In the early hours of February 25, 2025, a 5.1 magnitude earthquake struck the Bay of Bengal. Tremors were felt in Kolkata and various parts of West Bengal, Odisha, and surrounding areas. While there were no immediate reports of damage or casualties, this seismic event serves as a stark reminder of the unpredictable nature of natural disasters. It also highlights the importance of protecting one’s home from potential damage.
Home insurance offers critical financial protection against such unforeseen events. Let’s examine the workings of these policies and what homeowners should consider when purchasing them.
Understanding Home Insurance Policies
A standard home insurance policy is an essential step in safeguarding your property against earthquakes and other natural disasters. These policies typically provide two primary types of coverage:
*Building Cover: This protects the physical structure of your home, including the walls, roof, foundation, and permanently attached fixtures. These fixtures include plumbing and electrical wiring, which can sustain damage particularly during an earthquake. Vivek Chaturvedi, CMO and Head of Direct Sales at Go Digit General Insurance, pointed out, “This cover also protects you from damages caused by a range of perils, such as fire as well.” The risk of fire increases after an earthquake due to potential damage to electrical wiring and power lines.
Chaturvedi added, “Given India’s seismic zones, earthquake coverage is a vital component of building insurance. It’s crucial to understand the specific terms and conditions related to earthquake coverage, as some policies might have specific exclusions or limitations.”
*Contents Cover: This protects your personal belongings inside your home, including furniture, appliances, electronics, clothing, and other possessions. This coverage extends to the same types of perils as the building cover, including earthquakes, fire, and other natural disasters. “A contents insurance cover provides a financial cushion to help you recover from such a significant loss,” said Chaturvedi. He continued, “Like building cover, it’s important to understand the specifics of contents coverage provided in your home insurance plan. One should read the limitations and exclusions in the policy and make sure it provides the best coverage to your valuable contents inside your home.”
Important Considerations for Homeowners
To ensure adequate protection, homeowners must accurately assess the sum insured. “One may consider additional add-ons such as Cover for Valuable Contents on Agreed Value Basis, Personal Accident Cover, and Additional Living Expense Cover,” said Chaturvedi.
Your home is likely your most valuable asset. Protecting it requires a detailed understanding of your home insurance policy. Carefully reviewing the document is essential to know exactly what’s covered, what’s excluded, and how to ensure you have adequate protection.
