When the terms “flood,” “earthquake,” or “tsunami” are mentioned, people immediately conjure up vivid images of destruction, misery, and disaster, serving as a constant reminder that we are powerless against Mother Nature. Natural catastrophes have always posed a threat to lives due to their unpredictable nature, size, and resulting devastation.
Why should your home be protected from natural disasters?
You run the risk of accruing lakhs in combined property damage during floods, earthquakes, storms, and lightning strikes if your home does not have natural disaster coverage. People without home insurance have ended up losing everything they own as a result of such tragedies, leaving them with the difficult chore of starting over. Therefore, it is wise to have home insurance that safeguards them against natural catastrophe losses, as the insurance provider will pay for the losses and damages experienced during such disasters.
Plans for natural calamities and information on coverage
It is crucial to pick a plan that offers a defence against potential natural disasters in your area. Since some insurance companies do not automatically provide coverage against earthquakes, if you live in an earthquake-prone area, you must make sure that earthquake protection is specifically specified in the policy coverage.
Standard fire & special perils policy: This policy addresses risks related to fire, flood, earthquake, lightning, explosion, flooding, storm, riot, and strike. For a small additional fee, terrorism can be covered. Damage to your home’s structure and contents is covered by this policy.
This policy will protect your priceless homes from natural disasters. Theft, burglary, or larceny-related losses or damages are not, however, covered. Under a comprehensive house insurance package, that may be covered.
Comprehensive home insurance plan: This home insurance includes coverage for fire, riots, strikes, and other hazards in addition to those posed by natural disasters, including floods, earthquakes, lightning, inundation, and storms. Additionally, it offers a complete remedy for all hazards related to theft, larceny, and break-ins. Damages to your home’s structure and contents are also covered by this policy. *
Please be aware that losses brought on by wilful carelessness or misconduct, pollution, contaminating agents, normal wear and tear, and nuclear risks will not be compensated under fire and burglary insurance.
Basic protection from both natural and man-made calamities doesn’t cost the earth. For less than Rs 1,700 a year, a 1,500-square-foot house can be insured for Rs 50 lakh against fire and other perils. You can calculate the same with the use of a home insurance calculator.
Keep in mind that you only need to take out insurance for the cost of rebuilding the property, not for its market value. Construction expenses range from Rs 1,000 per square foot for a basic building to approximately Rs 3,000 per square foot for a luxury building.
Knowing what an insurance policy for the home will cover is crucial. All home insurance policies include coverage for earthquakes. However, some insurers require a 5% deductible in the event of damage brought on by an “act of God.” Any occurrence, especially a natural tragedy, for which no person is accountable constitutes an act of God. *
This deductible may be modified in various policies. Raising the deductible lowers the risk for the insurance provider and substantially lowers the rate.
What is left out
Some valuables are not insured, even though you can insure the contents of the house against loss and theft. Debit or credit cards, cash, papers, stock certificates, and other items are not covered by the insurance. There are ceilings on the cover for jewellery and other valuables.
Determine the cost of replacing an item before purchasing coverage for appliances and gadgets. The amount needed to return a damaged item to its original state will be covered by the insurance carrier.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.