Climate change and the need for home insurance

New Year’s Eve is a time for celebration, and just because you’re staying home doesn’t mean it has to be any less fun. There are countless ways to make the evening memorable, from hosting a cosy game night with friends to planning unique activities for everyone in the family.

The risks India faces

India is one of the world’s most disaster-hit countries.48 lakh Indians suffer losses in disasters each year, worth Rs. 64,000 crore in total. India is also the most flood-prone country.The Global Climate Risk Index 2018 lists India as the 6th most vulnerable nation to the impact of climate change, so these crises will only worsen in impact.

The problem of low insurance penetration

Yet India is also remarkably under-insured.Non-life insurance penetration is under 1% (and property insurance penetration is barely a tenth of that).The north India floods of 2013 caused damage worth Rs. 9,000 crore, of which only Rs. 3,800 crore was insured (these are all insured losses, of which insured property damage losses were a fraction).

The economical solution

Currently, the large uninsured base means people rely on government aid for rebuilding. UNISDR noted that India had nearly 20 major disasters in 2015, costing the government over Rs. 20,000 crore. Under the 14thFinance Commission, India pledged to invest around Rs. 58,000 crores on disaster management. It could be argued thatthe government could protect people more economically by subsidising home insurance instead.

TheNational Disaster Management Agency (NDMA) has recommended making property insurance mandatory for residential properties in urban areas. If the government is to subsidise home insurance, some options include a RERA-linked universal insurance scheme mandated for every new development. Alternatively, the government could work directly with insurers to subsidise affordable home insurance, with premiums collected alongside property tax, perhaps even funded through programmes like Smart Cities.

Assuaging fears

One reason for low penetration is that people fear the claims process in a crisis will be complicated, as infrastructure is damaged. However, with new operating procedures and technologies, insurers can quickly set up field offices in disaster-hit areas; claims can now be made by phone; and forms are stored digitally so that damaged documents don’t hold up claims. Drones allow quick damage assessment, and insurers may even relax some procedures to enable quick settlement. One way to streamline claims could be for compensation to be paid out as soon as an independent regulator declares an emergency, instead of a property-by-property survey.

By helping people lower costs and offering credible assurances about claims handling, insurers and the government could yet popularise home insurance, the potential solution to India’s growing climate risk.

Your home is a lifetime investment. It is where you and your loved ones feel safe. It is, thus, important to ensure the safety of your home against any incident or accident that can cause losses or destruction.A house fire accident isone of the most common causes for property destruction. Something as minor as an electric short-circuit can cause severe damage to your property. Repairing a house damaged due to fire can prove to be a huge, unexpected expense and can put a massive dent in your savings. Thus, it is necessary to take some necessary home fire prevention measures from the get go. Here are a few measures that you can take to keep your home and your family safe from fire accidents.

Safety in Fire - Tips & Tricks for Home Fire Safety

8 things you should do to ensure safety in fire-related incidents.

1. Install smoke detectors: The first rule for home fire safety is to install smoke detectors. Smoke detectors are a must in the kitchen as most home fires start there. However, the smart thing to do is to install them in every room of your home. The early warning system helps you to swing into action and save lives and property before it’s too late. You can also get all the smoke detectors wired together. This will ensure that if one alarm goes; others will go off as well, while alerting everyone in the house. This is especially important when a smoke detector goes off in the kitchen while everyone in the family is sleeping.

2. Test the smoke alarms regularly: Just as it is important to install the smoke detectors, it is equally crucial to check the smoke alarms regularly. A smoke alarm typically has a tiny button on it, which you need to press to test it. If the alarm beeps weakly, and the sound is not clear, it means that you need to change the batteries at the earliest. A non-working smoke alarm can prove to be incredibly hazardous and result in a tragedy as you would miss the signal for evacuation.

3. Get all the electrical cables checked: Another way to ensure fire precautions at home is to get all your electrical cables checked from time to time. Damaged wires and cords can cause a short circuit which is a potential fire hazard. Make sure no electrical appliances have loose wires and fraying cords. If you are using multiple extensions, remember to be careful.

4. Keep your stove clean: While we speak of home fire safety, it is essential to address the oven and stove in the kitchen. You stove does not randomly combust due to your cooking. It typically happens because of forgotten food particles on the burner, which can get hot and combust, if the stove isn’t cleaned well. Combustion can happen not only due to food particles but other random things around the stove area. For instance, if there’s a curtain hanging close to the stock, it can catch fire. Similarly, if you absent mindedly leave a cleaning towel or a recipe book on the burner, while it is still hot, it could result in a massive fire.

