Based on the experience of various people, other costs for applying for property insurance are generally no more than IDR 50 thousand. Therefore, prepare more money to pay these costs, OK?