To guarantee adequate coverage, assess the current rebuilding cost of your home and the replacement cost of its contents to determine appropriate sum insured limits. If your home includes additional structures like garages or compound walls, make sure they are declared and covered in your policy.
Cyclone Remal, the first major cyclonic storm of the year, hit the shores of India recently, causing extensive damage to infrastructure and property. Several casualties were reported from the state of West Bengal. In circumstances like this, what steps can you take if your home is affected by a cyclone:
According to experts, lately, coastal regions of India have been struck by cyclones like Amphan, Nisarga, Yaas, and most recently, Remal, which affected the eastern coast, causing property damage and further losses. “Homeowners should make sure that their home and its contents are well insured. Most standard home insurance policies and their variants give assurance against damages caused by perils like cyclones, floods, and earthquakes. However, it is wise to review the coverage terms and exclusions when purchasing a home insurance policy. To guarantee adequate coverage, assess the current rebuilding cost of your home and the replacement cost of its contents to determine appropriate sum insured limits,” Srabasti Dhali, vice president & national manager - PCG & Home, TATA AIG General Insurance said.
Parthanil Ghosh, director, and Chief Business Officer, HDFC Ergo General Insurance added, “To keep your home safe from future calamities, we advise you to identify the potential natural calamity risks associated with your location, such as cyclones, floods, earthquakes, etc. and carefully review your current insurance policy to ensure it offers coverage against those natural perils. For comprehensive coverage, one can also increase the coverage limits to ensure it matches the full cost of rebuilding or repairing the home in case of any natural calamity. It is always wise to regularly review and update the insurance coverage to ensure it reflects any home improvements or changes in property value.”
Our homes are often the biggest investments we make and protecting them is paramount. If you have opted for a home insurance policy, it can help provide relief in the aftermath of a dreadful natural calamity. A comprehensive home insurance plan can help cover both the structure and the contents of your home. This means not only will any damage to the physical structure of your home be covered, but the plan will also cover the contents of your home like furniture, appliances, and other personal belongings.
Vivek Chaturvedi, Chief Marketing Officer (CMO) and head of direct sales, Go Digit General Insurance said, “In case a cyclone affects your home, your top priority should be ensuring the safety of yourself and your loved ones by heeding evacuation instructions or finding safe shelter. After addressing any safety issues, return to your home once it is completely safe. After assessing the damages, reach out to your insurance provider to report the same and initiate the claims process. Capture images or videos of the damage incurred and share the same with the claims assessor. Make sure you understand the coverages of your policy and are aware of the things that are covered in your policy and any exclusions. In case you have taken a separate policy for structure and contents with two different insurers, make sure you lodge your claim with both insurers.”
Laying the groundwork for a strong home insurance policy takes some initial effort but it pays off in the long run. Before diving into specific plans, become familiar with the natural disaster landscape of your area. Does your location sit in a flood-prone, cyclone zone, or earthquake belt?
“Understanding these potential threats empowers you to choose the right insurance coverage. Take proactive steps to get the most out of your coverage. Discuss these risks with your insurer to determine the appropriate plan. To ensure smooth claims filing, document your valuables with photos, videos, and a detailed inventory. Consider installing preventive measures like smoke detectors, water leak sensors, or sprinkler systems, as these can not only minimize potential damage but also lead to insurance premium discounts,” Chaturvedi said.
Home insurance offers various coverage options to fit your needs. You can choose a policy that covers just the structure of your home, its contents, or both. The premium you pay depends on several factors. Home insurance coverage for locations prone to disasters like cyclones or other natural calamities may cost more. Similarly, the age, size, and building materials of your home affect the premium price. The value of your belongings also impacts the contents coverage cost. Adding extra coverages for jewelry protection, etc., may increase your premium; so, choose only the add-ons you truly need.
To avoid surprises during a claim, you should understand the policy's particular inclusions and exclusions. “Second, gauge the expense of remaking your home and supplanting its items to decide a suitable safeguarded aggregate. This ensures that you have sufficient coverage to recover totally from any harm. Third, review the approach's deductibles and charges. While more prominent deductibles can bring down your charges, they likewise increment your installments in case of a case.
Fourth, break out the terms and conditions that apply to various developments like carports, compound walls, and sheds. Ensure these are declared and remembered for your protection,” Dhali added.
Also, doing your research and carefully choosing the plan that best suits you is important in getting the maximum benefit from your insurance company while also paying the appropriate premium. Get quotes from multiple insurers to compare coverage options and pricing to ensure you get the best deal. Also check the claims experience of the insurer, especially in the home insurance segment to make a better decision. Finally, carefully consider the Sum Insured, the amount you'd receive in case of total damage. Choose an SI that reflects the true rebuilding cost of your home, ensuring you have enough financial support to rebuild without a hitch.