The value of your house is assessed as per its ‘reinstatement value’ i.e. what it would cost to rebuild (reinstate) your house. This is calculated as the area of your house multiplied by the rate of construction per square feet, as on the date of purchasing the policy. E.g. if you have a 1,000 sq. ft. house, and the present construction rate per sq. ft. is Rs. 900/-, your house is valued at Rs. 9,00,000. Different insurance companies have different limits for construction rates in a given city and insurance cover would be provided up to a maximum of such limits.