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Delhi’s recent earthquake underscores the need for home insurance. Vivek Chaturvedi from Go Digit General Insurance noted that standard policies cover natural disasters. Review terms and reliability.
Home Insurance: Things you must know beforehand.
Imagine being jolted awake in the dead of night, the ground shaking beneath you. That was the reality for many in Delhi recently when a powerful earthquake struck. Thankfully, the city escaped major damage, and there were no reported casualties. But the event serves as a stark reminder: are our homes adequately insured? Specifically, does our home insurance cover earthquake-related losses, and if so, to what extent?
Speaking to News18, Vivek Chaturvedi, CMO and Head of Direct Sales, Go Digit General Insurance said that standard home insurance policies typically include coverage for natural disasters like earthquakes.
He explained that a standard policy, like the ‘Bharat Griha Raksha’ policy, covers events like earthquakes, landslides, floods, cyclones, storms, other natural catastrophes, fire, explosions, aircraft damage, and even acts of terrorism.
“It’s important to understand that a comprehensive coverage usually applies to both the structure of your home (the building itself) and your belongings inside (the contents),” he added.
Bharat Griha Raksha Policy is a standard home insurance policy introduced by the IRDAI (Insurance Regulatory and Development Authority of India) to provide basic and affordable coverage to homeowners. It typically includes coverage for common perils and can be enhanced with add-ons. It serves as a good baseline for coverage.
“Borrowers should consider opting for home loan insurance due to our country’s vulnerability to natural disasters, including earthquakes. Areas in Northern and Western India are prone to earthquakes, and often face a significant risk of property damage,” said Atul Monga, CEO & Co-founder of BASIC Home Loan.
What Homeowners Should Check To Stay Protected?
Chaturvedi said that before buying a home insurance plan, do your due diligence carefully as it is one of the most valuable assets you own. Check the policy terms and conditions, coverages it provides, inclusions and exclusions carefully before opting for a plan.
He cautioned to carefully choose the add-ons that make the most sense to you.
Moreover, he said, check the claims settlement ratio, customer servicing levels, response time, ease of filing claims of the insurer to narrow down on the insurer of your choice.
“It’s important to remember that every policy is different, and the specific coverage details, exclusions, and limitations will vary. Always read your policy document carefully and ask your insurer any questions you have to ensure you understand what is and isn’t covered,” he added.
What Are Types of Add-On Cover?
Add-on Covers: These are optional covers that you can add to your basic home insurance policy to enhance your coverage. Some common examples include:
• Cover for Valuable Contents: This provides extra coverage for high-value items like jewellery, artwork, or collectibles, often at an agreed-upon value.
• Personal Accident Cover: This offers financial protection in case of accidental injury or death to the insured individuals.
• Additional Living Expense Cover: This helps cover temporary living costs if your home becomes uninhabitable due to a covered event.
• Tenant Liability Insurance: This protects tenants from liability claims related to damage to the property raised by the owner of the property.
• Cover for theft, burglary, electronic items: Your home insurance may not necessarily cover theft, burglary or any damage to your electronic items. You might have to opt for additional add-ons to cover your valuables. Check your policy terms to understand different types of coverages your policy provides.
