How to Make Home Insurance and Calculate the Premium

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The house is an asset and a very big achievement for the community. This is certainly very reasonable, considering that the house was obtained with a very long process and hard work over a long period of time.

By looking at these facts, it is only natural that people want all the best care and protection for their homes. The goal is to prevent the house from all kinds of risks of loss that can come at any time, such as natural disasters, fires, or even being affected by riots.

Home insurance is insurance that provides protection against losses due to fire, theft, or damage caused by natural disasters such as earthquakes.

Chairman of the Independent Financial Planning Club (IFPC) Mohamad Andoko said the way to apply for home insurance to an insurance company is actually not as difficult as imagined. The public simply goes to the company's office and fills in some data. Later, the insurance company will survey the house and determine the value of the house.

"What is insured is the building, not the land. We will see how much it is worth, the money. We will investigate first, the insurance person comes to our house, checks what the building is made of, what materials, is it flammable, is it sturdy, from there they will ask how much money is owed , later we just pay the premium," said Andoko to the coil (kumparan.com), Saturday (16/12).

According to him, the policies of each insurance company are of course different. Some companies even rate homes by their access to modes of transportation, such as for firefighters.

"If the house is easily accessible to the firefighters, they can do it. Later they will survey, if it is difficult for the firefighters to access, usually they are a bit difficult, the premium is expensive, or they can be rejected," he explained. 

Home Insurance Claim 

Home insurance claims are actually almost the same as other goods insurance claims. We just need to file an insurance claim accompanied by various evidences. For losses due to fire, for example, a supporting certificate from the Police is also required.

Later, the insurance will re-investigate. "If there are natural disasters, floods, landslides, they can see it easily, they can claim quickly. For fires, they need a certificate from the police, later the insurance people will know, this is natural or not, the fire is intentional or not, if it is reasonable, it is paid," he explained.

Insurance premium 

Reporting from Allianz insurance, there is a simple way to calculate home insurance premiums. For example, if you have a house with a building area of ​​100 square meters, the coverage value of the house is around Rp. 400 million.

The way to calculate the insured value is to calculate the amount of funds that will be needed to build the 100 meter house at this time. If currently Rp 4 million is needed to build every one square meter, then for a house with an area of ​​100 square meters, Rp 400 million will be required.

However, in addition to the physical building of the house, you can also insure the assets contained in the house. For example, the value of your assets is IDR 100 million, then your total coverage is IDR 500 million.

"This insurance value is multiplied by the premium rate calculated in per mil units, for example 0.2194%, so that you finally find the premium value that you must pay every year, which is IDR 450,000 plus administrative fees, so the total is around IDR 1.1 million, " said the statement.

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