India’s diverse climatic conditions expose various regions to a range of natural disasters, making it crucial for homeowners to safeguard their properties. While we can’t control our mother nature’s unpredictability, we can protect ourselves from its devastating impacts. Home insurance acts as a financial safety net, covering the cost of damage to property and possessions caused by natural disasters like floods, storms, and earthquakes.
Home insurance typically covers damage to the structure, personal belongings, and sometimes, additional living expenses if the home becomes uninhabitable. However, not all natural disasters are automatically included in standard policies. Understanding the specifics of your home insurance is essential, as some areas prone to earthquakes or floods may require separate coverage for full protection. India’s property insurance market trends reflect the increasing importance of home insurance.
Types of Natural Disasters Covered Under The Home Insurance Umbrella
Most standard homeowners’ insurance policies usually include a range of natural disasters, but the exact coverage might differ with states and specific policies. Outlined below are a few examples of common environmental calamities generally covered by home insurance plans:
Floods:
Floods can cause extensive damage to a building’s structure and its belongings. However, the majority of standard home insurance policies do not cover flood damages. Consequently, homeowners who reside in flood-prone states (like Sikkim, Odisha, Bihar, Andhra Pradesh, Tamil Nadu, etc.) may have to buy government programs or private insurer’s flood insurance plans for them to remain safe from water-related calamities.
Earthquakes:
Standard home insurance policies exclude earthquake destruction. Homeowners living in seismically active regions, including Jammu & Kashmir, Sikkim, Assam, and Uttaranchal, among others, are advised to consider adding earthquake coverage to their insurance portfolio. This will help them cope with structural damage to their homes, notwithstanding seismic activities.
Storms and Hurricanes:
Significant roof, window and other structural damage can occur due to high wind speeds, heavy rainfalls and debris blown by storms. Most conventional home insurance policies cover damages caused by winds associated with storms and hurricanes. However, certain policies may provide a separate deductible for damages related to hurricanes, which is probably higher than the standard one.
Wildfires:
Wildfires can spread quickly, resulting in houses burned to ashes. In areas where wildfires are common, home insurance always covers the damages related to fire and smoke. With a home insurance policy with fire coverage, homeowners can rebuild and also recover financially from such events.
Snowstorms and Hail:
In severe cold areas, snowstorms and hail can damage roofs and windows and even lead to floods when snow melts. Standard home insurance plans cover these weather-related disasters and allow the insurance providers to pay the required funds for repairs.
Landslides and Mudslides:
In regions that face potential landslide or mudslide risks, homeowners might require extra protection since these calamities are not always included in a standard policy.
Filing a Claim After a Natural Disaster:
When your residence is adversely affected by the forces of nature, filing a claim to the insurance service provider is the next action. The process may seem overwhelming, especially after an occurrence of calamity, but following the correct procedure guarantees swift processing of the claim.
Documenting The Damage:
Taking pictures or videos of the affected areas helps verify the damage when you submit the claim. After documenting everything, notify your insurance company as soon as possible to get the claim process started. An early claim submission will make it feasible for an insurance adjuster to evaluate the damage.
Assessment By Insurance Adjuster:
The insurance company will then review the claim, often sending an adjuster to assess the extent of th damage. After completion of the inspection by an adjuster, the compensation amount will be evaluated basis the coverage stated in your policy. If the claim gets approved, then you will receive the required funds to cover the repairs or replacement costs.
Keep Detailed Records:
Transparent communication with your insurance company must be observed throughout the claims process. Additionally, it is vital to maintain records of each conversation, such as the date, the representative’s name, and a brief summary of what has been discussed.
Staying Informed About Deductibles:
Notably, some policies have different deductibles in case of claims related to natural calamities. Therefore you must brace yourself for this financial responsibility before taking insurance that covers the rest.
Selecting an appropriate coverage is crucial for securing home safety against natural calamities. In India, leading InsurTech platforms have revolutionised the insurance experience by developing specialised value-based plans that align with every homeowner’s requirement. These platforms enable users to effortlessly make policy comparisons and subsequently choose those that are cost-effective and provide peace of mind after unforeseen circumstances occur.
