New Delhi: Natural calamities can strike anytime. While nobody can prevent such a disaster, we can reduce our liabilities arising out of these events by having the right insurance cover, say experts. Here are some insurance plans that will help you reduce your liability in case of natural calamities.
While life, health and auto insurances are the most common product bought in India, hardly people buy home insurance. Home policies automatically cover damages caused due to natural calamities such as cyclones, earthquakes and floods. These insurance products cover the structure, furniture and fittings inside the house. Worth mentioning here that within home insurance, you need to choose the right product as buying a comprehensive plan, as it is the case for car insurance, will be an added cost for you.
Most housing societies insure their building so as a flat owner you don't need to buy structure cover separately. So before buying home insurance, check if your society has a structure cover. Also, check if the policy bought by your housing society covers reconstruction cost and not only the depreciated value of the building. In case your builder has a structure cover that includes reconstruction cost, then you can go for cover for contents inside the flat. Worth mentioning here is that most societies settle for depreciated building value to keep premiums low.
Plan for contents
Typically insurers provide two types of cover for contents inside a flat-standard and detailed. Standard plans assume a standard set of assets while in case of detailed cover you need to give a list of every asset inside your house and take cover against them. By giving full details at the time of taking the policy, claim settlement becomes smoother. Standard plans do not cover costs related to repairs.
Go for replacement costs for contents
While buying cover for household assets make sure you opt for replacement cost, instead of depreciated value. Although this will cost you more it is advisable to buy such cover, say experts. in case of a claim, this cover will be helpful. For example, if a refrigerator bought three years ago is damaged due to flood and the repair cost is Rs 9,000, then the insurer will not pay you the entire amount if you do not opt for replacement cost.