Condominium Insurance

[Ungabunga]

I recently bought a studio in Jomtien Beach Condominium near Pattaya and I am about to take out an insurance policy for it.

As I understand, this will cover my room only, but what about the building as a whole, does each condominium building have insurance? for fire etc...? If so, how would I be able to check this out? My g/f asked at the office, but they didn't seem to know what we were looking for. I would be grateful for any advice, thanks

[pkrv]

This should be included as a part of your annual maintenance fee. Check out your contract the answer will be in there along with points on what happens if the building is mostly reduced to rubble.

[Jingthing]

Assuming there (hopefully) is some kind of building insurance, be aware that it probably won't be for anything near the replacement cost of a condo. For example, you spent 5 million for a condo, the insurance might cover 500K. Anyway, this is my impression of how things are usually done. People with more knowledge about this, please pipe in.

[Sulaphat]

The condominium juristic entity will likely have an insurance policy covering the building and the common facilities. You can usually get a copy of the policy by asking for one from the secretary (or other officer) of the juristic entity. It is not unusual for the juristic entity to have inadequate insurance coverage on the building. This is usually due to lack of understanding on their part rather than by intent. Sums insured need to be regularly updated to reflect increases in replacement cost, which may not always be done by the jursitic entity because doing so inevitably results in increases, albeit modest, to the annual premium.

The other issue is the fact that the replacement cost of the building and common facilities may be substantially lower than the market price of the units. To the best of my knowledge, there is no way in Thailand of insuring for the difference between what you paid for your unit and the amount of insurance proceeds you may receive in the event that the building is destroyed and the juristic entity apportions the claims proceeds of insurance to each unit's owner instead of rebuilding.

[Ungabunga]

I just got back from the managment office where I spoke to another person who this time understood what I was asking for. They told me 'yes' there is insurance in place but wouldn't (or couldn't) give me a copy of the insurance document. It just would have given me some peace of mind (however small) and looks like I'll perhaps have to accept this as it is for now. Meanhwile thanks alot for your kind assistance, very much appreciated.

[Irene]

I recently bought a studio in Jomtien Beach Condominium near Pattaya and I am about to take out an insurance policy for it.

As I understand, this will cover my room only, but what about the building as a whole, does each condominium building have insurance? for fire etc...? If so, how would I be able to check this out? My g/f asked at the office, but they didn't seem to know what we were looking for. I would be grateful for any advice, thanks

It is a common practice for the condo to be insured under the name of the juristic body of that condo at the level of replacement cost of the bare structure (excluding land price). A responsible management should be able to give you a copy of the insurance policy that covers fire and other risks. If there is any reluctance, then raise this question at the next meeting of the co-owners.

The risk that is normally excluded, if not asked for by the co-owners/management, is earthquake.

[quiksilva]

Raise the issue in the Annual General Meeting of your condo, as an owner you are entitled to play an active part in the management of your project.

At a minimum they should be covered for 'All Risks', and 'Personal Liability' insurance.