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Fire Insurance for Property

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  1. #1

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    Fire Insurance for Property

    I need to get fire insurance for a property. There is no mortgage.

    How do I decide on the 'sum assured'? I can find the valuation of the property from HSBC, but that valuation is high and related to how much to buy or sell the property and get a mortgage. The valuation for 'fire insurance' is related to the cost of rebuilding the property. Should I assume that it is the same as the property value?

    Thanks.

    dossier likes this.

  2. #2

    Try to search for a building guide which lists the cots to rebuild in HK per sqm / sqft and then work it out based on your home size.

    The total value of the home takes into consideration the land value / location etc not just the structure.

    drumbrake likes this.

  3. #3

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    Thanks.

    Another agent has come suggested something similar and come up with the cost of HK$3000 per square foot. This works out substantially less than the bank valuation.

    More generally, what is the opinion of home contents insurance / fire insurance in Hong Kong. I've had both in Hong Kong for years and never made a claim. The fire insurance was a requirement of the bank which financed the mortgage; once the mortgage finished, so did the fire insurance. I've still got contents insurance.

    I'm not totally sure on their difference. As far as I can see, Home Contents Insurance mainly covers "Accidental loss of/damage to household belongings" - so that would mean if their was a burst water pipe or fire, I would be covered - right? Or is it referring to theft?

    The fire insurance does specifically mention damage caused by fire and water damage from floods, water pipes and tanks.

    Are both needed, or does one make more sense to have than the other?


  4. #4

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    "Fire insurance" that I hold covers fire, typhoons, and other damage from natural disasters. For the cost of the premium, its really a no brainer. If you have a fire and only hold home contents insurance, it will replace your personal belongings, but the insurance will not cover reinstatement of your flat unless you have a fire insurance policy.

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  5. #5

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    Thanks.

    So - home insurance will replace the furniture.
    Fire insurance will pay for re-decoration.

    Is that correct?


  6. #6

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    usually the Incorporated owners of the building will take out fire insurance for the structure of the building.
    home content or home protection will cover everything within the unit including furniture and decoration.

    i dont know how this works for village houses.


  7. #7

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    Building cost for high rise, with substantial quantity of work to do, may be around HK$3,000 per sq ft. However, a one unit job, removal of existing structure, definitely must be more than 3k per sq ft.

    I would also use your judgement. Are you in a village house, new high rise, old high rise with high risk businesses on G/F, or even storage facilities in the same building. tisk tisk

    If it is old/higher risk then cover the current value of the flat. If you are in a new building, cover your investment. If a village house, cover your investment or a couple million should be fine.


  8. #8

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    This topic has been on my mind as well actually, and I have finally gotten around to starting to investigate.

    I live in an apartment complex where the management company has two policies with AXA General Insurance HK:

    (1) "Property All Risks Insurance" for "Building and Contents (Common Areas and Facilities) for HKD14m - "Against all risks of accidental physical loss of or damage to the Property Insured subject to the terms, exceptions and conditions of the original Policy" and

    (2) "Public Liability Insurance" up to HKD40m for any one accident in the common areas.

    I have not arranged any policies directly myself, nor contents insurance, nor directly Fire Insurance.

    Let's suppose there is (unfortunately) a fire in my apartment:

    1) Under what, if any insurance, am I covered for damage to my apartment? I have no contents insurance, so presumably all the contents are not covered. But what about damage to the building itself? Does the existing "Property All Risks Insurance" just insure damage to the common areas, but not to my apartment / neighbouring apartments?

    2) Suppose a fire in my apartment causes the apartment above me to be entirely gutted in such a fire (sadly a common occurrence when fires in HK in apartment complexes spread). Under what insurance policy, if any, is damage to my neighbours apartment covered?

    I was particularly considering any fire / water damage: more so to neighbours rather than to my own apartment (e.g. if they sue me as a result of an accidental fire in my own apartment).

    Thoughts welcome on what coverage I need to arrange to protect my rear-end (PYA)- and any tips on how are most welcome.

    Last edited by dossier; 14-10-2016 at 03:10 PM. Reason: Typos

  9. #9

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    Original Post Deleted
    Thanks. I will get on this right away.

  10. #10

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    One small question that I am still confused about: Is Fire Insurance separate to Home Insurance in HK? Or generally part of Home Insurance

    https://kwiksure.com/blog/fire-insurance-in-hong-kong/

    Sorry - coming at this from a UK perspective, where separate "Fire Insurance" isn't really a product - I'm just familiar with the concept of buildings insurance and contents insurance, in relation to property (and maybe breakdown coverage for heating, blah blah etc.)

    Last edited by dossier; 14-10-2016 at 06:29 PM. Reason: typo

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