The importance of home insurance against natural calamities cannot be ignored. Here’s a guide to insurance preparedness, exploring various considerations for homeowners and tenants.
The Insurance Regulatory Development Authority of India (IRDAI) has directed the insurance companies to expedite the claim settlements of Delhi flood victims as part of efforts to provide quick relief. It asked them to promptly mobilize all necessary resources, including investigators, surveyors, and loss adjustors, to ensure quick settlement of claims.
Additionally, insurers have been urged to promptly communicate the nomination of a senior executive in each affected state or Union Territory (UT) to the chief secretary or officer concerned. Districts reporting a high number of claims should be overseen by a designated district claims service head. Insurers are also required to provide extensive publicity by sharing the contact details of these officers on their websites and in the media.
To facilitate speedy processing and settlement of claims, insurers are advised to respond and assist claimants through their 24x7 helplines. They should establish special claims desks at the district level and assign delegated claims settlement teams. Moreover, insurers are encouraged to make on-account payments at the earliest convenience. Policyholders are also encouraged to utilise electronic communication methods for correspondence whenever possible. These measures aim to ensure effective support in the claim settlement process of flood victims.
As flash floods have become a regular feature even in cities during excessive rainfall, it is crucial to safeguard your home with proper home insurance. Cities like Delhi, Mumbai, Chennai, and Bangalore have witnessed the destructive power of floods in recent times.
Says Gurdeep Singh Batra, national head of retail non-motor underwriting and coinsurance at Bajaj Allianz General Insurance, “When we buy a house, we make one of the most significant investments of our lives. Because of this, we should shield it from all dangers. Purchasing a home insurance policy is the most effective way to protect your property, and there are varieties of flexible alternatives available in the market today.”
Understanding Home Insurance Coverage:
Home insurance provides protection against natural calamities (earthquakes, floods, explosions, lightning, storms, volcanic eruptions), man-made hazards (theft, burglary, riots, and terrorism), and accidents (fire, electrical breakdowns, and damage caused by collisions). There are three primary options available: building-only cover, content-only cover, and comprehensive cover. Opting for a comprehensive cover is recommended as it provides protection for both the building and its contents.
Coverage For Flood Damage:
Home insurance covers both partial and total damage caused by floods. In the case of partial damage, such as water entering your premises, the policy covers the damaged flooring, walls, paint, and contents. Adequate coverage will depend on the sum assured and the extent of the damages. If your house is completely destroyed or washed away by a flood, the insurance company will pay to rebuild the house up to the sum insured or the actual cost of reconstruction, excluding the cost of land.
Determining Home Insurance Premiums:
Home insurance premiums depend on various factors, including the sum assured and coverage. It is advisable to consider add-on covers for additional protection, such as coverage for portable electronics, new-for-old covers, and alternate accommodation. These add-ons provide extra security for valuables and ensure a hassle-free accommodation during repairs.
Considerations For Homeowners And Tenants:
Home insurance requirements vary depending on ownership. For individual homeowners, comprehensive coverage that protects both the building and its contents is recommended. In the case of flats in apartments, housing societies should insure the structure, while flat owners can focus on insuring the contents. Tenants living in apartments or independent houses should consider "content-only" insurance to protect their belongings.
Flood Preparedness:
Devastating floods in Himachal Pradesh and Uttarakhand this year have destroyed many homes and roads and caused other serious problems. In addition, Delhi and its neighbouring areas are currently grappling with the alarming rise in water levels of the Yamuna River.
Given the unpredictable nature of natural calamities, insuring your home against floods and other disasters is a wise decision. Home insurance provides financial protection and peace of mind in times of crisis. By understanding the coverage options, considering add-ons, and choosing the right policy, you can safeguard your home and belongings from the devastating effects of floods. Prioritize home insurance and secure your future against the uncertainties of natural disasters.