How Does a Natural Disaster Affect You?
Loss of property and financial stress are the two significant consequences homeowners usually face due to an attack by a natural disaster—however, awareness, preparedness, and prediction lower the disruptive impacts of natural disasters on human lives.
The article compiles the significance of a home insurance policy in case an unfortunate earthquake, cyclone, or flood strikes.
How Does a Home Insurance Policy Protect Your Property During a Natural Calamity?
Here are some common inclusions of home insurance against natural disasters India that you can avail of:
Damages or loss of property arising out of natural calamities
A natural calamity can damage your home structure and its content. If you live in a high-damage seismic zone, it means you are prone to earthquakes. However, if your house is in a coastal area, you are more likely to face a cyclone or flood. Therefore, having the right property insurance policy will give you a sense of safety because the insurer pays for property damages and repairs.
Damages arising due to the breakdown of an electrical system
Electrical systems and appliances play a vital role in making our lives easy. Our house has electrical appliances such as fans, coolers, air conditioners, heaters, geysers, mixer grinders, induction cookers, vacuum cleaners, washing machines, etc.
If they fail to work or break down during a natural disaster, you probably have to shell out a considerable amount of money to buy another appliance. However, if you have home insurance, you will get coverage against such loss caused by faulty appliances during a natural calamity.
Damages arising out of fire outbreak
Do you know the average temperature at which a house burns fire is 600° Celsius? A fire outbreak in a natural calamity can cause concrete surface cracking, chemical decomposition, and spalling. Electric fires, gas leakage, etc., are some of the primary causes of house fires during a disaster. However, if you have a house insurance policy, it will cover the cost of repairs due to fire damages.
5 Tips to Keep Yourself Safe During a Natural Calamity
- Ensure you have followed the highest possible EQ-resistant standards while building your home.
- Evacuate yourself to a higher ground level.
- Ensure your home has an adequate drainage system.
- Ensure you have activated your alerts and follow the instructions given by the local authorities and government.
- Get the right home insurance policy to cover your home, all its valuable content, and several perils during a natural disaster. However, make sure you evaluate your house's home content and current market value to get the right compensation amount.
You can also use the free online home insurance calculator offered by Policybazaar.com. Here, you can find an estimated premium amount payable to insure your house.
Things to Keep in Mind Before Buying Home Insurance
Before buying home insurance, you must consider whether it can secure your home. Otherwise, you might be at a loss in case of a natural calamity, man-made disaster, or theft damage. Here are some essential points to get started:
- Sufficient Sum Insured: Since the sum insured is the amount that an insurer pays at the time of claim, it must reflect the correct property value. Most people choose the sum insured equal to the house's market value. However, the insurer settles claims on a reinstatement basis, fluctuating with construction costs. Therefore, at the time of policy renewal, one should choose the correct sum insured limit per the prevalent construction cost.
- Comprehensive Coverage: Most people have house insurance together with their home loan. However, ensuring they have a comprehensive home insurance plan is essential. Most of the policies cover structure only and not the articles inside. But what would happen if there was a theft or an electrical breakdown? A comprehensive insurance policy is required to cover both structure and household items.
- Tenure of the Policy: You can opt for an annual or multi-year insurance policy. While the yearly insurance policy allows you to revisit the sum insured's value every year, a long-term policy offers discounts in the form of low premium rates.
In a Nutshell
Keep yourself and your home safe during any natural calamities. Moreover, check the standard home insurance inclusions before buying it to know what the insurer offers you. You can also check for add-on covers that will enhance your policy coverage.
Written By: PolicyBazaar - Updated: 10 January 2024