Punjab Floods: Does Your Home Insurance Cover Flood Damage?

Punjab is reeling through devastating floods due to the swollen Sutlej, Beas, and Ravi rivers and seasonal rivulets, following heavy rainfall in their catchment areas across Himachal Pradesh and Jammu and Kashmir.

As per reports, the state is facing its worst floods since 1988. Over 1,400 villages have submerged.

The extensive damage has left communities struggling to cope with major property losses. In the aftermath, this could be an occasion for many to review their home insurance policies with respect to coverage against damages caused by floods.

In India, home insurance policies usually cover losses due to theft, fire and natural disasters like earthquakes and storms. But unless clearly stated in the policy, flood damage is usually not covered. Due to this, homeowners in flood-prone areas might not be compensated for flood-related damages unless they have chosen to buy add-on coverage. 

Homeowners must buy a separate flood insurance policy to guard against flood-related disasters. Damages caused by floods, rising water levels and other such water-related events are covered by those insurance policies. Homeowners may have to pay hefty out-of-pocket costs for repairs and replacements in the absence of this additional coverage.

• Structural damage: This includes repairs to your home’s foundation, walls and floors if they are damaged by floodwaters.

• Personal belongings: Your furniture, electronics, clothing and other personal items are protected from water damage.

• Basements and crawl spaces: Many policies cover flood damage to basements or crawl spaces, including appliances, HVAC systems and other essential equipment.

• Debris removal: Costs to clear mud, rubble, or debris left by flooding are usually included.

• Additional living expenses: If your home becomes uninhabitable while being repaired, flood insurance can help cover temporary living costs.

• Review your policy: Check your existing home insurance policy to understand its coverage and exclusions.

• Consult with experts: Reach out to your insurance provider to enquire about adding flood coverage to your policy.

• Document damages: In the event of a flood, promptly document all damages with photographs to ensure that the claims process becomes easy.

In conclusion, you need to remember that home insurance and flood coverage are not the same. Standard home insurance policies usually exclude flood damage. Homeowners in flood-prone areas should consider a separate flood insurance policy to fully protect their property.