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How Home Insurance Works

In House Magazine
27 Aug 2019
How Home Insurance Works

Home is a most valuable asset. To get it we have to work hard and save a lot of time.

Like a very valuable product, homes also need insurance protection to avoid something bad that could happen to the house.

Before deciding to buy a product, of course you always want to know about the pattern or how the product works. thus, you will not be disappointed or even feel disadvantaged as a result of the purchase made.

This will also apply to home insurance, of course you want to know clearly the benefits and working methods that are applied by the insurance company in the product you are going to buy.

Example: You have a house with a building area of 100 square meters, with a house insured value of IDR 400,000,000.00. The sum insured will be obtained by calculating 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 one square meter, then a 100-square-meter house will need Rp. 400,000,000.00.

However, apart from the physical building of the house, you can also insure the assets in the house. For example, the value of your assets is IDR 100,000,000.00, then your total coverage is IDR 500,000,000.00. After getting the sum insured, you can multiply this value by the permil unit, so that you finally find the annual premium value that you must pay, which is IDR 750,000.00.

This amount is certainly very far when compared to the sum insured that you will get, right?

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