NEW DELHI: On the morning of July 10, an earthquake shook Delhi and its surrounding areas, reminding us how unpredictable and powerful natural calamities can be. While we can’t control when or where disasters strike, we do have the ability to safeguard what matters most—our homes and finances. In a world where the frequency of earthquakes, floods, and other natural disasters is on the rise, home insurance has never been more essential.Though home insurance covers what is possibly their costliest asset, very few Indians understand this and even fewer take steps to cover the risk. This is surprising, given that investors have poured in crores of rupees into building their houses and lakhs on furnishing them. But not many of them have taken enough steps to protect them against damage.The good news is that home insurance is as cheap as it is necessary. The annual premium of covering a house and its contents for Rs 20 lakh is only Rs 2,500-6,000 (see graphic). The cost is minuscule compared to the coverage it offers. Broken down to daily cost, it is less than half of what you pay for a cup of tea at a roadside vendor.How much does home insurance cost
When purchasing home insurance, ensure that the policy covers a broad spectrum of potential hazards, such as:
- Earthquakes and tremors: Even if your region isn’t typically earthquake-prone, the risk exists, as we saw in Delhi.
- Floods: The climate is changing. Heavy monsoon rains, rising river levels, or flash floods can cause significant damage to homes.
- Fire and lightning strikes: These often occur during storms and can destroy homes within moments.
- Landslides and storms: Particularly in hilly regions, landslides and strong storms can wreak havoc.
General insurance companies say they are flooded with queries about home insurance policies whenever a major calamity happens. Only some of the callers go ahead and actually buy a policy. But as experts say, insurance is best bought yesterday. No point in buying a policy after a disaster has struck.
