Natural disasters like floods emerge as top reason for buying home insurance in India: Survey

NEW DELHI: Natural disasters have emerged as the leading reason for buying home insurance in India, according to a recent survey conducted by PolicyBazaar.

The survey highlighted that 41 per cent of the respondents in last 6 months consider natural calamities such as floods, earthquakes, and storms as the primary reason to purchase home insurance. These events have made people realise the importance of securing their homes against unpredictable damages.

It stated, “Natural disasters (41 per cent) emerge as the leading consideration for buying home insurance”. The survey also found that ongoing home loans are the second biggest reason for buying home insurance.

Around 31 per cent of the respondents said they opted for insurance to protect their homes while repaying EMIs. Homeowners with active loans feel that having insurance is a financial safety net in case of any damage or loss.

The third key concern is theft or burglary, with 30 per cent of the respondents citing it as a reason for buying home insurance. This concern is especially common in urban and semi-urban areas, where the safety of household valuables is a top priority for residents.

Out of those who had shown interest in home insurance, 39 per cent went ahead and made the purchase. These were mostly homeowners living in standalone houses or housing societies. However, a significant 62 per cent of the interested group were either still exploring options or remained undecided about buying home insurance.

The survey also pointed out some major reasons why people delay or avoid buying home insurance. One of the top reasons is confusion over policy selection. It stated, “Around 27 per cent respondents find it difficult to understand and compare policies that lead difficulty in policy selection”.

Additionally, 23 per cent of the respondents felt that home insurance was not necessary. Many of them believed this because they had never experienced any loss or damage. Another 18 per cent of the respondents, who were initially interested in purchasing home insurance, dropped the idea due to a lack of urgency or clarity.

Overall, the survey highlighted a need for better awareness, simplified policy options, and clearer guidance to help people make informed decisions about home insurance. (ANI)