Monsoon-Proof Your Home: Buy Home Insurance

Global warming and climate change has led to some cascading natural disasters in the country in the past few years.

In 2023, the floods in North India killed at least 105, leaving many without homes and belongings. Areas such as Punjab, Rajasthan and Delhi received continuous rainfall which led to water logging in many parts of the states. Torrential rains in Himachal Pradesh and Uttarakhand swept away homes of hundreds.

Last year, states such as Tamil Nadu and Sikkim faced heavy rainfalls which were followed by flash floods. This year too, several states such as Telangana and Andhra Pradesh have experienced severe flooding due to which a lot of houses were destroyed.

Losing your home to a natural calamity can leave one feeling helpless. It upends one’s sense of security, uproots the family, disrupts life and can have a negative financial, psychological and emotional effect. Investing in a good home insurance can be a saviour during such testing times.

Understanding home insurance

Home insurance protects your home and its content from natural or man-made calamites and disasters such as earthquakes, floods, bush fires, accidental fires, theft or any other damage. Home insurance also provide coverage for damage to valuables such as art, jewellery, expensive decorative items.

Additionally, home insurance also provides liability coverage, which protects the homeowner in case anyone gets injured on the insured property.

Why insure your home against flood

In the recent years, many Indian states have faced catastrophic floods that cause tremendous damage to property and lives. Floods are caused by heavy rainfall, dam failures, melting of snow, amongst other reasons. In the past decade, over 12 Indian states have got severely affected due to floods, while many others faced unexpected heavy rainfall with flood warnings.

Floods cause widespread damage. Insuring your home against them ensures you are compensated for your home and your belongings in case of any damage caused by floods. Since floods are categorized as catastrophic natural events, the compensation claims are high. Mostly standard home insurances don’t cover floods. Many a times you may have to add flood insurance as a separate policy or an add-on to your existing home insurance.

According to the Geological Survey of India (GSI), nearly 12.5% of India lies in flood-prone zones. West Bengal, Odisha, Assam, Bihar, Andhra Pradesh, Kerala, Gujarat, Uttar Pradesh, Haryana, Maharashtra, and Punjab are among the states that experience the brunt of torrential rains and flash floods on a regular basis.

Home insurance for tenants

A big myth about home insurance is that it is only essential for homeowners. However, as a tenant you are still vulnerable to damage or loss of your belongings due to reasons such as theft, fire, floods etc.

A provision of home insurance allows tenants to secure their belongings and also secures them against liabilities that may arise while living in a rented property. Tenants can claim insurance on personal belongings such as electronics, art, expensive jewellery, clothing or other valuables. It also secures the tenant against their property accidently causing damage to another one’s property. Example- if a fire that started in your house spreads to a neighbouring property.

Having home insurance as a tenant is a smart investment. You can check the terms and conditions on your home insurance app to make alterations to the standard tenant’s insurance to add policies that you feel may benefit you.

How to choose the right home insurance

Consider the value of your belongings- Make a list of your belongings with a price estimate
Consider the location- If you live in an area prone to natural calamities such as earthquakes and floods, make sure they are added in your home insurance plan
Understand the exclusions- Understand the exclusions on your home insurance and consider them as separate add-ons if you think it would benefit you
Ask for discounts or extra features- You can check home insurance apps to see if there are any offers or bundle features available
Do your research- Don’t get tempted by attractive offers. Do your research on the insurance company for their reputation, turnaround time, customer service and financial stability. Get quotes from different companies before taking a decision.

In conclusion

We can still be well prepared for things such as theft and burglary by investing in cameras and security alarms. However, natural calamities cause excessive damage and can’t always be contained with precautions. Investing in a good home insurance plan can save you the financial trouble and emotional trauma of rebuilding your home in case of such unfortunate events.

In recent years due to climate change many parts of the country have experienced bone chilling floods. A suitable home insurance can give you the peace of mind you need.