Cheap cover, costly neglect

Summary: Your home may be your biggest financial asset, but insuring it costs surprisingly little. Here's what home insurance covers, how much protection you need, and the common mistakes that can leave families exposed when disaster strikes.

Summary: Your home may be your biggest financial asset, but insuring it costs surprisingly little. Here's what home insurance covers, how much protection you need, and the common mistakes that can leave families exposed when disaster strikes. India’s geographical features and climatic conditions, similar to those of Southeast Asia, make it vulnerable to natural disasters. According to the National Disaster Management Authority (NDMA), about 60 per cent of the Indian landmass is prone to earthquakes, while 8 per cent of the country is susceptible to cyclones. Despite this, very few Indians cover their homes against damage or other perils. Premiums in the fire and allied perils segment of general insurance have grown very slowly. This is surprising because a house is perhaps the costliest asset owned by an average Indian family. They pour in crores to build their houses and lakhs to furnish them. While home insurance sales naturally increase after every catastrophe, once the disaster and its aftermath have faded from public memory, the coverage typically lapses. What needs to be covered Fortunately, home insurance is relatively inexpensive in India and is easy on the wallet. The essential covers your house needs cost less than Rs 3,000 a year. 

This article was originally published on August 01, 2026.