Insurance Cover against Tsunami

Deadly tsunamis in recent years – there was the tsunami that devastated the coastal areas of India in 2004 and the one that hit Japan in 2011 – must have left many homeowners wondering if their home insurance would cover tsunami damage. However, insurance companies are yet to provide a tsunami policy and the world over, the only option for tsunami insurance is through coverage provided for natural calamities like flood, landslide, earthquake and volcanic movement. The Indian peninsula is surrounded by water bodies on three sides; therefore, those staying in the coastal area in earthquake-vulnerable areas require tsunami insurance coverage. Coverage for tsunami insurance is not required if you are living in the inlands, comfortably far away from the sea.

Why no tsunami insurance cover

The world ‘tsunami’, a Japanese word, was coined by the scientific community to distinguish tsunami damage from other forms of flood and earthquake damage. Earthquakes, submarine landslides and volcanic eruptions are some of the sources of these killer waves. A characteristic that distinguishes tsunami from most other major hazards is that it does not occur from one cause. As some experts say, to define tsunami as a result of earthquake only is a narrow definition. While ‘earthquake’ is a narrow term to define the cause of tsunami, ‘earth movement’ is a broad term that includes earthquakes, landslides, rockslides, mudslides, subsidence, etc. Therefore, it is better to take insurance for both flood and earthquake.

Types of possible insurance coverage

In India, insurance for perils due to tsunami can be ensured through some coverage provided in home, auto, and fire and special peril insurance policies.