14 Nov, 2024 12:23

Does it Make Sense to Avail of Home Insurance in Delhi Considering the Recent Earthquake Tremors?

By Ritu Ferrao 04 Dec, 2023 04:25 2 mins read 183 views

Image Source : https://pixabay.com/photos/earthquake-rubble-laquila-collapse-1665870/

As the earthquake tremors shook Delhi-NCR recently, concerns about home insurance coverage in the region have arisen. This article delves into whether home insurance covers earthquakes in India and whether it's a worthwhile investment for Delhi residents, providing crucial insights for homeowners in the wake of these recent seismic events. Read on to know more.

I am writing to you today because I am concerned about the recent earthquakes in Nepal and the resultant tremors felt in Delhi. I am wondering whether or not I should take out home insurance as I have recently purchased a home in Delhi-NCR. I live in an apartment building, and I am not sure if home insurance would cover me in the event of an earthquake. The recent tremors have made me worry. I am also concerned about the cost of home insurance, and I am not sure if it would be worth it. What do you think? Should I take out home insurance?
– Karim Shah (Delhi)

Thank you for your question. I understand your concerns about earthquakes and home insurance.

Earthquakes are a natural disaster or 'an act of God' that can cause significant damage to property and infrastructure.

Home insurance in India typically does not cover earthquakes as they are considered a natural disaster and are generally excluded from standard policies. However, some insurance companies offer optional add-ons or standalone policies specifically for earthquake coverage. These policies may give you coverage for property damage due to earthquakes, but may also come with stricter terms and higher premiums. It's important to carefully review the policy terms and conditions in order to understand what is and is not covered.

Home insurance can give you financial protection in the event of an earthquake. It can cover the cost of repairing or rebuilding your home, as well as the cost of your personal belongings. It can also cover the cost of temporary accommodation if your home is uninhabitable.
The cost of home insurance will vary depending on a number of factors, including the value of your home, the location of your home, and the type of coverage you choose. However, it is important to remember that the cost of home insurance is much less than the cost of repairing or rebuilding your home after an earthquake.

In addition to financial protection, home insurance can also provide peace of mind. This is because you know that you are covered in the event of an earthquake can help you to feel more secure.

We would recommend that you consider taking out home insurance in Delhi. It is a worthwhile investment that can provide you with financial protection and peace of mind.

Here are some additional things to consider when choosing a home insurance policy:

The deductible is the amount you will have to pay from your pocket before your insurance company will start to pay for repairs. Choose a deductible that you can afford.

The coverage limits are the maximum amount of money that your insurance company will pay for repairs. Make sure that the coverage limits are enough to cover the cost of repairing or rebuilding your home.

The type of coverage is important. Make sure that your policy covers earthquakes as well as other natural disasters, such as floods and fires.