Home insurance is essential to take preventative precautions since insurers often refuse payouts under the guise of contributory fault.
During the rainy season, the most common worry for homeowners is property damage. These incidents occur every year during floods in many places of India. However, just a tiny number of properties in India are fully insured, leaving the vast majority exposed.
“Insuring your home is no longer a luxury. However, statistics show that fewer than 1% of Indian homes are insured, leaving the remaining 99 percent exposed to damage from monsoons, fires, and other natural disasters,” says Pranjal Kamra, CEO of Finology Ventures, a financial services firm.
How Home Insurance Can Assist
House insurance plans often do not include a waiting period, and claims are paid immediately in the event of a natural disaster. “Home insurance may assist consumers in protecting their property and the contents of their home.” Any fire or short circuit caused by flooding is typically covered by house insurance. Storm, lightning, and other natural disasters are often covered by house insurance,” explains Kunal Jha, director of Motor Product and Actuarial at Digit Insurance.
What kind of insurance should you get?
Kamra recommends purchasing a house insurance policy that offers 360-degree protection, including coverage for exterior damages as well as damage to furniture, appliances, and other items. It should ideally include personal accident coverage for both members and staff.
“If you reside in a flood-prone location or an earthquake zone, be sure you have enough coverage for natural disasters.” “Gadget repair, pest control, and plumbing/carpentry are valuable extras,” he explains.
Avoid contributing to negligence.
It is essential to take preventative precautions since insurers often refuse payouts under the guise of contributory fault. “From an insurer’s standpoint, it is the property owner’s main obligation to preserve and defend the insured assets from the vagaries of nature, as if they were not covered,” says Vivek Narain, an insurance consultant with Sana Insurance Brokers. “If the insurance company discovers any contributory negligence, it may result in the rejection of filed claims or significant reductions from payable claims for aggravation of losses,” he says.
READ ALSO: IRDAI extends ‘use-and-file’ framework to life insurance companies
Check before you purchase
Examine the many forms of coverage provided by the insurance provider and determine whether or not they meet your demands. House insurance covers terrible occurrences such as burglary, unintentional fire, explosion, and other similar risks as specified in the policy agreement, in addition to safeguarding your home and its belongings against floods, earthquakes, and storms. “Some plans simply protect the contents of your house, while others cover both the contents and the construction.” “Some insurers will even safeguard your valuables, such as cash, gold, and so on, up to a specific amount,” Jha explains.
