Heavy rains to lash across the country between Oct 12-16, here's how you can insure your home from rain's fury

Over the next week, super heavy showers are set to hit the Indian subcontinent, especially in the states of Tamil Nadu, Kerala, South Interior Karnataka, Konkan and Goa, Madhya Pradesh, Maharashtra, Arunachal Pradesh, and Gujarat, the IMD (Indian Meterological Department) has predicted.

Yesterday, India's financial capital, Mumbai was hit by a surprise, albeit hefty deluge of rain. Consequently, a yellow alert was issued for Thane, Pune, Palghar and other areas near to Mumbai.

Between October 13-16, very heavy rainfalls are also anticipated in Kerala, Tamil Nadu, Andaman and Nicobar Islands, Gujarat and Andhra Pradesh.

It's no secret that incessant rains also bring about significant economic damages. Per media reports, the average economic impact on India due to floods between 2011 and 2021 has been a staggering Rs 25,805 crore.

As seen very often in the past, a constant barrage of torrential rains can also quickly create a flood-like situation, which can wipe away houses, vehicles and everything that comes in its way.

Imagine this-your whole house is flooded. Water has seeped into everything—your walls, furniture, and even the plumbing. Without a home insurance, you'll have to spend a hefty amount towards repairs and to get your life and home back on track.

Getting your home insured

So, if you are wondering how to protect your hard earned material but immovable assets like house, the answer is right in front of you- Home Insurance.

Says Dilip Baba, Head of Commercial and Speciality Underwriting, Go Digit General Insurance, "People usually spend their entire life savings on purchasing a home. However, people rarely think about how to protect their investment. By investing in the safety of home insurance, you can enjoy peace of mind knowing that your property is covered in case of unforeseen events".

With home insurance, you can opt for three types of coverage-structure, content and comprehensive.

While structure simply insures the physical, immovable formation of your house (walls, roofs), content coverage goes a step ahead and takes care of damage caused to your movable items like furniture, electronics and other items due to natural calamities, theft and more, up to a certain limit. This can also include any valuable artwork or antiques, or additional installation like solar panels you might have at your home.

A comprehensive home insurance brings together both structure and contents in its insurance ambit. Having a home insurance can not just protect you from natural calamities like floods, but also from unforeseen events like theft, fire and more. The annual premium of a home insurance policy can range between Rs 2,000 to Rs 10,000 depending on the type and extent of coverage taken.

Before buying a policy, be sure to clarify whether it offers actual cash value, which considers depreciation, or replacement/reinstatement cost, which covers the full replacement without depreciation deductions.

To be on the safe side, you can also choose additional covers like accidental death insurance, or rent coverage, if you lose out on rental income due to damage caused to your property. You can use the carpet area of your house to get a sense of your home insurance requirements. For instance, data from Digit Insurance suggests that during the 2022 Bengaluru floods, the claims raised under home insurance went as high as Rs 45 lakh for a 2-floor villa.

Says Amit Bhandari, Chief Technical Officer at Magma HDI General Insurance, "When selecting a policy, it’s crucial to assess the unique risks that your home may face, particularly if you live in an area susceptible to natural disasters. You should tailor your coverage to address these risks while considering premium reduction strategies, such as excluding unnecessary coverages".