Floods can be devastating and I don’t need to tell you that. All you have to do is switch on your television set and you will see images which shock you. Buildings and cars submerged. Homes destroyed. People walking through flooded streets. Garbage strewn on the streets. And there’s more….The prices of food and all essential items is soaring. Prices of food and essential items has gone up… 3 times…5 times….
In these troubled times, there is one commodity which can save you and that is money. There is another… Insurance.
Your home is a precious resource. It could cost you lakhs of rupees to rebuild your home, if it is destroyed in a flood.
Our country has been struck by three major floods in the last three years. Floods in Uttarakhand in 2013, Kashmir in 2014 and now Chennai in 2015, devastated property worth crores of rupees. Countless homes were destroyed. In spite of this, home insurance is hardly availed by the citizens of our country.
People in India believe that Earthquakes, floods, cyclones and other natural calamities are rare. Why bother insuring my home and its contents?
If a natural calamity strikes, it will hit someone else. Somewhere else… I am immune to natural calamities is a popular belief among the citizens of our country.
Among all general insurance policies, home insurance is the cheapest. Surprise… Your home might be worth lakhs and crores of rupees. Your home insurance premium costs you just a few thousands. Can’t you spend a few thousands on the home insurance premium for your most costly asset?
The householders package plan, provides you both structural protection (pays you for the damage to the structure of the house) and also replaces contents of your home (consumer durables), damaged in a flood or a natural calamity.
And here’s the good news….It costs just a few thousand rupees.
Set up an emergency fund (keep money aside), to meet a medical or any other emergency, during the floods. Prices of food and other essentials increase during floods. Opportunists use this opportunity, to increase prices. Vegetables which costs just INR 30 would be sold for more than INR 100.
In a flood, your car gets submerged partially or fully. The car engine is heavily damaged. Engines cease to work if your car has been driven through a waterlogged area.
A regular auto insurance plan, does not cover this kind of damage to your car engine. If you want your car to be covered for engine damage in a flood, you have to opt for an additional rider. Riders are additional benefits you get for a slightly higher premium. You have to avail a rider called engine protector rider.
Your car may be fitted with an air conditioner or a music system. These are called car fittings. The air conditioner of your car may get damaged in a flood. You are compensated for this loss, only if the car AC is factory fitted. If your car does not have a factory fitted AC and you have installed an AC and a music system in your car, be sure to avail insurance for these fittings.
So are you prepared for a Chennai like flood? If not, get yourself and your belongings insured and set up an emergency fund, before it is too late.
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