With Climatic Conditions Changing Rapidly, Stay Protected with Home Insurance

Posted on: Dec 1, 2022 | | Written by:

With Climatic Conditions Changing Rapidly, Stay Protected with Home Insurance

Published on November 30, 2022. EST READ TIME: 3 minutes

Protect Your Residence From Changing Climatic Conditions – Home Insurance

Climatic conditions have been changing rapidly and there are many reasons that can be blamed for it. Doing our bit to save the environment is essential but there are some things that are not under our control. In October 2022, we saw how unseasonal rain created havoc in many parts of the country and this is a clear indication that we need to be prepared for the worst. The first and foremost thing that should be done is to buy home insurance. This is important to keep your home protected and the contents in case of a flood or water spoiling the house. Home content insurance is necessary as it reduces financial stress in case of a loss. When you see unseasonal rains or other natural disasters, adequate home insurance coverage is essential. Experts in climate and the changes in it say that floods, cyclones, earthquakes and storms have become frequent and this makes flood insurance important.

How is the Unseasonal Rainfall Affecting People?

When the regular monsoon comes, the intensity is manageable and the climate is such. With unseasonal rains, home insurance can avoid huge financial losses in case of natural catastrophes. Homestays are protected, and the insurance company takes care of the financial stress. Of course, nothing can reduce mental trauma, but things are easier to handle when you do not strain financially.

The chances of flooding increase in unseasonal rains as the level of preparedness are also less. During this time, drains might have blockages leading to flooding, making flood insurance mandatory. Controlling the situation is also tough for authorities; thus, being self-prepared and protected is important.

Why is Insurance Considered to be Important during Unseasonal Rainfall?

Any inundation or flood will damage not only the building but also the contents of the house. A house is a dream for many, and to make it means a lot of handwork. Severe rainfall can lead to vulnerable damage to the house. Building everything from scratch is not easy and can be a significant financial burden for many, as this is like rebuilding everything from scratch.

This makes home insurance essential. A comprehensive policy will cover both immovable and movable assets of the house. The movable assets are the contents of the house and these get covered under home content insurance. The insurance policy covers the house and the contents against any losses or damages that are caused due to inundation or flooding caused due to rains or any manmade calamities or malicious damage or earthquakes.

In case of any damage, the insurance company helps by paying the assessed loss amount as per the sum insured and this helps repair that get damaged due to the rains.

Does Insurance Policies Cover for ‘Rain Damage’?

The question that many ask is whether flood insurance is a part of the insurance you buy for your house. The answer is simple to understand. Most insurance policies that are sold by insurance companies provide coverages for natural calamities that would primarily include hurricanes, storms, floods, earthquakes, tsunamis and cyclones. The complete list is available in the policy document. When buying an insurance policy for your home, you must ensure you buy a comprehensive policy which covers both manmade and natural disasters and calamities. All insurance policies have exclusions and these are clearly mentioned in the policy. Thus, you should read the policy document carefully to know what will not be covered in the house insurance policy. When getting flood insurance, you must ensure the following are covered:

● Household contents

● Structure

● Loss due to fire breakout

● Loss due to short circuit

How to Get the Right Insurance Plan?

Having insurance for your home is important, but what is more important is to have the right insurance. There are some important things that must be kept in mind.

1. Step 1: Understand the plan and your need:

A home insurance policy can cover the structure of the house and this can be called structure insurance. The other is home content insurance which covers the content of the house. Items like furniture, jewellery, electronics etc. are all covered in the policy. Thus, while buying a policy ensure you have coverage for both.

2. Step 2: Understand the type of home you wish to cover:

The coverage you get and what you need also depends on the type of home you stay in. Your house could be an apartment, vacation home, rented house or bungalow. The risks associated with each are different and thus, the insurance policy and coverage changes. Thus, you need to keep the risks in mind before choosing a policy.

3. Step 3: What is the location of the property?

The location of the house is a very important factor when it comes to buying house insurance. A home in the hills will need different coverage versus a home near the sea. Some areas are prone to earthquakes whereas there are some that are prone to cyclones. You need to buy insurance keeping your location in mind and take both structure and content insurance.

4. Step 4: Provide complete information to the insurer:

Correct and complete information is a must when buying insurance else it may lead to non-disclosure or misrepresentation of material fact. This ensures that the insurance company gives adequate coverage and the right protection. Also, any discrepancy can lead to claim rejection which defeats entire purpose of buying home insurance. Thus, be careful and give correct information when buying insurance.

5. Step 5: Check the possible add-ons

Besides a standard policy, there are add-on coverage options available. You only pay for the ones you choose. This help makes the policy customised to your needs. Thus, along with a comprehensive policy, you should choose your add-ons to ensure you have good coverage.

Conclusion

Of all the investments one does in life, buying a house is one of the most significant ones. Though people invest a lot in their house and choose each thing in it, home insurance is not on their priority list. If things go wrong and there are losses and damages, it is this insurance policy which helps and reduces the financial strain it causes. Climate is changing, and there are unexpected rains and other calamities, thus, in these times the house insurance policy is advisable. So, if you still do not have an insurance policy for your home, you must do it at the earliest and enjoy living in your dream house, stress-free.

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

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