Monsoon fury: Does your insurance cover flooding, heavy rains? Here's how to buy a perfect cover

Relentless flooding has become a regular annual event battering several states across India, underscoring the growing threat of extreme weather. Since the monsoon began on June 20, Himachal Pradesh alone has reported at least 78 deaths, with 50 lives lost to rain-related disasters like landslides, flash floods, and cloudbursts.

Last year, states like Andhra Pradesh, Telangana, and Gujarat faced similar devastation due to torrential rains. Meanwhile, regions such as Assam, Odisha, Uttarakhand, and Himachal Pradesh are hit by floods almost every year, causing massive property losses.

As monsoons bring increasingly intense and frequent calamities, safeguarding your home and finances has never been more crucial. The financial blow from such disasters can be severe enough to push families and businesses to the brink of bankruptcy.

So, how can you protect your home if you live in a flood-prone area? The answer lies in having the right insurance.

“While most Indians cherish their home as their most prized asset, financial planning for unexpected disasters like heavy rains, flash floods, cloudbursts, or general flooding often takes a backseat,” says Krishna Kumar Pathipaka, National Head – Property & Engineering Claims at Digit Insurance.

Home insurance serves as an essential financial shield, covering your property against a wide range of risks. Standard home insurance policies typically protect against losses from fire, theft, and natural disasters such as earthquakes, floods, tsunamis, cyclones, lightning, and landslides.

If you reside in areas prone to heavy rains or floods, it’s vital to check whether your policy explicitly covers flood-related damages. Some basic policies might exclude certain types of water damage or may require add-on covers for comprehensive protection.

Choosing the right policy

You can choose from three main types of policies: 

> Building Cover: Protects the physical structure of your home, including permanent fixtures.
> Contents Cover: Safeguards your personal belongings within the house, like furniture, electronic goods, and appliances.
> Comprehensive Cover: A combination of both building and contents coverage.

Tenants can insure only the contents of their rented property, while owners can secure both the building and its contents. Specific policies cater to individual apartments, independent buildings, and villas, allowing for tailored coverage based on occupancy and property type. 

A robust home insurance policy provides crucial protection against the escalating threat of natural disasters. The increasing frequency of torrential rains and urban flooding highlights the importance of this coverage, as it can cover the costs of repairing your home's structure and replacing damaged contents due to inundation.

Upgrading your cover

To enhance your protection, consider these optional add-ons:

> Cover for Valuable Contents on Agreed Value Basis: For high-value items like expensive jewellery or art, this ensures coverage at a pre-agreed value at the time you purchase the policy.
> Personal Accident Cover: Offers financial protection in case of accidental injury or death to insured individuals.
> Loss of Rent/Rent for Alternative Accommodation: Helps with temporary living costs if your home becomes uninhabitable due to a covered event.

The Bharat Griha Raksha Policy, spearheaded by IRDAI, aims to provide standardized and optimal coverage for homeowners. Digit also offers their own property insurance products, often with customizable add-ons like Digit Flexi Griha Raksha Policy, allowing you to tailor coverage to your specific needs.
Thoroughly reviewing your policy document to understand both coverage and exclusions is crucial. By prioritising a comprehensive home insurance policy, you can build a 360-degree financial shield against the unpredictable forces of nature, ensuring peace of mind and a quicker return to normalcy after an unfortunate event.