Pranav, your concerns are absolutely valid since the monsoons bring uncertain damages and devastation, which can cause a financial burden. To address your first concern about protecting your house, opt for a Home Insurance policy. This policy will provide overall financial protection to the entire structure of your home as well as the contents inside against manmade and natural calamities like cyclones, earthquakes, floods, fire, war, terrorism, etc.
If the owner of the house wants to protect the structure of the house, he /she can opt for a building-only cover, so the policyholder is protected against any unforeseen loss or damage to the house. Since you are a tenant, all the valuable assets in the home can be safeguarded through the contents-only cover. This covers all the belongings or content present in the house — such as furniture, appliances, jewellery, valuable items, etc. Home insurance also covers losses arising out of fire and allied perils including riots, malicious damage, floods, cyclones, and the like; it covers the breakdown of domestic appliances due to voltage fluctuations and accidental damages if opted under the policy. Therefore, opting for a contents-only cover will ensure that you are financially protected if anything happens to your home.
Although most general insurance companies offer home insurance policies, you can also opt for the Bharat Griha Raksha policy, a standardised home insurance policy envisaged by the IRDAI, which is offered by all the general insurers. The policy insures wide coverage for the physical structure of the house, including permanent fittings, and fixtures, along with the contents present in the home — such as jewellery, appliances, paintings, and other valuables, which are offered at affordable premiums.
Also read: Insurance query: Comprehensive covers in motor insurance fortifying against road risks
Your second worry is about your car being damaged during the monsoons since there is no covered parking and there is a chance of flooding. First of all, I would suggest that you try to park your car on slightly higher ground, or in an area that is not prone to inundation due to flooding. You should avoid using the vehicle when the water level covers about half of your wheel. Moving onto insurance, motor insurance normally includes third-party (TP) and own-damage (OD) coverage. You already have TP coverage, which is required by law. It protects the insured against legal, accidental, or financial loss if a third person is harmed by your car or third-party property is damaged. However, OD insurance is required to cover vehicle damage from accidents or natural disasters. Zero depreciation cover, engine protection cover, 24 * 7 roadside assistance, loss of personal belongings, tyre protection cover, and vehicle replacement cover are other good covers you should opt for.
Vehicle depreciation is often assessed when filing a claim for motor insurance. In this case, you should get a Zero Depreciation policy, which will pay out your claim regardless of the rate of depreciation. The depreciation rate is often specified in the policy wording. An engine protection cover is a must-have. This add-on will protect your car against eventualities like water ingression, and damage due to the hydrostatic lock. It also offers the cost of replacing or repairing the engine or its parts like the cylinder head, piston and connecting rod, amongst others. Another recommended add-on cover that you must have is 24*7 Roadside assistance cover which provides multiple benefits like towing facility, roadside assistance, taxi benefit, flat tyre, and others in case of any problem while you are driving and need special assistance. Loss of personal belongings add-on cover will cover losses caused due to theft or damage of your personal belonging from the insured vehicle. Tyre protection cover, especially important during the rains, covers the replacement of tyres due to accidental damage. It also pays for the labour charges involved in the replacement. Another important add-on cover that you must know is the vehicle replacement cover. If your vehicle meets with a total loss or is stolen or is in a condition beyond repair, the vehicle replacement add-on will help claim for the replacement of the insured vehicle.
Pranav, choosing a comprehensive insurance policy that contains TP cover, OD cover, and your chosen add-ons at the time of renewal that best suit your needs is highly recommended since they will give comprehensive financial protection for your car. Reach out to your insurer for the best product suited for you. Being secured will take care of financial exigencies, and will be a good step towards solving your worries.
The writer is MD & CEO, Bajaj Allianz General Insurance
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.