Natural Calamities Can Strike Anytime—Here’s Why You Need Earthquake Coverage In Your Home Insurance

A strong earthquake was felt in Delhi in the early hours of February 17 and the tremors were so strong that people rushed out to their homes in panic. Events like earthquakes can not only cause loss of lives, it can also cause severe property damage. In such instances, home insurance can be a saviour. 

Home Insurance Protects Against Earthquake 

A standard home insurance covers earthquake damage and no separate add-ons are required. However, in India, mainly due to the lack of awareness, the adoption of home insurance is very low, and very few people opt for home insurance to stay protected against natural and manmade perils. 

“But natural calamities like earthquakes strike without warning, which along with the loss of lives can cause massive damage to the home, resulting in a huge financial loss. Therefore it is strongly advised to buy comprehensive home insurance that offers coverage against perils like earthquakes and helps in taking away the financial burden of rebuilding homes during such uncertainties,” says Parthanil Ghosh, director and chief business officer, HDFC ERGO general insurance company. 

Home insurance protects against damage to home structures including compound/boundary walls, garages, and similar structures against damages caused by fire, earthquake, flood, and other natural disasters. Protection against damage to the contents of the house such as home appliances, furniture, fixtures, and other items is also provided. 

“Comprehensive home insurance plan also covers damage to both the structure and the contents of a house and is suitable for property owners who live in their own homes and are concerned about both the structure as well as its belongings,” says Nerukar. 

Get Yourself Protected 

First, evaluate whether you genuinely need earthquake insurance based on your location. “If you live in an earthquake-prone area, it is advisable to consider an earthquake insurance policy to protect yourself from the financial burdens that could arise in the event of a disaster more particularly in the western, northern, and central part of India,” says Gurdeep Singh Batra, head – property UW (E&S), risk engineering services and global accounts, Bajaj Allianz General Insurance. 

The geographical location of your home plays a significant role in determining the cost of your insurance. It is always prudent to cover the earthquake risk in India and advisable for coverage given the history of earthquakes in India which is on the rise. For commercial properties, the earthquake premium shall depend on the zone of an earthquake that your location is situated in as India is divided into different earthquake zones based on risk of earthquake. 

“Next, the property value you wish to insure is another crucial factor, higher-value properties typically incur higher insurance premiums.  In dwelling or residences, the standard coverage is now including earthquake cover in India if the insurance policy has opted and unless otherwise earthquake is opted out by the insured which is not advisable,” says Batra.