Here's how to keep your finances afloat in flood season with the right insurance coverage

In the wake of increasingly common flash floods affecting regions like Himachal Pradesh, Uttarakhand, and parts of Delhi, experts highlight the importance of insuring properties, vehicles, and health to safeguard one's finances during a devastating situation. 

Amit Gupta, Managing Director, SAG Infotech, emphasises the significance of home insurance and explains coverage options.

Home insurance: 3 primary coverage options

• Building-only cover
• Content-only cover
• Comprehensive cover 

For the most full-spectrum protection, Gupta recommends a comprehensive cover, which safeguards both the building and its contents.

"When it comes to flood damage coverage, home insurance policies cover both partial and total damage. In the case of partial damage, the policy covers expenses related to damaged flooring, walls, paint, and contents," he said. "In the event of destruction caused by a flood, the insurance company will pay to rebuild the house up to the sum insured or the actual cost of reconstruction, excluding the cost of land," he added.

Several factors influence home insurance premiums, including the sum assured, coverage, and the consideration of add-on covers for additional protection. Add-ons such as coverage for portable electronics, new-for-old covers, and alternate accommodations should be considered for enhanced protection.

Different types of homeowners and tenants have varying home insurance requirements. Experts recommend individual homeowners opt for comprehensive coverage for both the building and the contents. For flats in apartments, housing societies should insure the structure, while flat owners can focus on insuring the contents. Tenants living in apartments or independent houses should consider "content-only" insurance to protect their belongings.

Car insurance

Amit Lakhotia, Founder & CEO, Park+, highlights an important aspect related to car insurance. 

"A standard car insurance policy does not cover flood damage to the engine. Therefore, those residing in flood-prone areas should opt for an add-on comprehensive insurance plan that includes engine protection cover," he said. Lakhotia advises against force starting a submerged car and suggests towing it to a dry area, taking it to a service centre immediately, and informing the insurer promptly to ensure a smoother claims process.

Health insurance

Kishor Hadke, Claims Manager at Loop, emphasises the role of health insurance during flood situations. Floods can lead to various health issues, including injuries, infections, and disease outbreaks, necessitating immediate medical attention. 

"Policyholders should understand the terms and conditions of their health insurance policy, particularly the coverage related to flood-induced health issues. Promptly notifying the insurance company about health issues and maintaining a record of medical reports and bills are essential for facilitating the claims process," Hadke said.

Experts recommend reviewing and updating health insurance coverage to avoid being under-insured during these situations. Additionally, having a health insurance policy that covers the treatment of post-flood health conditions can provide long-term protection. Being proactive in understanding policy details and preparing for such situations is crucial.