Must-have home insurance add-ons you should know about this monsoon

From flood damage to short-circuits, these benefits in your policy can save you lakhs in repair costs

Homeowners are constantly fixing damages caused by heavy rains, extreme heat and electricity fluctuations, making reading the terms of insurance a must.

 

Experts say a standard home insurance policy likely won’t cover risks like water seepage, short circuits, or structural weakening, making add-on covers essential for financial security.

 

Comprehensive cover

“Water is one of the most destructive forces a home can face, especially during monsoon,” said Adarsh Agarwal, appointed actuary at Digit General Insurance. Floods and heavy rains damage not just walls and foundations but also personal belongings like electronics and furniture. A villa damaged in the 2022 Bengaluru floods led to claims of around Rs 45 lakh, underscoring the financial risk, he said. 

Agarwal recommended choosing a policy that covers both building structure and contents of a home.

 

Standard insurance policies

According to Udayan Joshi, chief operating officer at SBI General Insurance, flood and cyclone-related damage is usually part of standard home insurance. However, exclusions remain.

 

Water seepage: Covered only if it arises from floods or storms, not from poor maintenance.

 

Short-circuits: Fire caused by short-circuits is covered, but damage to the equipment itself is excluded unless an “Electrical Installation Clause” add-on is purchased.

 

Structural damage: Covered if caused by insured perils, but not if it stems from wear and tear, poor workmanship, or defective design.

 

All-risk policies for broader protection

“Normal seepage due to dampness or poor maintenance is never covered,” said Ashwini Dubey, business head, home insurance, at Policybazaar.com. He advised homeowners with multiple appliances or expensive electronics to consider all-risk policies, which cover short-circuits, mechanical breakdowns, and theft.

 

Dubey cited as example Bajaj’s My Home Diamond all-risk plan, which offers a Rs 50 lakh sum insured for Rs 12,602 (one-time, five-year premium). “For just about Rs 2,520 a year, families can protect high-value electronics and belongings, making it a smart choice,” he said.

   

Add-ons worth considering

Experts highlighted useful add-ons such as: 

• Electrical installation cover protects equipment damaged by short circuits. 
• Rent for alternative accommodation pays for temporary housing if the home becomes uninhabitable. 
• Personal accident covers financial protection in case of injury or death on the property. 
• Valuable contents cover insures jewellery, art, or antiques at pre-agreed values.

 

What homeowners should do

Experts unanimously stressed the need to read policy documents carefully to understand coverage and exclusions. As Joshi put it, “Customers should always seek wider and comprehensive coverage so they get necessary financial assistance in the event of a loss.”