What is Earthquake Insurance
Earthquake insurance for the home is a specialised insurance coverage that protects your house and belongings against damage caused by earthquakes, and these risks are usually excluded from a standard home insurance policy. Since over 60% of India falls under seismic risk zones, this coverage helps pay for the repair, rebuilding, and replacement of contents after any seismic damage. It can be purchased as an home insurance add-on or as a standalone earthquake insurance policy, providing financial protection against sudden, severe losses.
Earthquake Zones in India (Seismic Risk Classification)
India is officially divided into four seismic zones based on earthquake frequency and intensity:
It includes parts of Jammu & Kashmir, Himachal Pradesh, Uttarakhand, the North-Eastern states, the Rann of Kutch, and the Andaman & Nicobar Islands.
It covers Delhi, Sikkim, parts of Bihar, Uttar Pradesh, West Bengal, Gujarat, and Maharashtra.
It includes Kerala, Goa, Lakshadweep, parts of Punjab, Rajasthan, Madhya Pradesh, Chhattisgarh, Odisha, Andhra Pradesh, Tamil Nadu, and Karnataka.
It covers the remaining parts of the country.
Earthquake Insurance Premium Rate in India
The earthquake insurance premium rate in India depends on multiple factors:
Coverage of an Earthquake Insurance Policy
Dwelling Structure
It covers damage to the home’s foundation, walls, roof, beams, and columns, including attached areas like balconies and garages.
Household Contents
It protects furniture, appliances, electronics, fixtures, and personal belongings kept inside the house.
Secondary Losses
It also covers fire, explosion, or damage from burst pipes and gas lines triggered by the earthquake.
Floods or Tsunamis After an Earthquake
Damage from a flood or tsunami after an earthquake is not covered unless flood coverage is added.
Loss of Rent or Income
Loss of rent or income is excluded unless selected as an add-on cover.
Temporary Living Expenses
Costs for alternate accommodation after damage are not covered by default.
Debris Removal Beyond Limits
Debris removal is covered only up to the specified policy limits.
Professional Fees Beyond Limits
Architect or engineer fees are covered only within specified limits.
Wear, Tear, or Structural Weakness
Pre-existing damage, poor construction, and wear and tear are not covered.
Damage Outside Policy Period
Any damage occurring outside the policy period is excluded.
Policy Deductibles
The policyholder must pay the deductible amount specified in the policy.
How to Buy Earthquake Insurance in India?
You can get earthquake coverage in two ways:
Add it as an add-on cover to your existing home insurance policy.
Tenants may not own the property, but they own belongings in the policy, such as furniture, electronics, and personal belongings. A contents insurance policy protects these valuables from fire, theft, or natural disasters.
Purchase a separate earthquake insurance policy.
Earthquake Insurance Deductibles: Things You Should Know
Earthquake insurance has a special deductible that differs from a regular home insurance deductible. Instead of paying a fixed amount during a claim, you are required to pay a percentage of the sum insured, typically 5% to 10%, depending on your share of the loss.
For example, if your home is insured for ₹20 lakh and the deductible is 5%, you must bear ₹1 lakh of the loss yourself. The insurer will pay the remaining approved claim amount after this deduction.
Because earthquake damage can be extensive, this percentage-based deductible can significantly affect your out-of-pocket cost. That’s why it’s important to understand how deductibles work and choose the right sum insured and deductible level when buying earthquake insurance.
Who Should Buy Earthquake Insurance?
How to File an Earthquake Insurance Claim?
Below is the general procedure to file an earthquake insurance claim:
FAQs - Home Insurance Add-Ons
-
Q.1 Will earthquake insurance cover my commercial property?
Ans: Yes, insurance companies also provide coverage for commercial properties in an earthquake. However, you will have to purchase additional commercial earthquake insurance for your property. -
Q.2 Will my damaged vehicle also be covered under my existing Earthquake insurance policy?
Ans: No, earthquake insurance does not provide coverage for vehicles as it is a part of home insurance and only covers residential properties. However, you can buy comprehensive car insurance to protect your car from natural disasters such as earthquakes, floods, and cyclones. -
Q.3 Is the premium for earthquake insurance the same for every other house?
Ans: No, the earthquake insurance cost depends on a lot of factors such as the structure and size of the house. A house located in an earthquake-prone location will always bear a higher premium amount. -
Q.4 Does earthquake insurance also cover tenants?
Ans: No, earthquake insurance for renters will have to be separately bought by your tenants as your existing earthquake policy will only cover the house and your belongings.
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