Car and home insurance policies might help you limit your losses in the event of a natural disaster.
Landslides and flash floods in Uttarakhand and Kerala have killed more than 80 people and injured many more, causing severe devastation and the loss of homes and possessions. While there isn’t much you can do to prevent such damage, you may minimize your losses by purchasing insurance for your home and other possessions, such as cars, ahead of time.
India is a tropical country with frequent rainfall, which causes floods, landslides, and cyclones in many areas. These natural disasters typically result in the loss of property and personal items, in addition to the danger they bring to human life.
Homeowners’ insurance
“While humans have little influence over natural disasters, purchasing a comprehensive property insurance coverage will help safeguard your home against floods, earthquakes, and burglaries.” According to Adarsh Agarwal, appointed actuary, Go Digit General Insurance, “paying a fixed premium towards one’s property, especially for persons who reside in locations prone to natural catastrophes, might offer relief and give a financial cushion, should an unpleasant occurrence occur.”
Property insurance, he claims, serves as an umbrella plan, providing a variety of coverage under a single policy. Depending on the add-ons selected, such policies may also cover the contents of the property and, in some situations, the policyholder’s personal obligations, in addition to covering the risk of property damage from stated reasons or hazards.
Property insurance often covers losses caused by fire, lightning, floods, cyclones, and other natural disasters. They may not, however, cover damages resulting from conflicts, nuclear hazards, and so on. The coverage and exclusions of one policy may differ from those of another.
“Most consumers understand the value of home insurance only after they have experienced a major loss.” As a result, obtaining a decent property insurance policy is recommended because it provides appropriate financial protection at a reasonable cost,” Agarwal explains.
Most insurers charge a premium based on the sum insured, which is calculated using the value of the property. In most cases, property insurance is not too costly.
Insurance for automobiles
Car insurance protects the owner of the vehicle from financial losses that may occur as a result of an unexpected incident involving the vehicle. Third-party, standalone own-damage (OD), and comprehensive coverage are the three types of car insurance policies available, depending on the scope of coverage.
The own-damage and comprehensive policies, in particular, cover flood-related losses. A standalone own-damage car insurance policy covers damages and losses to your vehicle caused by accidents, collisions, natural disasters, fire, and theft.
A comprehensive car insurance policy covers damage to the vehicle caused by an accident, theft, or natural disasters such as floods. Third-party property or vehicle damage is also covered by a comprehensive plan. It also contains optional coverages like zero depreciation, engine protection, and passenger protection.
“Flood damage is covered by a comprehensive auto insurance policy. However, Agarwal recommends purchasing a “engine protection add-on” to assure that any damage to the engine and its components is covered.
Insurance coverage serve as a buffer against unforeseen occurrences. So don’t wait until an event occurs before purchasing a cover.