New Delhi: There has been a series of earthquakes of small magnitude on the Richter scale recently in Delhi-NCR, Gujarat and other parts of the country. Though most of them have been on a comparatively lower Richter scale but that does not eliminate the possibility of a bigger earthquake.
When we look at it from the personal finance perspective, an earthquake can have a devastating impact on an individual’s life in terms of monetary losses. In such an event, insurance can be of great help.
Naval Goel, CEO & Founder of PolicyX.com said: “When it comes to home insurance, apart from the specific exclusions of your policy, all damages are covered up to the extent of the sum insured. In the case of natural disasters, insurance companies usually set up helplines to resolve and fast track claim services. In such scenarios, the insurance regulator comes out with specific guidelines for insurance companies so that the insured can easily get the required assistance in the hour of need. Natural disasters come under the 'Act of God'. It is always advisable to opt for comprehensive coverage that can provide protection during natural calamities."
Under a comprehensive home insurance policy, though the insurer will not pay you for the regular wear and tear of your house, it will certainly pay you for any damage caused by natural calamity including flood, earthquake, cyclone, etc. The whole idea of buying home insurance is for securing your finances at the time of calamities.
Natural calamities such as floods, earthquakes, or a storm can cause damage to property. There are two types of property or home insurance policies. A basic fire insurance policy and a bundled or comprehensive policy, or householder’s package.
The basic fire insurance policy covers fire, lightning, storm, and flooding. Some insurers offer the cover for earthquakes as an add-on. However, the premiums can vary according to the geographical zone your house is located in.
While opting for a home insurance plan, it is advisable to check what natural disasters will be covered. Also, the policy buyer must make sure that the plan covers the natural calamities that the region is prone to.
In addition, you also need to remember it is not just important to have a policy for the structure, but it is equally important to have adequate insurance for the contents of the house as well, including T.V, furniture, fixtures, electrical and mechanical appliances.
