Before choosing home insurance, check reconstruction cost: Analysts

Only then can one arrive at an appropriate sum insured

The frequency of natural disasters has increased because of climate change. Just recently, hundreds lost their lives while properties worth crores were damaged by floods and landslides in Maharashtra and Goa.
 
There are insurance plans like home insurance that can reduce the financial impact of losses caused by calamities such as floods, cyclones, hurricanes, earthquakes, hailstorms, mudslides, among others.
 
These plans for home insurance are of three types: Those that cover the structure, the content, and comprehensive plans.
 
Building insurance

It covers the structure of the building or independent house (but not land) against fire, explosion,