5. Invest in fire safety equipment: Besides smoke detectors, there are other types of fire safety equipment that can help you douse the fire and prevent it from causing severe damage. Portable fire extinguishers, fire blankets, fire sprinkler systems and fire hose reels are some of the safety equipment that you should have at home. It is also extremely important for you and your family members to know exactly which one to use when and how. Not knowing how to use basic home fire safety equipment can result in an accident.

6. Turn off your hair styling equipment in the bedroom or bathroom: People who use hairstyling equipment regularly, like hair dryers, hair straighteners and curling tongs, typically keep these things in their bedrooms or bathrooms. They may forget to turn off these devices, which can lead to a fire, and possible damage to the room where the equipment is stored. As a house fire safety measure, it is recommended that you not only switch off the hair styling equipment, but also detach it from the socket completely after use.

7. Create an escape plan: Have a fire-exit plan and practice mock drills with your entire family including children and elderly. Ensure all the exits are clear all the time. Everyone in the family should know where to find the keys in case you have to evacuate the house in a fire-related emergency. Mock drills can take your family’s preparedness a notch higher. Make sure children are aware of all the exits. Preparedness is essential to keep your home safe from any unfortunate turn of events.

8. Check the necessary switches before leaving your home:The simplest of all house fire prevention tips is to check all the necessary switches before leaving the house. For instance, always ensure the water geyser is switched off. Turn off the gas cylinder and switch off the microwave. This way, you are protecting your house from any hazardous accidents in your absence.

A house fire is every family’s worst nightmare but with better planning, it doesn’t have to end in a tragedy. The best course of home fire prevention is investing in an all-encompassing home insurance policy. Having a home insurance policy can protect yours and your family’s financial future in case something unfortunate, such as an accidental fire, should happen.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

As Indians, we love gold. Gold symbolizes luck and prosperity, and we typically tend to buy it during festivals. However, the most auspicious day to buy gold is Dhanteras. Apart from being the first day of Diwali, Dhanteras is when people line up at jewellery shops to buy gold ornaments, coins, etc. While gold is an excellent investment, storing it safely is incredibly vital. Let’s understand how gold connects to Dhanteras and the many ways to safeguard your gold, including insuring it.

Astrologers predicted a serpent would bite and kill King Hima’s son at the age of 16. On the eve of his 16th birthday, King Hima’s son and his new bride hatched a plan to lay out all the ornaments and gold at the entrance of their sleeping chamber and block it. The couple stayed up all night, narrated stories and sang songs. When the serpent (an incarnation of the Hindu God of death – Yama) slithered in, it was blinded and dazzled by the jewels, gold, and stories. When dawn broke, it slithered away silently, sparing the young prince’s life.

Consider these tips to store your gold safely.

• Use a safe: Most wardrobes are equipped with safe boxes. Ensure you always keep your gold in a safe. You can purchase fireproof and waterproof safes for additional security and have them custom fit in your wardrobes. You can also purchase safe boxes that open only with biometrics or special passcodes.

• Keep it discreet: Be careful and vigilant when removing your gold from your safe. Avoid taking it out it in front of strangers or people you do not know or trust. Also, do not advertise that you have gold at home.

• Diversify: Avoid storing all your gold in one place. Find different not–too–obvious areas in your house to store the gold. Just ensure you remember where all the gold–hiding spots are and keep your confidant informed.

• Think like a thief: To know whether your hiding spot is clever enough, think how a desperate burglar would scan your home. Also, calculate how long it will take them to get to the gold.

• Use camouflage: If a bulky safe is inaccessible, use hard–to–move objects in your home to store your precious metals. They can be flowerpots or unused pipelines – essentially places that do not draw a burglar’s attention.

• Consider third–party storage facilities: It is always a good idea to have some gold at your disposal, but it is even better to store your gold safely away from home. For instance, you can keep your gold in safe deposit lockers offered by banks.

Natural calamities and human–made incidents are unpredictable, and your home and its contents may suffer collateral damage. However, you can get financial support for your home against such disasters with home insurance. A home insurance policy allows you to insure your valuables – jewellery, art, paintings, and other valuables. The insurer evaluates the valuables to determine the sum insured.

This Dhanteras, ensure you protect your gold, jewels, and other valuables by investing in home insurance.