Invest Smart: Here's how to insure your car and home against damages due to natural calamities

The impact of climate change is becoming more and more pronounced. From unseasonal rains to severe storms and extreme weather conditions, the consequences are many.

Climate related disasters including cyclones can have a devastating impact. Cyclones such as the recent Cyclone Biparjoy can put several things including your car and house at risk. Depending on the extent of damage, the cost of repairs can be sky-high. In such cases, insurance can go a long way to help cover such costs.

In case of home insurance, the claim is admissible only when the natural calamity is declared one by the government, says certified financial planner, Nisha Sanghavi . A meteorological report along with newspaper cutting of the the incident occuring is required for the claim process, she adds.

For car insurance, one can opt for a comprehensive motor insurance policy, which covers damages during natural calamities including cyclones. To further enhance coverage, add-ons such as engine protection cover can be considered especially for those who are living in flood or cyclone prone areas.

While buying an insurance policy, one must always be aware of the fine print especially the exclusions.