Earthquakes, floods & calamities: Why home insurance is essential to protect your assets - explained

TOI Business Desk / TIMESOFINDIA.COM / Jul 10, 2025, 20:24 IST

Comments

Text Size

Small
Medium
Large

Earthquakes, floods & calamities: Why home insurance is essential to protect your assets - explained

Home insurance: It costs very little to cover your most expensive asset against damage from manmade and natural disasters. (AI image)

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

Policy type	Insured value (Rs)	Annual premium (Rs	What is covered
Basic cover	₹20 Lakh	₹4,000 - ₹6,000	Covers house structure against fire, natural calamities and vandalism
Contents insurance	₹5 Lakh	₹4,000 - ₹5,000	Covers furniture, gadgets, personal belongings against damage and theft.
Comprehensive Coverage (House + Contents)	₹20 Lakh (house) + ₹5 lakh (Contents)	₹8,000 - ₹12,000	Covers both property and contents against natural and man-made calamities.
High-Risk Zone (Flood, Earthquake-Prone Areas)	₹50 Lakh	₹18,000 - ₹30,000	Higher premium for high-risk zones (earthquake-prone, coastal, flood-prone areas). Covers all major calamities.

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.

Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.

About the AuthorTOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

End of Article