The world is watching in horror as wildfires engulf parts of California. The wind-driven brush fire in Pacific Palisades and Malibu exploded on Wednesday, January 8, and by late evening, had charred more than 17,200 acres and destroyed approximately 1,000 structures. People had to leave their homes and run for safety. The fire did not spare anyone, from common people to billionaires.
While wildfires destroying cities are not common in India, one never knows when one may be struck by a natural calamity that can leave one homeless and cause immense damage to one’s finances. This brings to the fore the importance of home insurance. While more and more people are protecting themselves with life and health insurance, home insurance penetration in India is only one per cent.
In India, every insurer is mandated by the Insurance Regulatory and Development Authority of India (Irdai) to offer Bharat Griha Raksha, a standard home insurance policy. The home insurance policy needs to provide coverage against loss, damage, and destruction of the home building, along with its contents against the risk of fire, earthquake, floods, and other natural calamities.
Coverage Of The Building
Home insurance policies cover damages caused by fire; they also provide protection against natural disasters like floods, earthquakes, cyclones, storms, etc. (as mentioned in the policy cover). However, it’s important to read the policy details to know exactly what is included in order to avoid any unpleasant surprises in the future.
Coverage Of Contents
Home insurance usually covers the contents inside your house, like furniture, appliances, personal items, etc. Under Bharat Griha Raksha, additional valuables in the home can be covered for up to Rs 5 lakh.
“Some of the expensive items like electronics and jewelry may need extra coverage through add-ons (depending on the plan that you select). You might have to share a list of such valuables with your insurance provider for complete protection,” says Rakesh Goyal, director, Probus.
One can choose a policy that covers both your house and its contents. Some of the add-ons such as valuables cover or disaster cover can provide that additional security. “It’s necessary to keep your policy updated with the latest value of your belongings and always keep an eye on what is covered and what is not covered to avoid any surprises later,” says Goyal.
