Climate change and changing insurance needs
Always factor in inflation in the current cost of treatment while determining the sum assured
The land subsidence at Joshimath has suddenly become the epicentre of climate change discussions. Hundreds of people have lost their homes and livelihoods. There is a looming question—are claims for houses destroyed by subsidence covered under insurance? Strangely, until the event, subsidence had never been discussed as a major risk for home insurance. Uttarakhand has in the past put the spotlight on other recurring natural catastrophes. We ought to pay attention to these catastrophes and assess the ways in which they could impact us. Additionally, we should be conscious of the fast pace of climate change, and consider related risks specific to our surrounding geography.