Home insurance claims: Begin repairs only after surveyor's inspection

Non-disclosure of property extensions, late intimation, and incomplete paperwork may reduce or void claims

Recent floods have destroyed homes in several states, including Uttarakhand, Himachal Pradesh, and Madhya Pradesh. Here is a guide for home insurance policyholders on making a claim for flood-related damage.

 

Initial steps 

Evacuate if required and switch off electricity to prevent hazards. “Call the insurer’s toll-free number or use their app or website. Early notification helps to avoid disputes,” says Arun Ramamurthy, author of Unlock the Power of Your Credit Score.

 

Record the claim reference number and take clear photographs and videos of damaged areas, assets, and water levels.

 

“To submit your insurance claim, include old pictures of the house and new pictures and videos from all sides that clearly show the damage caused by the natural calamity,” says Shilpa Arora, co-founder and chief operating officer, Insurance Samadhan.

 

If insurance papers are lost, insurers can retrieve policies using the registered contact details associated with your account. Provide identity and address proof. “If purchase bills or invoices are unavailable, submit a written declaration with supporting photos of the damaged items. Some insurers accept alternative proofs like photos of the items,” says Ramamurthy.

 

“Always have key documents in digital form as those will have negligible chances of getting destroyed in a flood, compared to a hard copy,” says Shashi Kant Dahuja, executive director and chief underwriting officer, Shriram General Insurance.

 

Site inspection 

A site inspection by the insurer’s surveyor is usually mandatory, especially for large claims. “Do not make any changes or remove any item until the surveyor visit is completed,” says Shankar Ram Annur, senior vice-president, Anand Rathi Insurance Brokers. Only carry out temporary repairs to prevent further damage.

 

Settlement timeline 

If the policy is on a reinstatement basis, restoration needs to be done, and bills and invoices provided before the claim can be settled. “Sometimes the claim is settled on market value or depreciated value basis. This is faster and can be done within a month,” says Hari Radhakrishnan, expert, Insurance Brokers Association of India (IBAI).

 

Be aware of exclusions 

Bharat Griha Raksha, the standard home insurance policy, includes flood and inundation cover. However, many things are not covered by home insurance. “Loss or damage to bullion or unset precious stones, manuscripts, securities, coins, paper money, cheques, vehicles, and explosive substances is not covered, unless expressly stated in the policy,” says Dahuja.

 

Consequential indirect loss and wilful damage are not covered. Radhakrishnan adds that the premises must be residential and the customer should have ownership or title.

 

There is no cap on payouts. “The maximum amount payable depends on the policy sum insured, and specific limits for flood or natural calamity coverage mentioned in the policy terms,” says Arora. Sub-limits, deductibles, and exclusions can affect the payout.

 

Mistakes to avoid 

Several mistakes on the homeowner’s part can affect claims. “Many homeowners fail to disclose modifications, like extensions to the property. They also delay intimation, or submit incomplete documentation,” says Arora.

 

Annur informs that keeping hazardous materials in the house can result in claim rejection.

 

If insurer rejects claim 

If an insurer rejects a flood damage claim, Annur suggests approaching the insurer’s grievance cell first. Provide proof to support why you are contesting the rejection.

 

You can also file a complaint on Bima Bharosa, the Insurance Regulatory and Development Authority of India’s (Irdai) portal. “If the matter remains unresolved, approach the insurance ombudsman or a court, depending on the claim amount. The ombudsman only handles claims up to ₹50 lakh,” says Arora.

 

Documents required for making a claim

 

·       Duly filled claim form

 

·       Policy document or policy number.

 

·       Evidence of damage, such as photos, videos, and a brief narration of the loss

 

·       Proof of ownership of the property (sale deed, utility bills, etc.) or rent agreement

 

·       Inventory of damaged items with repair estimates, valuations, bills, and invoices  The writer is a Mumbai-based independent journalist