Possible increase in premiums

In the last five years, there have been a number of rain-related calamities seen in the states of Assam, Kerala, Karnataka, Maharashtra, Bihar, Odisha, among others.

Previous experiences have insurance companies anticipating a larger than before number of claims.

The higher number of claims will mean increased cost of these companies, which brings us to a possible increase in premiums covering properties and vehicles from such events in the near future.

Further, as a principle rule, those that have made previous claims of insurance (any kind) are treated as being at higher risk of returning to make another claim and are therefore charged with a higher premium.

Do you need structure coverage?

If you live in a city, you are more likely to live in an apartment. These housing societies usually insure the building and flat owners do not need to purchase an insurance for the structure but just insure any valuable contents inside the flat. Make sure the insurance for the contents of the house covers repair costs.

If you live in an independent house structure, you need to get the whole house insured-both the structure and the contents.

You are required to take precautions as per the law

IMD (India Meteorological Department) had warned of the occurrence of Cyclone Fani, this year, following which insurance companies informed their customers of ways to protect their assets like cars or the house.

After the calamity, the insurance investigators will look for a way to reject your claim and by not taking precautions, you will give them a reason as the insurance law requires the asset owner to take steps to protect what the have insured.

Documents

After a calamity, it is highly unlikely that you will be able to recover insurance papers that you store inside your own house or car.

Ideally, a bank locker is the safest place to store all your important documents. You can also save these digitally in your online drive or over e-mail.