Monsoon damage on the rise: Why homeowners need to revisit their insurance cover now

Every year, the monsoon brings not just welcome relief from summer heat, but also a surge in home damage cases — from seepage and structural cracks to flooding and landslides. In recent weeks, torrential rains, cloudbursts, and mudslides have devastated several parts of the country, destroying homes and damaging property worth crores. Yet, despite these recurring risks, home insurance penetration in India remains shockingly low — with only about 1% of homeowners adequately insured. Industry experts are warning that now is the time to secure or upgrade your home insurance cover to guard against seasonal perils.

Low coverage, high risk

“Home Insurance is just as critical as life or health insurance for overall financial stability,” says Shashi Kant Dahuja, Executive Director & Chief Underwriting Officer, Shriram General Insurance. He points out that policies like the Bharat Griha Raksha offer comprehensive protection against fire and natural calamities, including Storm, Tempest, Flood, and Inundation (STFI), in addition to earthquakes. This ensures both structural and content-related damages are covered — a crucial safety net during monsoon months. Unfortunately, most homeowners either underestimate the risk or delay policy renewals until after damage occurs, by which point it’s too late to claim.

What your policy should cover

According to Gisha George, President, Product & Underwriting, Commercial Lines & Reinsurance, Liberty General Insurance, flood protection is already embedded in broader home insurance products. “While there’s no standalone ‘flood-only’ policy, standard products like Bharat Griha Raksha provide cover for floods, storms, and cyclones. They protect both the building and its contents — with automatic content coverage of up to 20% of the building’s insured value. Policies can be bought annually or for up to 10 years,” she explains.

Premiums vary depending on factors like location, floor level, and construction type. For example, a ground-floor apartment in a flood-prone zone will attract a higher premium than a top-floor flat in a low-risk area.

Coverage options

Krishna Kumar Pathipaka, National Head – Property & Engineering Claims, Digit Insurance, outlines three main types of home insurance:

Building Cover: Protects the physical structure, including walls, roof, and permanent fixtures.

Contents Cover: Covers belongings like furniture, electronics, and appliances.

Comprehensive cover

Tenants can insure only their belongings, while property owners can cover both structure and contents. Custom policies exist for apartments, independent homes, and villas, making it possible to tailor coverage to occupancy type and risk level.

With urban flooding becoming more frequent, a robust policy is no longer optional — it’s a necessity. Without coverage, the cost of repairing structural damage and replacing waterlogged appliances can run into lakhs.

Add-ons for extra protection

To enhance your coverage, insurers recommend optional riders such as:

Valuable Contents Cover (Agreed Value Basis): For high-ticket items like jewellery or art.

Personal Accident Cover: Compensation for accidental injury or death due to insured events.

Loss of Rent / Alternative Accommodation: Helps cover temporary living costs if your home becomes uninhabitable.

Digit Insurance, for instance, offers the Digit Flexi Griha Raksha Policy, which allows policyholders to customise coverage with relevant add-ons.

Check the fine print

Experts stress the importance of reviewing your policy before monsoon sets in. This means confirming that flood and storm damage are covered, understanding exclusions, and ensuring the insured value matches the cost of rebuilding and replacing contents today, not at the time you bought the policy.

With climate change intensifying rainfall patterns, the financial impact of a single flood event can wipe out years of savings. A well-structured home insurance policy can be the difference between starting over debt-free and struggling under the burden of repairs.

In short, don’t wait for water to rise to your doorstep. renew, upgrade, or buy your policy now, while the skies are still (relatively) clear.