Over the years, India has become prone to constant attacks from nature. All witnessed how the year 2024 brought a series of devastating natural disasters. Around 51 cloudburst and flash flood incidents were reported in Himachal Pradesh between June and August. Similarly, the Vijayawada floods affected over 270,000 lives between August and September. Numerous such events have been reported all across the country.
While controlling or averting these disasters may not be possible, getting coverage against damages caused by natural disasters is possible! You must have heard and secured health insurance or motor vehicle insurance. Let’s delve into the details of home insurance that can offer coverage for damages caused to your home/ property due to natural disasters.
Why Does Your House Need Coverage?
Natural disasters are usually considered to be a rare occurrence. The devastating impacts it has on the lives and houses of affected people are often dismissed till it doesn’t affect one personally. However, know that natural disasters, though rare, can impact your house in ways that are unimaginable and even unrecoverable.
Not opting for insurance policy to secure your home puts you at the risk of spending lakhs to overcome the devastating impacts of natural disasters. Therefore, it is always a wise and smart choice to opt for home insurance coverage and avoid facing a financial crisis when you are already impacted emotionally.
Choosing home insurance coverage has become easier than ever, with a wide array of coverages available, such as building/structure insurance, personal accident insurance, public liability coverage, etc.
Types of Natural Disaster Coverages to Explore
Now that you are on board with the idea of natural disaster insurance coverage, it is time to explore the different types of coverage you can choose. Remember that choosing coverage depends on how prone your locality is to face a natural disaster and your financial planning.
Take a look at these insurance coverages:
-
Building or Structure Coverage
This type of coverage takes care of the financial loss you might face when there is damage in the structure of your house which includes damages to the foundation, wall etc. In case a natural or man-made calamity, as specified by your insurer, damages the structure of your building, you get financial coverage.
-
Home Contents Coverage
As the name suggests, this type of coverage is available for damages caused to your home’s contents, such as furniture, electronics, etc. Depending on the type of plan you choose, the list and value of home contents can be adjusted. Most home insurance plans also offer coverage for your precious metals, jewellery and artwork.
-
Coverage for Structure and Contents
If you want coverage for both structure and contents in your home, you can opt for mixed coverage. Since its scope is wider, mixed coverage is always advised.
Home Insurance Coverage: What’s in it For You?
Creating a safety net for yourself is not enough. When you spend lakhs on building the home of your dreams, it needs to be protected as well. Choosing natural disaster insurance from reputed insurance providers offers you multiple benefits like:1
-
Comprehensive Coverage
A home insurance plan is designed for comprehensive coverage that extends to both home structure and contents so you can easily recover the losses faced. Additionally, a home insurance plan extends beyond damages caused by natural disasters to include man-made calamities like fire, theft, riot, robbery etc.
-
Replacement Cost Coverage
Imagine spending months and lakhs to build an aesthetic space for you and your loved ones, only to lose it all due to a natural disaster or man-made calamity. However, when you have home insurance, the insurer will pay for the expenses incurred on replacing your personal belongings.
-
Affordable Premiums
One of the best parts of opting for home insurance is that it comes at affordable premiums to ensure that you are not financially burdened.
-
Quick Claim Settlement
The last thing you want after facing home damage is to run around, asking for what is rightfully yours. With reliable insurance companies, you get a quick claim settlement that allows you to start rebuilding your home immediately.
Inclusions and Exclusions under Home Insurance: How Far Are You Covered?
Know that just like any other insurance plan, a home insurance plan also comes with certain inclusions and exclusions that you must be aware of before choosing a plan.
Here’s a list of common inclusions and exclusions under a home insurance plan:
Inclusions
- Fire
- Earthquakes
- Lightening
- Aircraft Damage
- Explosion
- Water tank burst or overflowing tank/pipes
- Storms, hurricanes, typhoons, cyclones, floods, tornados, etc.
- Missile test operations
- Leakage from sprinklers
- Landslide or Rockslides
- Bush Fire
Exclusions
- Wear and Tear
- Business Activities
- War and Acts of Terrorism
- Intentional Damage
- Nuclear Accidents
- Mould and Mildew
- Sewer Backup
- Sinkhole issues etc.
Exploring the Tenure of Your Home Insurance
Before you opt for home insurance, you must evaluate the tenure. Know that these plans are available for both short-term and long-term. To give you an idea, here’s how Secure Now promises effective tenures:1
| Coverage | Policy Tenure |
| Building Structure | 1 to 30 Years |
| Home Contents | 1 to 5 Years |
| Mixed Coverage | 1 to 10 Years |
Over to You
You can indeed do little or perhaps nothing to avert a natural disaster or man-made calamity. However, dealing with the damages of a natural disaster is within your control. Opting for home insurance is exactly what you need to rebuild your home smoothly or replace your personal belongings. Additionally, when you have home insurance, you can stay worry-free of any such unforeseen circumstances.
When choosing a home insurance policy, picking the one with the lowest or the highest coverage may not always be the best choice. You should carefully pick a plan that suits your needs to avoid getting trapped in unreasonable premiums but get the coverage you are looking for.
FAQs
What is Home Insurance?
Home insurance is a type of property insurance that provides financial coverage against damages caused either by natural disasters like floods, earthquakes etc or man-made damages like theft, fire etc.
What are the types of home insurance?
There are different types of home insurance plans depending on the coverage they provide, like building structure coverage, home contents coverage or combined coverage.
