House Insurance Renewal Questions.

[carlyai]

We have a house in Pattaya city we rent out. The house insurance before was B5400  for house insurance of B4.3 million.

We have rented it out before and the insurance price was the same, but this year the price has jumped to B7000 odd for the same house value.

The insurance agent said the cost increase is incase a fire at our place causes the places alongside to catch fire.

Is this correct or should we change insurance agents.

We were thinking of increasing the insurance value to B5 Mil. as we have had some people interested in buying at B5 mil.

[PPGuy]

Does the insurance value include the value of the land? 

[yeahbutif]

Does your house insurance have to cover neighbors properties? Should they not have their own...

[nigelforbes]

House insurance should be based on the rebuild value of the house, not the value of the house and the land. Even if the house was destroyed, the land still has value. Rebuild value of the house is likely to be under 2 million, or thereabouts, even if you do have an offer of 5 million for the whole thing. 

 

As for the risk of burning down neighbouring properties, that's a 3 rd party liability issue that is unrelated to your house insurance. We have AXA  home insurance which covers 2 mill. rebuild cost and 5 mill. 3rd party liability. You can build a lot of house for 2 mill.

[Doctor Tom]

Get a new agent quote each year is my advice. Like all entities here, loyalty to one provider, or agent, is taken as weakness and eventually they try to rip you off.  Construction and repair companies are particularly probe to doing this, so are agents. 

[carlyai]

1 hour ago, PPGuy said:

Does the insurance value include the value of the land? 

No it's just the house.

[carlyai]

1 hour ago, nigelforbes said:

House insurance should be based on the rebuild value of the house, not the value of the house and the land. Even if the house was destroyed, the land still has value. Rebuild value of the house is likely to be under 2 million, or thereabouts, even if you do have an offer of 5 million for the whole thing. 

 

As for the risk of burning down neighbouring properties, that's a 3 rd party liability issue that is unrelated to your house insurance. We have AXA  home insurance which covers 2 mill. rebuild cost and 5 mill. 3rd party liability. You can build a lot of house for 2 mill.

What do you pay for your house and 3rd party insurance?

[nigelforbes]

38 minutes ago, carlyai said:

What do you pay for your house and 3rd party insurance?

Building and Contents, includes 3 rd party, is about 6,500 baht.

 

Take a look at Mr Prakan, his comparisons are pretty good and informative.

 

https://misterprakan.com/th/main?lg=en