Natural disasters, euphemistically referred to as Acts of God, can strike any time anywhere in the world and one needs to be prepared for such a calamity even before it strikes. The aftermath of natural disasterssuch as earthquake, floods, storm, lightening, fire, etc. can be devastating and these calamities can leave behind horrendous trail of destruction and devastation. The loss of lives and damages to property caused by such natural calamities can be unimaginable.
However, one can minimise and mitigate the damages caused by natural disasters through insurance policies that offer cover for such losses. Such insurance policies include the following:
Life insurance: Life insurance policies, and specifically term insurance policies, offer compensation for loss of life of the insured due to any reason (excluding suicide). If the breadwinner of the family dies due to natural disaster, the insurance company will pay the policy amount to the dependents of the deceased.This would to some extentfinancially mitigate the loss of income on account of demise of the breadwinner.
Property insurance: The damages caused to the property and other belongings by natural disasters can devastate a survivor financially and emotionally. Property insurance protects the insured by offering insurance cover against all losses and damages caused by all kinds of natural disasters. The property may be a residential house or a commercial premise such as shop, office, showroom, factory, godown, etc.
Both these insurance policies help mitigate the havoc caused by natural disasters to some extent.