Insurers expect claims worth nearly ₹5,000 crore from Gujarat due to recent flooding incidents, according to a recent Business Standard report. Property losses are likely to account for a large share of these claims, highlighting the importance of understanding insurance policy coverage for homeowners affected by flooding. The basis on which insurers settle claims depends on the coverage purchased and policy wording, with many property insurance policies settling building claims on a reinstatement value basis.
Homeowners insurance typically does not reimburse the cost of installing an EV charger because the project is voluntary and planned, as reported by Freeway. Insurance is designed primarily to respond to sudden, accidental losses, not to pay for home improvements. However, fire and lightning damage to EV chargers may be covered depending on policy terms, with coverage depending on how the charger is classified, your deductible, and applicable exclusions. A hardwired charger in an attached garage may be treated as dwelling coverage, while a charger in a detached garage falls under other-structures coverage with separate limits and location rules.
Home insurance policies may cover buildings, household contents, or both, with building-only policies not covering damage to household contents. According to Narendra Bharindwal, president of Insurance Brokers Association of India (IBAI), when both building and contents are insured, admissible losses to both may be considered subject to respective sums insured and policy conditions. Basements are generally excluded unless declared to the insurer upfront, and insurers may not pay claims if the insured home remains unoccupied for specified periods without notification. Standard homeowners policies contain exclusions that surprise many homeowners, with flood damage not covered and requiring separate policies through the National Flood Insurance Program (NFIP) or private insurers.
Policyholders should review sub-limits that cap maximum amounts for specific categories even when overall sum insured is higher. As reported by Ashwini Dubey, business head of home insurance at Policybazaar, jewellery may be covered only up to ₹5 lakh, ₹10 lakh, or ₹15 lakh, with policies imposing limits on single valuable items. Insurers may also cap debris removal costs at around 2% of total sum insured and impose relatively small limits on architect, engineer, and surveyor fees. High-value items like jewellery, precious metals, works of art, and collectables are subject to sub-limits and require separate declaration and valuation. The most common and costly mistake homeowners make is insuring their home for its market value rather than its rebuild cost - if your home would sell for $400,000 but cost $550,000 to rebuild, insuring for market value leaves a $150,000 gap.
Policyholders should inform insurers promptly after loss and take reasonable steps to prevent further damage, including switching off electricity and gas where possible. According to Shilpa Arora, co-founder and chief operating officer of Insurance Samadhan, policyholders should document damage thoroughly through photographs and videos immediately, as surveyors may reach locations only after a delay of around 24 hours during major floods. They should photograph soaked carpets, structural damage, and high-value items, and preserve damaged items until surveyor assessment and insurer approval. Policyholders should avoid false statements, inflated losses, or misrepresentation of damage causes, as these can result in claim rejection. The insurer will assign an adjuster to assess the damage and determine your payout based on your policy's terms, limits, and deductible.
