Does home insurance cover earthquakes? What you must know after Myanmar's disaster

Myanmar was struck by a powerful 7.7-magnitude earthquake, raising concerns about home insurance coverage. Experts explain how policies protect against natural disasters.

Myanmar on Friday (March 28) was rocked by a powerful 7.7-magnitude earthquake, followed by a strong aftershock measuring 6.8, according to the United States Geological Survey (USGS). The earthquake struck at approximately 12:50 pm local time (0620 GMT), causing significant damage across the country.

The epicenter was located 16 kilometers northwest of Sagaing at a depth of 10 kilometers. The tremors led to severe structural damage, with roads buckling in the capital city of Naypyidaw. The impact was also felt in neighboring countries, including India, China, and Thailand, raising concerns about the preparedness of urban infrastructure in seismic-prone regions.

Does home insurance cover earthquakes?

In the aftermath of such natural disasters, many homeowners are left wondering whether their insurance policies offer protection against earthquake damage.

Vivek Chaturvedi, Chief Marketing Officer and Head of Direct Sales at Go Digit General Insurance, clarified that standard home insurance policies typically provide coverage for natural disasters, including earthquakes. He highlighted that policies like 'Bharat Griha Raksha' include protection against various calamities such as earthquakes, landslides, floods, cyclones, storms, fires, explosions, and even acts of terrorism.

Chaturvedi also said that securing comprehensive coverage that not only protects the structure of the home but also covers household belongings in the event of damage.

Home loan insurance:

Atul Monga, CEO & Co-founder of BASIC Home Loan, stressed the significance of home loan insurance, particularly in earthquake-prone regions like Northern and Western India. He pointed out that many parts of India fall within high-risk seismic zones, making it crucial for homeowners to have adequate financial protection against property damage caused by earthquakes.

What buyers should know:

Before purchasing a home insurance policy, experts recommend carefully reviewing its terms and conditions. Chaturvedi advised homeowners to thoroughly understand the inclusions and exclusions in their policy to ensure they receive adequate coverage.