Uttarkashi cloudburst: How to file a home insurance claim after a natural disaster?

On Tuesday, several people lost their lives and others were reported missing after a severe flash flood hit the Uttarkashi district of Uttarakhand. As flash floods and cloudbursts are becoming increasingly frequent every monsoon, home insurance has become inevitable, especially in geographically sensitive regions.

But the undesirably low penetration of home insurance in India is a matter of concern, says Ashwini Dubey, business head–home insurance at Policybazaar.com. “Most Indians remain uninsured against natural disasters, particularly in high-risk regions like Uttarkashi, which are prone to earthquakes, landslides, floods, and cloudbursts. The current state of home insurance coverage in India is alarming. Only less than 1% of households have any form of protection. This gap is even more pronounced in smaller towns, where many still perceive insurance as a product meant only for urban households or the wealthy,” he says.

The dismal numbers notwithstanding, those insured may find themselves in the dark while raising a home insurance claim.

Here are a few steps that will help you claim home insurance:

• Report the damage promptly: Contact your insurance company. "To do this, you can visit their website, call their support team, or reach out to your insurance agent," says Naval Goel of PolicyX.com.

• Report to local authorities: Visit your city office, disaster response team or police station to file a report. This can serve as strong proof and support your claim. For instance, the policyholder must notify the local fire brigade and police if there is damage caused by fire, explosion, implosion, or lightning. In cases of subsidence, landslide, or rockslide, they must inform the district administration.

• Document everything carefully: If possible, take photos of the damage. Make sure to include items such as broken walls, appliances, and soaked belongings. Try recording the amount of debris and the extent of flooding. "They must prove the occurrence of the event, and the extent of physical loss or damage suffered in full detail. For optional cover of personal accident, death certificates (wherever necessary) should also be submitted," says Dubey.

• Keep all necessary documents handy: Gather all the required documents to submit your claim. These typically include the home insurance policy, a completed claim form (if required), proof of property ownership, photos/videos of the damage, estimates for repair costs, and receipts for any emergency expenses.

• Allow the surveyor to do their work: You will be assigned a surveyor by your insurance company. "The surveyor will inspect the place and check for damages. He will also provide a claim estimate and inform you of the further steps. In case of third-party claims, he will examine the extent of policy coverage," Goel explains.

• Regular follow-up: Once you receive approval from the insurer, you will be given a claim number. Keep it safe. Use this for subsequent follow-ups. Stay in contact with your insurance provider or agent until the claim is settled.

When can you expect the settlement?

Typically, the process for insurance claim settlement ranges between 15 and 45 days in the best-case scenario. However, it can take longer if the documentation process is delayed. "The process begins with claim intimation, which usually takes 1-2 days. This is followed by the appointment of a surveyor, generally within 1-3 days. After the surveyor is appointed, survey completion and report preparation take about 7-15 days. Once the final survey report is submitted, the insurer usually settles the claim within 30 days," Dubey says. 

However, any delay in documentation or response at any stage may extend this overall timeline.