Homeowners Insurance Formula

Our home insurance calculator will quickly give you an estimate of how much dwelling coverage you should carry to fully protect your home.

Homeowners insurance formula. Home insurers rely on data rich variables when they compute the amount of coverage for each homeowner s personal property. Multiply that number by the extent of the loss. Click to share on twitter opens in new window click to share on facebook opens in new window. You can find the average price per square foot in your area by contacting a local builder or contractor.

For home insurance quotes call 314 569 1010 or click below for online quotes. This will give you the amount of the total reimbursement. To calculate the rate takes the rate of insurance and multiply it by the value of the loan. So if for example your dwelling coverage limit is 200 000 your personal property coverage limit would likely be between 100 000 and 150 000 depending on the company and policy you choose.

If and insurer wants to set its premium for a group of homeowners it first divides the losses associated with that group by its exposure the amount of property value insured. These variables include an item s depreciated value replacement cost and. Let our home insurance calculator do the work of estimating your home value and we will do the rest. According to the standard an insurer will only cover the cost of damage to a house or property if the homeowner has purchased insurance.

Home square footage x price per square foot to build in your area replacement cost. Here s a shorthand formula for calculating your home s replacement cost if you re looking to obtain a rough estimate. Mortgage insurance for 15 year loans costs less than for 30 year loans. The 80 rule is adhered to by most insurance companies.