Home insurance can make life less painful amid calamities

By: |
December 15, 2015 12:03 AM

If you own a flat in a multi-storied apartment, it would be good to check whether your housing society has insured your building against natural calamities

The massive flooding in Chennai has led us to think how we can protect ourselves against such natural calamaties. While little can be done to replace the emotional loss, but financially, help is at hand if you are insured. Let’s look at how home insurance can make your life a little less painful in the spate of such calamities.

Go for a comprehensive policy

Typically, home insurance plan is divided in two parts – while one covers physical structure of your home, the other takes care of your household goods (or contents). You could opt for either or both of them, depending on your requirement.

A comprehensive home insurance plan would insure your home against natural and man-made calamities, mechanical and electrical breakdown. You could also look at including jewellery cover and third-party liability cover for extra cushion.

Insurers define flood as overflowing of water body post accumulating large amount of rainwater and hence, your home insurance plan may not cover damages caused due to heavy rain, water seepage or a broken roof.

Protect your home with premium as low as Rs 250 per month. Defying popular belief, home insurance plan is quite affordable and keeps you insured against potential structural and content damages. You could insure the structure and content of your house for Rs 30 lakh, at as low a premium as  Rs 250 per month.

Filing a claim

Under the usual scenario, you will be required to submit multiple documents at the time of filing a claim. This process can be challenging in case of natural calamities such as flood or earthquake. Now, you need not worry if your policy documents get washed away or destroyed due to the flood.

Insurers today are quite sensitive and have, in fact, come up with ways to simplify claim process for your benefit.

They consider other documentary evidence of existence or ownership such as physical inspection at the scene of calamity to assess your loss, in case you cannot access policy documents for valid reasons. If the damage to the house is classified by your insurer as ‘partial loss’, you would receive a refund for repairing it. Your claims settlement process won’t be affected even if your insurer’s office is damaged due to the calamity.

What you need to know

If you own a flat in a multi-storied apartment, it would be good to check whether your housing society has insured your building against natural calamities. If insured, you can then opt for the ‘content’ variant to secure household goods such as furniture and electrical equipment.

Similarly, consider buying content cover if you are a tenant as your housing society will not take responsibility for insuring your personal assets.

If you own an independent house, go for the ‘structure + content’ variant in home insurance. In addition, you can opt for add-ons like jewellery, burglary, and third-party liability.

In this age where you possibly buy various types of insurance to provision for future needs, do not miss out on home insurance.

While you cannot stop calamities from damaging your home, you can be prepared to work your way around it without causing a dent on your savings.

The writer is CEO & co-founder, Policybazaar.com

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