The season of monsoon can mean something different to every person living in different corners of the world. Sometimes, rain can bring comforting relief from the scorching heat, giving someone a cosy day where they can drink something warm and enjoy the drizzle. But when rain keeps mercilessly pouring, it can turn the streets into rivers, causing landslides and bringing life to a standstill.

This isn't just an inconvenience; it’s a nightmare for many. The 2023 North India floods taught us how devastatingly destructive rains can be, which made us realise the importance of insurance coverage to protect against the financial fallout of such natural disasters.

So, let’s explore what kinds of insurance are available to tackle the issues caused by rain and how these insurance can be your lifeline during difficult times.

When the rains come down hard, having the right insurance cover can save you from stress and financial trouble. Different types of insurance can protect you against the various damages caused by rain, ensuring you have a safety net to fall back on. Insurance coverage can make a difference during such times, whether it’s your home, car, or health.

In July 2023, North India was hit by some of the worst rains in decades. Punjab, Haryana, Chandigarh, Himachal Pradesh, Uttarakhand, Jammu and Kashmir, Rajasthan, and Delhi were severely affected. The continuous downpour for over two weeks caused massive floods, washing away vehicles, roads, bridges, and homes and leaving behind a trail of destruction.

Thousands of people lost their homes and had to be moved to relief camps. The heavy rains caused loss of life and substantial financial losses, as public and private properties were damaged beyond repair. Essential services were disrupted, schools and offices were closed, and the whole region was chaotic.

Heavy rains can cause various types of damage, disrupting life in many ways. Let’s break down the different types of damage caused due to rain:

• Floods:

  Flooding is one of the most immediate and obvious effects of heavy rains. When water bodies overflow due to excessive rainfall, they flood the surrounding areas, causing extensive damage to homes, infrastructure, and crops and can even lead to loss of life and property.

• Landslides:

  In regions with hills or mountains, incessant rains can soak the soil and cause landslides. These landslides can destroy roads, buildings, and natural habitats, making areas inaccessible and dangerous.

• Soil Erosion:

  Heavy rains can wash away the fertile top layer of soil, especially in agricultural fields, leading to soil erosion. This reduces the soil’s productivity and can affect crop yields.

• Contamination of Water:

  When sewage systems overflow due to heavy rains, they can contaminate water bodies. This can pose serious health risks to people who rely on these water sources.

• Damage to Infrastructure:

  Roads, bridges, buildings, and other infrastructure can be severely damaged by floods, landslides, and soil erosion caused by heavy rains. Repairing this damage usually takes a long time and a significant amount of money.

• Disruption of Services:

  Heavy rains can disrupt essential services like electricity, transportation, and communication. This disruption can bring everyday life to a standstill and make it difficult to get help or supplies.

• Diseases:

  Stagnant water left behind by floods can become a breeding ground for mosquitoes and other pests, leading to an increase in water-borne and vector-borne diseases.

Having insurance coverage is like having a safety net. It helps you manage the financial risks and provides a sense of security and stability in case something unfortunate happens.

An unexpected crisis can cause severe financial strain and emotional distress without insurance. Whether it’s damage to your home, your car, or a medical emergency, insurance coverage can help you handle unexpected expenses and give you peace of mind. So, if you’re still on the fence about getting insurance, think about the peace of mind and financial security it offers.

Different types of insurance can help protect you from the financial impact of rain-related damage.

1. Home Insurance:

   A good home insurance policy can cover damage to the structure of your house and its contents caused by rain. This includes damage to walls, roofs, floors, and personal belongings.

   For instance, SBI General Insurance’s Griha Raksha Plus policy offers comprehensive coverage for your home’s structure and contents, an automatic increase in the sum insured, and long policy durations of up to 20 years. It also offers various optional covers like personal accident cover, valuable contents cover, and temporary resettlement expenses.

2. Renters Insurance:

   If you rent a place, your landlord’s home insurance won’t cover your personal belongings. You’ll need renters insurance to protect your stuff from rain-related damage. This policy covers damage to your personal property and ensures you don’t have to bear the financial burden alone.

3. Flood Insurance:

   While standard home insurance policies usually don’t cover flood damage, you can add flood insurance to your existing policy. This is a must-have if you live in an area prone to flooding. Flood insurance can cover repairing or replacing your home and belongings damaged by floods.

4. Motor Insurance:

   A comprehensive motor insurance policy can cover damage to your vehicle caused by natural calamities like floods and heavy rains.

   For example, SBI General Insurance’s Private Car Insurance Policy - Package offers coverage against accidental damage, fire, explosion, and other natural calamities. It also includes third-party liability and personal accident coverage for the owner-driver, ensuring your vehicle and you are protected.

5. Health Insurance:

   During the rainy season, the risk of water-borne diseases and infections increases. A robust health insurance policy can help cover medical expenses if you need hospitalisation due to these illnesses.

   SBI General Insurance’s Arogya Supreme Health Insurance offers comprehensive coverage with 20 basic covers and 8 optional covers, including pre-and post-hospitalisation expenses, alternative treatments, and e-opinion consultations which can make sure that you and your family are wholly protected.

There are a few things you can remember to make sure that you have adequate financial protection:

1. Assess Your Requirements: Start by analysing and evaluating your needs. How much coverage do you need? What are your risks? For example, if you’re buying health insurance, consider your age, health condition, and the number of family members to find a plan that suits you.

2. Research and Compare Different Policies: Spend some time researching different insurance policies. Try to compare them based on what they cover, the benefits they provide, and the premiums. This can help you tremendously find the best deal that meets your requirements.

3. Determine the Sum Insured: Make sure the sum insured by your policy is sufficient to cover your costs. While a higher sum insured may cost more in premiums, it’s essential to have adequate protection during an emergency.

4. Review Inclusions and Exclusions: Carefully read the terms and conditions of the policy to understand what is covered and what is not. This helps you prevent any kind of surprises when you need to make a claim .

5. Consider the Deductibles: A deductible is the amount you need to pay before the insurance coverage kicks in. While a higher deductible may lower your premium, make sure you’re financially able to pay the deductible if you need to make a claim.

6. Check the Insurance Company’s Reputation: Research the insurance provider's reputation and financial stability. Check their claim settlement ratio and read reviews to see if they handle claims efficiently and fairly.

FAQs

Will My Home Insurance Policy Cover Damage Due to Floods?

Most standard home insurance policies do not cover flood damage. You must buy a separate flood insurance policy to protect against this. If you live in a flood-prone area, investing in flood insurance is wise to avoid financial hardship.

I tried to remove my car, but it was submerged in flood water. Will Insurance Pay for the Damage?

If your car is submerged in water, it’s best not to start the engine or move it until an insurer assesses the damage. Trying to move the car could lead to your claim being rejected. Take pictures of the vehicle and wait for the insurer’s instructions.

Conclusion:

Rains can bring about a lot of damage and disruption, as we’ve seen with the recent North India floods. Being prepared for such natural calamities can save you from a lot of financial stress. If you live in an area prone to heavy rains, it’s essential to have the right insurance coverage to protect yourself from the various types of damage that can occur. So, ensure you’re covered with a comprehensive insurance policy to protect your home, car, and health from the unpredictable fury of nature.

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.