The recent heavy rains across north India have resulted in significant damage, with devastating consequences for many homeowners. The trail of destruction left behind serves as a stark reminder of the importance of having home insurance in such situations.
Countless homes have been flooded, properties destroyed, and lives disrupted over the past three days. The gravity of the situation is highlighted by the fact that Delhi experienced the highest single-day rainfall in July since 1982, with 153 mm recorded in just 24 hours on Sunday, according to the India Meteorological Department.
In times like these, home insurance plays a vital role in providing financial protection and peace of mind to homeowners. But a significant question looms around that if a home insurance policy covers the damages caused due to heavy rains and floods.
We sought the opinions of several experts regarding the coverage of flood damages under home insurance policies. Here’s what they think-
Nitin Deo, Chief Technical Officer, Zuno General Insurance
Most of the insurance plans in India offer protection against property damage brought on by floodwater entering a home. Homeowners affected by floods can avoid the weight of paying for the replacement of all their belongings. Opting for a home insurance policy in the case of floods brings several advantages.
With no deductibles, which are determined at the time the policy is obtained, homeowners can find financial relief and ensure their property is protected against various flooding events, including unprecedented rainfall and overflowing water bodies.
Additionally, it's crucial to save all claim-related documents, such as receipts and bills, and maintain a list of temporarily repaired items. By following these steps, homeowners can streamline the claims process and ensure a smooth resolution.
Ravichandran N, Chief Technical Officer, Kotak Mahindra General Insurance
Home insurance is becoming a necessary purchase these days, especially in light of the recent natural disasters that the country has witnessed in the past couple of years.
Home insurance covers damages to the home structure and its contents against natural catastrophes such as floods, inundation, landslides, rockslides, earthquakes in addition to storms, cyclones, tempests, etc. in addition to fire and burglary. Despite these benefits, awareness about home insurance has been low historically but is steadily picking up with the segment witnessing steady growth.
Aftab Chaz, Associate Director and Business Head at Elephant.in, Alliance Insurance Brokers
Home insurance provides a valuable safeguard against the devastating effects of floods in India. With the monsoon season posing a significant risk to homeowners, having adequate insurance coverage can bring peace of mind and financial security.
Home insurance policies typically cover damages caused by floods, including structural damage, loss or damage to personal belongings, and more. This coverage ensures that homeowners can recover their losses and rebuild their lives without facing a heavy financial burden.
In a country like India, where flooding is a common occurrence in many regions, having home insurance is an essential investment. It not only protects the homeowner's property and belongings but also offers a safety net during times of crisis.
By providing comprehensive coverage against flood damages, Home Insurance empowers homeowners to confidently face the monsoon season, knowing that they are protected and supported.
Mr. Pankaj Goenka,Business Head, InsuranceDekho
Yes, home insurance in India can cover damages due to rain and floods, but only if you have a flood insurance policy. A standard home insurance policy does not cover flood damage, but you can purchase a separate flood insurance policy to protect your home from this type of damage.
Flood insurance is typically offered by the National Flood Insurance Program (NFIP) in India.
The cost of flood insurance will vary depending on the location of your home and the level of coverage you choose. If you live in an area that is prone to flooding, it is important to have flood insurance. This will help protect homes and belongings in the event of a flood.
A flood insurance policy covers various aspects of damage caused by a flood. This includes structural damage to the home, such as the foundation, walls, and roof, as well as damage to the contents of the home, including furniture, appliances, and personal belongings. Additionally, if a flood forces you to evacuate your home, the policy may also provide coverage for temporary living expenses.
However, it is essential to understand that flood insurance does not cover all types of flood-related damage. Some examples of damages not covered include sewage backup, water damage from a burst pipe, and water damage resulting from a sump pump failure.
It is crucial to carefully review the details of your insurance policy as some policies may offer comprehensive coverage for damages caused by rains or floods, while others may not. Understanding the fine print and terms of the policy is essential in making an informed decision.