During monsoon season, homeowners must carefully scrutinize their insurance policies to avoid unexpected exclusions. According to reports from Mint, seepage and dampness that build up gradually are usually excluded from coverage, with insurers only paying for sudden, accidental water ingress like wall collapses or floodwater entering during single events. As Santosh Sahoo, Vice President of Probus, explains, "Like every other insurance segment, here policyholders assume that their home insurance policy automatically covers damage caused through monsoon, but the fine print often says otherwise." Policyholders often skip add-on covers for basement flooding or landslide-prone areas, not realizing the base policy doesn't include them. Additionally, very few actually insure their boundary walls, gates, or external structures, which take significant damage during monsoons. If your roof has been leaking for weeks and finally damages your ceiling, that's often treated as 'wear and tear,' and not a valid claim.
A significant issue emerges when claims are filed, as reported by Mint. Many homeowners insure their houses for what they paid for them or current market value, when the policy should reflect what it would cost to rebuild the structure today. According to Venkatesh Naidu, CEO of BajajCapital Insurance Broking, "A very important issue only surfaces when a claim is actually filed." Insuring for less than rebuilding costs triggers the average clause, settling claims only in proportion to the sum insured. Every policy has deductibles that the policyholder must bear, and unless replacement-value cover is available under the policy, depreciation may apply to certain household contents, as noted by Rohit Khurana, Head - Claims and Inbound, InsuranceDekho. High-value belongings, such as jewellery, artwork, collectables, and expensive gadgets, often need to be specifically declared or insured separately.
When monsoon damage occurs, policyholders must immediately inform their insurance company and provide key details including policy number, date and cause of loss, photographs of damage, and supporting documents, as reported by Mint. "The moment the damage happens, you are supposed to call the insurance company immediately, preferably within 24-48 hours," says Santosh Sahoo, Vice President of Probus. "You are not supposed to touch or fix anything until it is documented." For larger claims, insurers usually depute a surveyor to physically inspect the property, which isn't optional for significant amounts. "It is advisable not to dispose of damaged items until the insurer or surveyor has completed the inspection unless they pose a safety hazard," advises Rohit Khurana, Head - Claims and Inbound, InsuranceDekho. Claims are typically assessed by an authorized surveyor from the insurance company's side, with no municipal authority or disaster management agency certification required before a claim can proceed.
According to Mint reports, well-documented claims with genuine surveyor assessments often see 70-90% of the assessed loss reimbursed, factoring in policy deductibles and depreciation clauses. However, "There's no fixed percentage, and honestly, anyone who gives you an exact number is guessing," says Santosh Sahoo, Vice President of Probus, when asked about expected settlement percentages. "It depends heavily on your sum insured, whether you've kept it updated with current repair and replacement costs, the type of damage, and how well it's documented." Most disappointment doesn't come from insurers rejecting claims outright; it comes from being underinsured, notes Venkatesh Naidu, CEO of BajajCapital Insurance Broking. Under-insurance remains the biggest reason people receive less than expected payouts, as the settlement percentage depends on sum insured levels and whether they've kept pace with current rebuilding costs.
As reported by Mint, industry experts emphasize the importance of careful policy review during monsoon season. "With increasingly severe monsoons, homeowners should pay close attention to policy exclusions, insured values and contents coverage rather than purchasing insurance based solely on premium," says Sonam Chandwani, Managing Partner, KS Legal & Associates. "Careful documentation and compliance with the claims process can significantly reduce the risk of disputes." "It's advisable not to dispose of damaged items until the insurer or surveyor has completed the inspection unless they pose a safety hazard," advises Rohit Khurana, Head - Claims and Inbound, InsuranceDekho. "It's also worth checking an insurer's claim settlement track record before you buy it, as it tells you a fair amount about what to expect," suggests Santosh Sahoo, Vice President of Probus. The insurance claims assessment remains between the policyholder and the insurer, with government relief packages operating on separate tracks.
