Rs 500 a year could save your home — Uttarkashi disaster shows under 1% are insured

The recent disaster in Uttarkashi has brought attention to the low penetration of home insurance in India. According to Policybazaar.com, fewer than 1% of Indian households have any form of home insurance, leaving a large number of homes vulnerable to natural calamities such as floods, earthquakes, and landslides.

Ashwini Dubey, Business Head, Home Insurance at Policybazaar.com, noted that high-risk regions like Uttarkashi remain largely uninsured despite recurring natural events.

“The recent Uttarkashi disaster is a grim reminder of how unpredictable nature can be, and how important it is for homeowners as well as those staying on rent to have adequate protection in place,” said Dubey.

“Home insurance can ease the burden by covering repairs to the building itself, replacement of damaged appliances and furniture, and even protection for valuables like jewellery if they’re included in your policy. These plans cover damage from natural disasters such as earthquakes, landslides, floods, and storms," he said.

Factors contributing to low insurance coverage

According to insights from Policybazaar, several reasons contribute to the limited uptake of home insurance:

Awareness gap: Many individuals are unaware that standard home insurance policies include coverage for natural disasters under STFI (Storm, Tempest, Flood, and Inundation).

Cost perception: While basic home insurance policies are available starting from ₹500 per year, they are often perceived as unaffordable.

Limited distribution in non-urban areas: Insurers typically do not promote such products actively in semi-urban or remote regions.

Absence of mandatory requirements: Unlike homes purchased with loans, self-constructed or older homes are usually not insured.

Claim process concerns: There is a common belief that insurance claims are complicated and time-consuming.

Standard home insurance policies in India generally cover:

Structural damage due to natural disasters

Damage or loss of household contents, including furniture and electronics

Optional add-ons that may cover valuables such as jewellery

Common exclusions include:

Cracks or settlement in new structures

Ground erosion or structural movement not caused by natural disasters

Defective construction or poor workmanship

Damage during construction or structural alteration

Claim process:

In the event of flood or disaster-related damage, the following steps are typically involved in filing a claim:

Intimate the insurer immediately via helpline, website, or local office, providing details such as policy number, incident description, and supporting photographs or videos.

Notify relevant authorities such as the district administration or fire department, depending on the nature of the incident.

Submit the claim form within 30 days of the loss, along with any other required documents, including receipts, repair estimates, and information about any overlapping insurance coverage.

Establish the loss by presenting documentation and proof of the event and its impact.

“In the aftermath of such events, one should act quickly: inform your insurer right away through their helpline, website, or your agent, and notify local authorities so their reports can back your claim,” Dubey added.

Settlement timelines

As per standard practices:

Claim intimation typically takes 1–2 days

Surveyor appointment is done within 1–3 days

Survey report is submitted within 7–15 days

Final claim settlement is generally completed within 30 days after the report submission.