How to buy home insurance to protect against natural calamities

Natural disasters can strike anytime. While we can do little to prevent such calamities, we can secure ourselves with adequate insurance. 
  • Take cover
No one can say when the next natural disaster will strike. “In India, only life, health and vehicle insurances are common. However, earthquakes and floods can strike any time. We need to protect our assets from such calamities,” says Abhishek Mishra, CEO, Bonanza Insurance. One way of doing so it is to opt for home insurance. Most home insurance policies automatically cover damage due to cyclones, earthquakes and the like. 

Household insurance covers the structure and furniture and fittings inside a house. While it is generally suggested that one opt for a comprehensive plan when it comes to car insurance, choosing the right household insurance policy can be trickier. 

  • Buy structure cover only if needed
Before buying a comprehensive home insurance policy, find out if you need to take cover for the structure. Most housing societies insure the building and therefore, individual flat owners don’t need to opt for structure cover. “Flat owners need cover for the contents inside the house,” says Mishra. However, check if the policy bought by the housing society covers reconstruction costs and not only the depreciated value of the building. Several housing societies settle for depreciated building value to keep premiums low.

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