Be Monsoon Ready with Home Insurance Damage Cover

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Every year, the monsoon causes significant damage in urban areas. This year during the monsoon, cities like Delhi, Bengaluru, and Mumbai have faced severe flooding situations. Heavy rainfall has caused damage to many homes as well.

To protect your pocket from such damages, home insurance is crucial. Let’s talk about home insurance. Which type of home insurance covers damages caused by the monsoon and what aspects should you consider?

Types of coverage in home insurance

There are three types of coverage in home insurance – Structure, Content, and Comprehensive.

As the name suggests, Structure covers the physical structure of the house. This includes walls, foundations, roofs, and other permanent fixtures of the house.

Content coverage, on the other hand, protects movable items in the house. This includes furniture, appliances, electronics, clothes, etc.

Comprehensive coverage includes both structure and content cover in one policy. This means coverage for both the house and its contents.

However, getting all types of coverage is not always the best option for everyone. Here’s how to understand it. If you own the house, both Structure and Content cover are necessary, so you should opt for Comprehensive coverage. If you have rented out your house, you should not get Content cover; only Structure cover is sufficient. Similarly, if you do not own the house and live in a rented place, only Content cover is appropriate.

Consider these factors as well…

Another important point to consider while choosing coverage, determine the sum insured. The sum insured should be enough to cover the cost of rebuilding the house in case of total damage. This sum insured should be based on the Carpet Area.

Experts recommend calculating the Sum Insured by multiplying the Carpet Area by the cost of construction per square foot. Home insurance covers only the cost of construction, not the land value. For instance, if the construction cost is between ₹5,000 to ₹7,000 per square foot, multiply this by the total square footage and add 10 to 15 percent to the sum insured. It’s better to be over-insured than under-insured to avoid potential losses.

Similarly, for content insurance, insurance companies generally require an inventory of items. This means listing the year of manufacture and model of each item. Therefore, create an inventory of all your belongings and estimate their total value. Ensure that the insurance covers at least this amount in case of total damage, so you can replace the items.

Does your insurance cover monsoon damage?

Another thing to check is whether the coverage includes monsoon damage. Generally, flood damage is covered under most home insurance policies. But it’s still important to verify that your policy covers storms, floods, and heavy waterlogging to ensure full protection during the monsoon.

You can also opt for additional riders like Personal Accident Cover. This is particularly important if you live in an area prone to flooding. This coverage will protect you in case of accidents caused by floods.

Lastly, another important point. If you live in a high-rise apartment, you need to be aware of some additional factors. Damage in one area of a high-rise can affect all residents of the building. Residents of high-rise apartments can benefit from two types of insurance coverage.

If the entire building is covered under a Master Policy that includes Structure and Common Areas, apartment owners should get a Content Coverage policy for themselves. This is because if the building suffers damage, their apartment might become uninhabitable.

If the building is not covered under a Master Policy, it is better for the apartment owners to get a Comprehensive Cover that protects both Structure and Content. This way, both the house and its contents are safe from damages.