Ans: “Market Value” means Replacement Value less depreciation. “Reinstatement Value” means the cost of replacing or reinstating on the same site, property of the same kind or type but not superior to or more extensive than the insured property when new.Asked By: | In: Home Insurance
Ans: Cost of construction includes material and labour cost/sq. ft. In a place like Delhi cost of construction varies from Rs800/sq ft. to Rs1200/sq ft. depending on the quality of construction. Home Insurance in India is also quite cheap and hence you won’t have too much trouble while buying it.Asked By: | In: Home Insurance
Ans: Sum Insured for your house excludes the cost of land. Sum Insured is calculated as follows- Covered Area (Sq. ft) * Cost of construction (per sq. ft) = SI for your Building E.g. (400sq ft) * (Rs 700/sq ft) = Rs 280000/-(SI of Building).