How To Determine The Price Coverage Fire Insurance On Building
The purpose of this discussion is about how to determine the price of cover (sum assured) on the basis of price / value of the real value (real) to reduce the occurrence of two (2) things: lowest first insured and uninsured. How can I get complete coverage alias fully insured price!.Follow my next article.
One difficulty in determining the actual price (value) are the parameters that are called â € ~ depresiasiâ € ™ writing Psaki remember that we are not aware of the value of depreciation of buildings covered by the compensation procedure. Article 10 and 11 only mentions Psaki text, but without mention of impairment of the value per year.
A common practice: market prices to the sum insured
The practice is simple. In general, the pricing of insurance is based on the pricing of the sale or purchase price (market price) of the home in the local market. For example, 5 (five) years who bought a home developer writes a 27/66 in the town of Bogor 60 million rupees. Then, in 2009, this year the building you want insured. Of course, they take into account the amount of the purchase price of the house now, they say that the figures obtained $ 70 million (the ratio of higher prices for housing). Now the question is whether you can use this number?. Of course you can!. From the perspective of insurance there is no problem because the condition is only one (1) is just not the case under the Insured. For the insurer under the insured is not enough premium (premium inadequate) and the insured in the accident, the claim is not paid in full.Conversely, if there is over-insured, the fun and the insurance company the insured need not worry about managing the change does not hurt, although the real terms of the insured, no payment of premium above the insurer.
Here’s how to calculate the ABI BUILDING?
If you know the price of insurance in accordance with the actual value (because we want the objective of avoiding excessive or insured), then calculate in advance what the cost of reconstruction (replacement cost ) when entering into insurance. Then the results were reduced by the depreciation of buildings according to their age. Because Psaki adopt compensation systems based on the actual cash value (ACV), where there is a component of depreciation as a deduction from the value of claims for total loss or partial loss. But, unfortunately, is not regulated, the number of depreciation can be a hardware issue for all parties.
Ask several contractors or consultants or evaluation firm to inquire about the cost of reinstatement. Say that the information obtained at that time cost of $ 1.5 juta/m2 total construction cost is 1.5 billion rupees x its construction zone. For example, if measuring 27 m2 in total, then the figures achieved USD 40.5 million. Why are worth less than the value at the time of purchase of 5 (five) years?. This is because when you buy a house is covered by the price of land. Figures USD 40.5 million on top and then escape again with age appropriate depreciation value of the building. Telling the depreciation rate Psaki wordingnya explicitly, for example, 2% per year, so if the method of depreciation is used to obtain real prices as follows:
Year Amortization 5 = 100% – (100% – 2%) ^ 5 = 100% – (98%) ^ 5 = 100% – 90.39% = 9.61%.
Food Cost = USD 40.5 million
Fact-value = USD 40.5 million â € “(USD 40.5 million x 9.61%)
€ 40,500,000.00 USD = $ a “= USD 3,892,050.00 USD $ 36,607,950.00.
Well, the numbers of USD 36,607,950.00 is used as the price of coverage (sum assured) in its policy of fire insurance.
CLOSURE
The calculation of the above objectives to get the same coverage that price or close to the actual value of the trail is more complicated than calculating the market price. Insurance Marketing dealing directly with customers must be submitted before construction techniques of the assessment is equipped with an array of figures based on depreciation. Do-not only for the value of calculating the availability of real buildings and converted the amortization tables, the insured is not really good because the insurance company Ribet. It is simply that knowledge of materials (knowledge) is that of determining the appropriate price for the insurance policy fire insurance based on the actual cash value (ACV).
