The Delhi-Noida Earthquake Makes Us Realise Why Earthquake Insurance is Not An Option

Posted on: Feb 21, 2025 | 3 mins | Written by: HDFC ERGO Team

The Delhi-Noida Earthquake Makes Us Realise Why Earthquake Insurance is Not An Option

On February 17, 2025, a 4.0-magnitude earthquake shook Delhi and Noida, causing widespread panic among residents. Though no major damage or casualties were reported, the tremors served as a stark reminder of the region’s vulnerability to seismic activity. As Delhi falls under Seismic Zone IV—a high-risk earthquake zone—it is crucial for individuals and businesses to understand the importance of earthquake insurance.

Why is Earthquake Insurance Necessary?

Earthquakes are unpredictable and can cause severe damage to homes, infrastructure, and businesses. Unlike floods or fires, which may be covered under standard home insurance policies, most insurance plans in India do not cover earthquake damage unless specifically included as an add-on. This means that individuals without earthquake insurance may have to bear the full financial burden of repairing or rebuilding their homes and offices.

Risks of Ignoring Earthquake Insurance

1. Financial Strain: A strong earthquake can cause structural damage that requires expensive repairs. Without insurance, homeowners must pay out of pocket, leading to financial distress.

2. Loss of Property Value: A damaged building loses its market value, making it difficult to sell or rent in the future.

3. Business Disruptions: For business owners, earthquake damage can lead to operational shutdowns, resulting in significant revenue loss.

4. Costly Relocation: In case of severe destruction, people may need to relocate temporarily or permanently, adding unexpected expenses.

What Does Earthquake Insurance Cover?

Earthquake insurance typically covers:

Structural Damage: Repairs or reconstruction of buildings damaged by an earthquake.

Contents Coverage: Compensation for damaged household items like furniture, electronics, and appliances.

Additional Living Expenses: If a house is uninhabitable due to earthquake damage, insurance may cover temporary accommodation costs.

Delhi and Noida: High-Risk Seismic Zone

Delhi, Noida, and the entire National Capital Region (NCR) are in Seismic Zone IV, meaning they are prone to strong earthquakes. The region has experienced tremors multiple times in the past, including the devastating 2001 Bhuj earthquake and the 2015 Nepal earthquake that impacted parts of North India. Today’s tremor is a wake-up call for residents to take proactive measures, including securing earthquake insurance.

Who Should Get Earthquake Insurance?

Homeowners: Whether you own a flat in a high-rise or an independent house, earthquake insurance ensures financial security.

Renters: While your landlord’s insurance may cover structural damage, your personal belongings might not be protected without a policy.

Business Owners: Commercial establishments should consider earthquake insurance to avoid business disruptions and financial losses.

How to Get Earthquake Insurance in India?

Check with Your Insurer: Many general insurance providers offer earthquake coverage as an add-on to home insurance or property insurance.

Compare Policies: Look for coverage details, premium costs, and claim procedures.

Understand Exclusions: Some policies may not cover pre-existing damages or minor cracks.

Conclusion

The Delhi-Noida earthquake is a reminder that earthquakes can strike anytime, without warning. Investing in earthquake insurance ensures that you and your family are financially protected against unforeseen disasters. Instead of waiting for the next tremor, act now and secure your home and assets with a comprehensive earthquake insurance policy.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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