How is the price of comprehensive home insurance calculated?

Protecting your home and your family is the best way to deal with any unforeseen events. A serious incident at your home or an accident involving the people and pets who live there can cause significant worry and financial burdens. That’s why comprehensive home insurance is an ideal solution for anyone seeking peace of mind.

With this home insurance, you not only ensure protection for your home and its contents, but also for its occupants. And although this plan is not required by law, banks require this type of insurance when you take out a mortgage.

That’s why it’s important to understand how insurance premiums are calculated so you can find the best home insurance rates. In this article, we’ll outline the factors that most influence the premium amount and explain how you can get a quote from EXS.

What are the criteria used to calculate the price of comprehensive home insurance?

As with any policy, the cost of this home insurance is neither fixed nor uniform. It depends on many factors, in addition to the selected coverage, the specified insured amount, and the offers from insurance companies.

It is true that the more coverage options you choose and the higher the insured amount, the higher the cost of the insurance premium will be. However, in addition to these criteria, there are other variables that influence the calculation of the price of comprehensive home insurance.

Below are some of the key criteria.

Filling

After all, what constitutes the contents of a home? The contents refer to all the possessions you place inside your home from the day you purchase it. This includes furniture, appliances, kitchenware and other kitchen equipment, curtains and rugs, and valuable items such as jewelry, paintings, video and still cameras, and audio equipment, among others.

Therefore, if you want coverage for the contents of your home, make sure the insured amount covers the replacement cost of your belongings. This is the only way to ensure that the affected items will be replaced in the event of a fire, flood, or other loss.

To do so, you must provide detailed information in the proposal, including the name, model, and brand of the equipment. You should also keep photographs and other documentation as proof that you are the rightful owner of these items.

However, keep in mind that the higher the total value of your household contents, the greater their weight will be in the calculation of your comprehensive home insurance premium. Therefore, be precise when calculating the value of your belongings so that you receive fair compensation and do not inflate the monthly premium for your policy too much.

Value of the building

The premium for comprehensive home insurance also varies depending on the value of your home. Certain characteristics of the property are taken into account for the assessment, such as location, year of construction, living area, type of construction, and the materials used.

The cost of comprehensive home insurance is calculated based on the reconstruction value of your home. In other words, it is important to determine how much it would cost to rebuild your property in the event of destruction caused by a fire or flood, for example.

However, it is important to remember that the cost of reconstruction is not the same as the market value of your property. The cost of reconstruction does not include the value of the land, but rather all expenses related to legal fees, materials, and labor required to rebuild the home.

Area of residence

Where you live also has an impact on multi-risk home insurance premium. This is not a distinction based on regions of the country—specifically, the coast or the interior—but rather a distinction based on the likelihood of claims.

For example, if you live in an area at risk of earthquakes, it is recommended that you include this coverage in your home insurance policy. Therefore, the cost of your policy will differ from that of someone who lives in an area without this risk.

The same applies if you live in an area with a high risk of flooding; your property insurance premium will be higher. Likewise, if you live in an area with an above-average burglary rate, the cost of insuring your household contents will be higher.

Investment in security

Conversely, if you find that the safety of the area where you live is a factor driving up the cost of your home insurance, you can add security measures to your home. Installing an alarm system (connected to the police or a security company) or 24/7 surveillance cameras, upgrading your locks, and even adding fire extinguishers are all measures that can help lower your premium.

If you add these enhancements after you have already purchased the insurance, you must update your plan and the insured amount.

Intended Use of the Property

When calculating comprehensive home insurance, the purpose of the home is also taken into account. In other words, whether the property is a primary and permanent residence or a second home.

If the property is for rent, the premium will be higher, since tenants are considered less likely to take good care of the property.

How do I get a quote for comprehensive home insurance with EXS?

Now that you understand how to calculate the cost of comprehensive home insurance, it’s important to know how to find the best comprehensive home insurance policy—that is, the plan that best meets the needs of your family and your home, and fits within your budget.

To help you find the best solution, it's best to request several quotes from different insurance companies. If you use the EXS simulator, When you fill out the online form, you can compare plans from the 26 leading insurance companies in Portugal and access the best offers.

To do this, you just need to Enter your information. Next, our consultants will contact you to request more information, and by cross-referencing data from the most competitive insurance companies in Portugal (Advancecare, Ageas, AIG, Allianz, APRIL, ARAG, Asisa, Caravela, ERV, Fidelidade, Generali, Liberty Seguros, Lusitania Seguros, MAPFRE, Médis, Metlife, MGEN, Multicare, Popular Seguros, PRÉVOIR, Real Vida Seguros, Saúde Prime, Tranquilidade, Una Seguros, Victoria, and Zurich), we’ll prepare a proposal tailored to your needs—with no obligation and at no cost.

In addition to a personalized quote, you can also count on our free consultation service to answer any questions you may have before making your decision. Even after you sign up and throughout the term of your insurance policy, you’ll have access to personalized advice from our consultants.

So, if you're looking for the best deals to protect your family, Contact us! EXS provides the support you need to find the solution that best suits you.