Nepal earthquake tragedy increases demand for home insurance

Last Updated: May 04, 2015 | 199 Views
Nepal tragedy has led to a rise in inquiries about Home insurance policies in India. Home Insurance Policies pay for damage to property and contents due to natural or man-made calamities, including earthquakes.

Home insurance, also commonly called homeowner's insurance, is a type of property insurance that covers a private residence. It is a comprehensive insurance policy that covers losses occurring to one's home (structure), its contents (electronic goods, furniture, etc), loss of other personal possessions such as jewelry, as well as liability insurance for accidents that may happen at the home.

"There is a spike in demand and this will stay for a short time," said Tapan Singhel, Managing Director & CEO of Bajaj Allianz General Insurance. "We have seen a similar spurt in the past — during the Jammu & Kashmir floods, the Uttarakhand floods and the Sikkim earthquake." 

Like all other insurance segments, the penetration of home insurance in India is also very low. The number of insured homes is estimated at 20 lakh with annual premiums adding up to Rs 2,500 crore. The recent tragedy has resulted in a temporary spike in inquiries home insurance and possibly sales too. But people should actively seek knowledge on insurance policies and purchase them before any loss occurs.