Kerala Floods: How To Protect Your Home?

 

The State of Kerala is under water. Floods have ravaged the State. More than 350 people have lost their lives with around 3 Lakh people in relief camps. Around 9,06,400 hectares worth of crops have been destroyed. Kerala has lost a staggering Rs 19,512 Crores to the floods. PM Narendra Modi has promised aid of Rs 500 Crores along with helicopters and boats for rescue efforts. The Prime Minister also took an aerial tour of the worst-affected areas.

The Chief Minister of Kerala, Pinarayi Vijayan, has said this is the worst flood in Kerala in over 100 years and is actively monitoring the situation. The Navy, Coast Guard and the National Disaster Relief Force are all engaged in rescue and relief operations.

Relief is pouring in from all over India. The Akshaya Patra foundation is providing cooked meals to flood affected people of the Alappuzha District. Akshaya Patra is giving breakfast, lunch and dinner to the people who have lost everything to floods, through Akshaya Patra meal delivery vans and boats.

The Punjab CM Captain Amarinder Singh has donated Rs 10 Crores for relief activities. This is in the form of MRE (Meal, Ready-to-Eat) and the defence forces will transport the relief material. The Indian Air Force (IAF) will transport biscuits, rusk, bottled water and milk powder to the flood affected residents of Kerala. The Harayana Government has announced Rs 10 Crore aid for flood-hit Kerala. Karnataka CM Kumaraswamy has announced a relief fund for the flood affected victims of Kerala.

In all this, just think of the Keralites who have lost their homes to the floods. Take a look at this figure. More than 75,000 houses have collapsed or been washed away in the floods in Kerala. Is there any way you can protect your home from floods? Want to make a donation to the Chief Minister’s Distress Relief Fund? Just click on Government Of Kerala Chief Minister’s Distress Relief Fund.

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Kerala Floods: How To Protect Your Home?

You have spent lakhs of rupees to construct or buy the dream home. Do you want to see it destroyed in a flood or a natural calamity and lose lakhs of rupees? Well, you can’t fight the forces of nature, but you definitely can protect your most important asset, Your Dream Home, from a natural calamity. Protect your wealth and home with a home insurance plan.

 

1. What is home insurance?

 

A basic home insurance plan is fire insurance cover that protects the structure of your house from fire and allied perils like floods, storms and lightening.

You must opt for a householder’s package policy (HPP) which not only protects the structure of your house, but also the contents of the house against burglary, damage and electrical and mechanical breakdown.

Don’t step out of your house without a home insurance plan.

 

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2.  What is market and reinstatement value in home insurance?

 

Yes, you have availed a householder’s package policy. But, is it job done? Is availing a householder’s package policy all you need to do? If you don’t pay attention to the householder’s package policy, you are in trouble. 

The value of your house comes from the cost of land (area where you have built your home). A house in Indiranagar in Bengaluru costs more than the house of same size in Madiwala.  The reason….Cost of land is higher in Indiranagar….It also        depends on the cost of construction and the locality. A house in a posh locality is far more costly than a house in poorer parts.

Your householder’s package policy covers only the cost of construction, making premiums on home insurance plans quite low. The cost of construction varies between cities but not too much. This is why you must know how an insurer arrives at the sum assured. There are 2 ways an insurer arrives at the sum assured:

 

• Market value basis: Market value is nothing but the cost of constructing your home which is destroyed in a flood or a natural calamity, after deducting depreciation. This means you don’t get the entire amount spent on constructing your home. Premium on market value based plans are quite cheap compared to reinstatement value.

 

• Reinstatement basis:  Insurers don’t deduct depreciation on reinstatement basis plans. If you avail a householders package plan on reinstatement basis, you get the actual amount spent on construction. Most insurers sell reinstatement basis plans, but do check before availing your householder’s package plan.

 

    SEE ALSO: Do Not Have Health Insurance Plan: Read This Book

 

3. How to file a home insurance claim?

 

• Go through the fine print of the home insurance plan and look for inclusions and exclusions. Know what is covered under the home insurance plan and what is not.
• Store all your bills and documents very carefully so that the home insurance claim is hassle free. Store copies online so that if documents are destroyed, you can easily make the claim.
• Make a list of all valuables and belongings while availing the home insurance plan. You can even click pictures or make videos of valuables and also the documents of purchase with serial numbers and store them in email or in a cloud based service.
• You need proof of the valuables and belongings lost in the flood and video evidence is handy when making a claim.
• Fill the online claim form with relevant details for easy claim processing. Follow up with the insurer to get the claim settled.

 

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