Home Insurance Cover Should Suffice to Rebuild Structure, Replace Contents

Recent earthquakes in the Delhi-National Capital Region (February 17) and in West Bengal (February 25) underscore the importance of buying home insurance.

- SANJAY KUMAR SINGH & KARTHIK JEROME

Recent earthquakes in the Delhi-National Capital Region (February 17) and in West Bengal (February 25) underscore the importance of buying home insurance. A home is often an individual's most significant asset.

"Unforeseen events like earthquakes, fires, and floods can cause devastating damage, possibly wiping out your financial security," says Dilip Baba, head-commercial & speciality underwriting, Go Digit General Insurance. Without insurance, homeowners have to bear the full financial burden of repairs and reconstruction.

What this policy covers

A home insurance policy covers damage from earthquakes, fires, explosions, floods, landslides, cyclones, storms, aircraft damage, and acts of terrorism. It protects both the structure of the house and its contents.

After a disaster, homeowners may need temporary accommodation. "Home insurance can cover relocation expenses after disasters if the policy includes a 'living expenses' add-on. It covers the costs of boarding, lodging, storage, and moving," says Baba.

Sum insured and payout