In conflict zones like border areas, where the risk of damage from war or military actions is higher, many homeowners wonder if their home insurance would cover damages caused by such events.
Unfortunately, the answer is not as straightforward as one might hope.
Why War-Related Claims Are Not Covered by Home Insurance
Home insurance policies in India typically have specific exclusions when it comes to war-related damages.
Most policies clearly state that damage caused by “war, foreign aggression, military action, or rebellion” is not covered. The definition of “war” used in these policies is quite broad and includes:
War or invasion
Foreign enemy activity
Declared or undeclared war-like situations
Civil war, rebellion, or military uprisings
Illegal occupation of power
By excluding such risks, insurance companies aim to avoid covering events that are unpredictable, widespread, and difficult to assess or insure.
The scale of damage caused by war often exceeds the scope of what a standard insurance policy is designed to cover.
What Are the Options for People Living in Border Areas?
Currently, there is no standard “war-risk underwriting” model for residential properties like there is in sectors such as aviation or marine insurance.
In aviation and marine insurance, companies often provide coverage for war risks because planes and ships are directly involved in military conflicts.
However, for real estate, offering coverage for war-related damages is impractical and not legally permitted under current insurance regulations.
Are Terrorist Attacks Covered?
While war-related damage is typically excluded, many home insurance policies offer an add-on for coverage against terrorism.
This means that if your home is damaged in a terrorist attack, you may be able to file a claim.
However, this is a nuanced area—if the damage is caused by a foreign military, the situation may be categorized as “war” rather than terrorism, which could lead to a claim being rejected.
Limited Coverage for Political Violence
Some insurance companies offer a separate add-on for incidents related to political violence, such as riots or civil commotion (e.g., looting or property destruction during protests).
This coverage is available in select policies, but it often comes with certain conditions. In the case of riots or civil unrest, the homeowner might need to provide:
Police FIR reports
Photos of the damage
Repair estimates and bills
Media evidence (newspapers or news channels) confirming the event
The policyholder will also need to verify the occurrence of the event through official government notifications or public records.
What Should Homeowners in Border Areas Do?
Since war-related damages are not covered by insurance policies, residents in border areas face a significant risk in the event of conflict. However, some steps can be taken to mitigate financial loss:
Review Your Policy: Carefully read your existing home insurance policy and see if it includes any optional covers like terrorism or political violence, and consider adding them if available.
Consult the Insurance Provider: Speak to your insurance provider to inquire if there are any special provisions for covering damages caused by war or military conflict. However, it’s unlikely that such coverage exists under standard home insurance policies.
Keep Documentation Safe: In case of damage from political violence, terrorism, or other insured risks, ensure you keep all important documents (e.g., police FIRs, repair bills, photos, and media evidence) safe. These will be required when filing a claim.
Look for Government Relief: In cases of large-scale damages due to war or conflict, the government may step in with financial assistance for relief and rehabilitation efforts.
Keep abreast of official announcements and be prepared to apply for any available aid.
