Homeowners Insurance

This tool does NOT provide an indication of which policy is a better investment.  It is intended to help the client select the policy that best meets his/her needs. See the help topic Protection Component Assumptions for more details.

Enter the current insurance alternative on the left.  Then enter a "better alternative" on the right.  The expectation is that the better alternative should have a lower annual premium.  Click Calculate to compare the two scenarios both in today’s dollars and at opportunity (future value of premiums).

No script is provided for this screen.

Premium as a % of House Value

This calculator shows the annual premium as a percent of the House Value.  The formula is:

Premium as a % of House Value = (Annual premium / House Value) * 100

The result is displayed in percent.

Difference in Premiums at Interest (Future Value of Difference in Premiums)

The Cumulative Premiums and the Difference in Premiums at Interest are calculated in a spreadsheet.  The results are in the bottom row of the columns labeled:

1.Cumulative Current Scenario Premiums

2.Cumulative Alternative Scenario Premiums

3.Difference in Premiums at End of Year.  

The last item is the future value of the monthly difference in premiums compounded monthly at the opportunity rate of return.