Most of us are averse about making an additional investment for home insurance after paying a significant amount as the cost of the home. But after the major destruction caused by the earthquake in Nepal, we are forced to reflect over the tremor bearing capacity of our homes. However, what most of us don’t realize is that the cost of insuring our home is much lesser than we think.
Home insurance does not cover the value of the building but the cost of rebuilding it in case of any casualties. It is as low as Rs 1,800 per square feet for a simpler structure and Rs 3,500 per square feet for a complicated construction. According to a report by Economic Times, a house destroyed by earthquake can be rebuilt at only Rs 6-12 per day.
Tapan Singhel, the MD and CEO of Bajaj Allianz says that the cost of insuring your home against fire and other perils is as low as Rs 60 for every 1 Lakh. This covers both natural and man-made disasters. But it is really surprising to know that only 1% of the people who can afford home insurance actually get their homes insured.
The cost of a home insurance policy depends upon the size of the house and the tenure for which the policy has been taken. For a 2,000 square feet property the insurance will come around 35-40 lakh. If it’s taken for 10 years, the premium will roughly come at 2100-2500 per year. If you increase the tenure, an even lesser amount of premium will be incurred.
Natural calamities come unannounced so it is always better to be prepared in advance. And there is no harm in setting aside a little amount that can support you in the long run.