Cyclone Arnab highlights home and vehicle insurance gaps: Policybazaar

HYDERABAD: Cyclone Arnab’s landfall along the Andhra Pradesh and Yanam coasts has highlighted the need for homeowners and motorists to understand whether their insurance policies cover damage caused by extreme weather.

The India Meteorological Department said the storm crossed the coast early on October 28, bringing maximum sustained winds of 125–135 kmph, gusting to 150 kmph.

Commenting on the risks to property and vehicles, Amit Chhabra, Chief Business Officer–General Insurance at Policybazaar, said inadequate coverage could leave households facing substantial recovery expenses.

“The real gap is not just insurance penetration but awareness of what a policy actually covers,” Chhabra said in a statement.

He said home insurance can cover damage to a building and household belongings, depending on the coverage purchased and the applicable policy conditions.

For vehicles, comprehensive motor insurance or a standalone own-damage policy can provide protection against cyclone-related damage, subject to terms and exclusions. Mandatory third-party motor insurance, however, does not cover damage to the policyholder’s own vehicle, he said.

The distinction matters because holding a motor insurance policy does not necessarily mean that repairs to a cyclone-damaged vehicle will be covered. Similarly, homeowners need to establish whether their policy covers the building, its contents or both.

Chhabra urged homeowners and vehicle owners to review natural calamity coverage and understand exclusions before a disaster occurs.

“The right cover can help reduce out-of-pocket expenses and provide a stronger financial cushion during recovery,” he said.