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How to pick an insurance policy to cut losses caused by natural calamities

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In case of natural disaster, home insurance is one of the most important insurance which can help people from tackling losses.

How to pick an insurance policy to cut losses caused by natural calamities
Natural disasters cause the loss of life and property in India almost every year. In case of natural disaster, home insurance is one of the most important insurance which can help people from tackling losses.
There are two types of home insurance: basic fire cover and comprehensive policy.
According to Inderneel Chatterjee, co-founder, RenewBuy.com, while the basic fire policy covers structure against fire, lightning, and flooding; some of the policies might not cover earthquakes.
"The comprehensive plan, on the other hand, not only covers structure against natural disaster but also the household items. It might also offer personal accident covers as an add-on. It may also help in covering damages caused to four-wheelers due to natural calamities," Chatterjee explains.
How to choose the right policy?
In order to purchase the right kind of policy, Chatterjee tells that people need to compare different plans offered by different companies so that they can choose their cover plan accordingly.
"It is important to do thorough research and understand all the benefits that would suit an individual and his/her family. It is equally important to take cover for property, health, accidents and motor. One needs to remember that one natural disaster can destroy everything in one go. The best way would be to get oneself insured as per the needs and requirements of self and family," Chatterjee suggests.
How to make such a claim?
The first and foremost thing is to put insurance documents in a safe place so that one can get them easily whenever needed.
"These days, people can also use digital lockers (on cloud-based platforms) to secure all their insurance documents. Property claims, many times get rejected due to non-disclosure or misrepresentation. Thus, it is important to study home insurance policy closely and become familiar with the risks covered and the exclusions," Chatterjee advises.
Additionally, people should list all the items in their house that have been subject to damage and keep it ready for the surveyor so that they can settle their claim faster with all the proofs of damage.
Is it possible to get a claim when a policy buyer goes missing after a calamity?
As per Chatterjee, with the motor or home insurance, the surveyor fulfills the claim by relying either on other documentary evidence of the existence or ownership like the sale deed in case of property or physical evidence at the scene to assess the loss.
In case of natural calamities, plane crashes or situations similar to those, Chatterjee says, a list of missing people who are presumed to have expired, is issued by the government.
"Most insurers take this list into consideration for the claim process of the policy buyer, in case he or she goes missing after the calamity," he adds.
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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