Thankfully, you don't have to be an actuary to understand the determinants of home insurance premium. Stay with us as we acquaint you with a few deciding factors for your home insurance premium.
Amount of Coverage
The first factor that has a direct bearing on the premium, like any other insurance plan, is the amount of coverage. The different types of home insurance plans are namely - Structure and Contents. Opting for only one involves paying a lower premium. If you opt for extra coverage such as terrorism cover, you need to pay a higher premium.
Similarly, there are policies that reimburse rent paid for alternative accommodation in the event of your home being destroyed or damaged. An extra premium is charged for such covers.
Natural Calamities Risk
The geographical area where you reside plays an integral part in influencing the price that you pay for insuring your home. Home insurance financially protects you against natural calamities like cyclone, hurricane, earthquakes, etc. The premium hence is likely to increase if your home is located in an earthquake zone or a coastal area prone to cyclones.
Value of Home and Contents
Higher the cost of re-construction, higher is the premium. The cost of re-construction is dependent upon the built-up area and the rate of construction per unit (generally square feet). Similarly, more the insured content more the insurance premium to be paid.
Other Miscellaneous Factors
Locations prone to burglaries or thefts tend to have a higher risk, hence have a higher premium.
Choosing a long-term home insurance policy could be beneficial as these generally have a lower cost.
Similarly, a good claims history also plays a part in lowering your insurance premiums.
Though these are the general determinants of home insurance premium, different insurance providers use their own specific criteria for calculating premium.
How to Get Home Insurance?
You can easily opt for policies online by visiting the website of an insurance company. Alternatively, it can also be bought from your insurance broker. 
Do You Need to Buy Home Insurance?
A frequent question asked by many is, 'Why should I buy?' Our homes are vulnerable to many risks; pick up a newspaper on any given day to come across news of disasters or calamities. Investing in a home insurance policy hence is strongly advised by financial experts, more so as these are available at nominal rates in India.
A calamity wouldn't knock on your door before striking! Better to be safe than sorry when it comes to your most prized asset, isn't it?