Bro, imagine this: Your Lucknow house gets flooded during heavy rains, or there’s a short circuit fire, or someone breaks in and takes your TV and gold chain. You think, “No problem, home insurance will handle it.” You call your agent, file the claim… and then boom — half the amount gets rejected or denied outright.
Sound familiar? Or scary? That’s the reality for many people in India right now in 2026. Home insurance sounds like a full safety net, but the fine print is brutal. Most policies cover a lot… but they don’t cover way more than you think.
Today, I’m breaking down the shocking truth about what your home insurance really covers (and what it shockingly doesn’t). This is based on standard policies from big players like SBI General, HDFC Ergo, Bajaj Allianz, ICICI Lombard, etc. — no sugarcoating.
Read this before you renew or buy — it could save you lakhs when disaster hits.
What Home Insurance Actually Covers (The Good Stuff)
Standard home insurance in India usually has two main parts: Building/Structure Cover (your walls, roof, floors) and Contents Cover (furniture, gadgets, clothes, jewellery).
Here are the common things that are covered (if you have the right add-ons):
- Fire and Explosions — One of the biggest covers. Short circuits, gas leaks, even neighbour’s fire spreading — usually covered under Standard Fire and Special Perils.
- Natural Disasters — Storm, cyclone, flood, lightning, earthquake (yes, even in UP seismic zones), tsunami, landslide. But wait… many basic policies exclude flood/earthquake by default — you need add-ons!
- Burglary, Theft, Housebreaking — Stolen laptop, jewellery, cash (up to limits), damaged doors/windows during break-in. Contents cover shines here.
- Riots, Strikes, Vandalism, Malicious Damage — Mob damage, political unrest — covered in most policies.
- Terrorism — Yes, damage from terrorist acts is often included now.
- Public Liability — If someone (visitor, delivery guy) gets injured on your property and sues you — legal costs + compensation covered.
- Temporary Accommodation / Loss of Rent — If your home becomes uninhabitable, some policies pay for hotel stay or lost rent (if you’re a landlord).
Pro tip: In 2026, with climate change making floods/cyclones worse, always add flood/earthquake cover — it’s cheap compared to rebuilding costs.
The Shocking Part: What Home Insurance DOESN’T Cover (The Hidden Traps)
This is where most people get burned. Agents rarely highlight these exclusions upfront.
Here are the biggest exclusions in almost every standard home insurance policy in India:
- Wear and Tear / Gradual Damage
Old paint peeling, leaking roof from age, rust on pipes, mould from poor ventilation — not covered. Insurance is for sudden events, not maintenance issues. If your house is falling apart slowly, fix it yourself. - Intentional Damage or Negligence
You (or family) deliberately damage something? Denied. Left windows open during storm and water floods in? Might be called negligence — claim rejected. Carelessness = no payout. - War, Nuclear Risks, Pollution
War, invasion, nuclear radiation, ionising radiation, chemical pollution — all excluded. (Rare, but if something crazy happens, you’re on your own.) - Earthquakes / Floods Without Add-Ons
Many basic policies exclude these! In Lucknow, where Yamuna flooding happens often, you need specific add-ons. Without them? Zero coverage for quake/flood damage. - Sewer Backup, Mould, Termites, Rodents
Water damage from blocked sewer? Mould growth? Termite eating your furniture? Usually not covered. Pest damage is considered maintenance. - Business Use or Commercial Activity
Running a shop/office from home? Or Airbnb rental? Standard home policy might not cover — treated as commercial risk. Get separate cover. - High-Value Items Without Declaration
Jewellery over ₹5–10 lakh, artwork, antiques — often need separate valuation/add-on. Otherwise, payout capped or denied. - Consequential Losses
Loss of income, market value drop, delay in repairs — not covered. Only direct damage. - Electrical/Mechanical Breakdown Without Fire
AC compressor fails? Fridge shorts without catching fire? Excluded unless you have add-on for electronics/appliances.
Real story from UP: Guy’s house flooded in 2025 monsoon. No flood add-on — claim rejected fully. Rebuilt from pocket. Don’t be that guy.
Quick Checklist Before Buying/Renewing Home Insurance in 2026
- Read the policy wordings — Not just brochure. Look for “exclusions” section.
- Add necessary covers — Flood, earthquake, burglary (especially in cities), valuable contents.
- Declare everything — Accurate home value, contents list — under-insure and face claim rejection.
- Check claim settlement ratio — Pick insurers with 95%+ (IRDAI data).
- Compare online — Policybazaar, insurer sites — premiums start from ₹3,000–8,000/year for ₹50 lakh cover (cheap for peace of mind).
- Review yearly — With inflation, rebuild costs rise — increase sum insured.
Bottom line
Home insurance is awesome for sudden disasters, but it’s not a magic fix-all. Knowing the shocking truths about what it covers (and doesn’t) makes you smarter, not scared.
Your home is probably your biggest asset — protect it right.
Got a home in Lucknow or UP? Facing specific risks like monsoon flooding? Drop your questions below — I’ll help brainstorm the best add-ons or insurers.
Stay safe, stay insured smartly! 🏠🔥