North India rain havoc: Here's how you can insure your car and home against rain related damages

Incessant rains have created havoc across the northern part of India, claiming more than 15 lives so far. The national capital Delhi recorded its highest ever rainfall, breaking a 40-year-old record. Meanwhile landslides in the hilly states of Himachal Pradesh and Uttarakhand have brought several parts of the states to a standstill.

Such situations can also put your car and home at risk. Depending on the extent of damage, the repair costs can put a huge dent in your pockets. However, having the right insurance protection can go a long way in helping you cover the costs.

Standard Fire & Special Perils policy

Even though India is a tropical country that faces high frequency of rains, there is no insurance that covers flood related damages explicitly. However, Insurance companies cover floods as part of the Standard Fire & Special Perils policy. Flood is named as a peril as a part of the larger STFI cover which also includes Storm, Tempest, Cyclone, Typhoon, Hurricane, Tornado and inundation.

This plan can be applied to buildings, Plant & Machinery, Stocks, Furniture, Fixtures & Fittings and other contents.

A specific rate is attriuted to STFI perils within the policy and the insured can decide whether they want to have the “STFI” peril included in their Fire or householders policy.

Home Insurance

For most people, buying a house is a dream come true but at the same time is an extremely expensive affair. And so, protecting your house against natural calamities with home insurance is a good idea.

Home insurance covers fire, perils such as cyclones, floods and earthquakes. It also covers accidents caused in your home or outside your home by you or a family member

One could buy an insurance plan that gives a 360 degree protection including both the external structure and internal content like appliances and furniture. Add-ons such as gadget repair, pest control and plumbing/carpentry can also be taken.

Meanwhile, owners should also be careful of contributory negligence as insurers can deny benefits.

Certified Financial Planner Nisha Sanghavi says that property owners should take care of the buildings in order to claim the insurance money. "Flood prone areas are low lying. Protective measures need to be taken. To claim home insurance, have protective walls so that water doesn't enter easily. Surveyors survey a region. Undertake loss prevention and minimizing measures as recommended so damage doesn't happen", she said.

A claim is admissible only when the natural calamity is a declared one by the government. A meteorological report along with newspaper cutting of the incident occurring is required for the claim process, explains Sanghvi.

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

Vehicle Insurance

Vehicles can get stuck in the floods causing extensive damage. However, a comprehensive policy that covers damage in the engine and/or its child parts due to water ingression and oil leakage is not available.

"To claim insurance parking shouldn't be in places where water would enter vehicle and especially under trees. Engine shouldn't be ignited if the car is submerged. Cut off the power or battery supply", said Nisha Sanghavi

The insurance can be made more effective with add-ons.

With the engine protector cover, any damage to the engine caused in the event of a hydrostatic lock, which occurs when water enters the vehicle’s air valve, resulting in engine blockage will be covered.

Road-side assistance cover is another helpful add-on that will help if one is stranded amid a heavy downpour. With this, one can avail access to prompt and professional towing services, effectively preventing any additional damage to the vehicle.

Financial assistance for both full labor charges and the costs associated with tire replacement can also be availed if Tyre protection add-on is obtained.

Accident Insurance

Taking a personal accident insurance policy can also be beneficial in the event of floods. These policies offer an insured amount if the person is disabled along with taking care of the hospital charges.

This policy includes all kinds of accidents ranging from road mishaps to electrocution due to a faulty appliance.