Earthquake in West Bengal: How home insurance can save you from financial ruin

In the early hours of 25 February 2025, a 5.1 magnitude earthquake struck the Bay of Bengal, with tremors felt in Kolkata and various parts of West Bengal, Odisha and nearby areas. While there have been no immediate reports of damage or casualties, the recent seismic event underscores the unpredictable nature of natural disasters and highlights the importance of safeguarding one's home against potential damages.

Home insurance plays a crucial role in providing financial protection against such unforeseen events. In this piece, let us understand how these policies work and what homeowners should consider when buying such policies. To protect your home from earthquakes and other natural disasters, one should consider a standard home insurance policy. The typically offers two primary coverages:

Building Cover: "This protects the physical structure of your home, including the walls, roof, foundation, and any permanently attached fixtures like plumbing and electrical wiring that may get damaged especially in case of an earthquake," said Vivek Chaturvedi, CMO and Head of Direct Sales, Go Digit General Insurance.

This cover also protects you from damages caused by a range of perils, such as fire as well. Severe earthquakes can damage electrical wiring and power lines, increasing the risk of fire post an earthquake. "Given India's seismic zones, earthquake coverage is a vital component of building insurance. It's crucial to understand the specific terms and conditions related to earthquake coverage, as some policies might have specific exclusions or limitations," said Chaturvedi.

Contents Cover: This protects your personal belongings inside your home, such as furniture, appliances, electronics, clothing, and other possessions. It covers these items against the same perils that the building cover protects against, including earthquakes, fire and other natural disasters. Imagine the cost of replacing everything you own. "A contents insurance cover provides a financial cushion to help you recover from such a significant loss. Like building cover, it's important to understand the specifics of contents coverage provided in your home insurance plan. One should read the limitations and exclusions in the policy and make sure it provides the best coverage to your valuable contents inside your home," said Chaturvedi.

However, to stay protected, homeowners should assess Sum Insured which would be adequate. Chaturvedi said, "One may consider additional add-ons such as Cover for Valuable Contents on Agreed Value Basis, Personal Accident Cover, Additional Living Expense Cover." Your home is likely your most valuable asset. Protecting it requires a thorough understanding of your home insurance policy. Carefully reviewing the document is essential to know exactly what's covered, what's excluded, and how to ensure you have adequate protection.