House Insurance

[pontious]

We move into a new house in early December.

The house cost Baht 5,000,000 ( does not include the land price)

I obviously want to insure the property.

Of we went to a broker. I thought we should insure the house for B5m.

They said no problem 5m will be ---baht.

If ( we hope not ) the house burns down will the insurance pay up ( or thereabouts ) 5m to rebuild it?

Answer - No, they will pay 6000 to 10000 per sq metre depending on the DOI rates

So assuming the rate is in the middle (8000bth per sq metre) my house is 242 sq m I would get back ( or the maximum they will pay to rebuild is Baht 1,936,000- answer - yes that is correct.

So why whould I pay a premium of --- baht for 5m when I would only get the value of B1,936,000

Answer - it is up to you.

So if the maximum they will pay in the event of a rebuild is B1936000 why dont I just insure it for that ammount- answer - you can no problem.

for thaivisa - does all that make sense? You say in your FAQ the DOI is 10000 per sq.m -can that figure change?

If as you suggest most expat homes are worth B20000 per sq,m - how do you achieve that if the max is set by the DOI?

[ThaivisaInsurance]

Understand you wish to insure your house for 5m Baht i.e. 20k Baht per m2.

Please ask your Broker for a quotation for an “All Risks” building cover. If the insurance company accepts your application on this price then that is what they will pay out on a total loss. If the company feels you are over insuring they may well ask for documentation/photos i.e. what type and where did you get your PVC windows for example.

The D.O.I. or as it’s now know the Office of the Insurance Commission (OIC) – don’t you just love that – does indeed have tables for different types of structures and build quality but they are guides.

[pontious]

Understand you wish to insure your house for 5m Baht i.e. 20k Baht per m2.

Please ask your Broker for a quotation for an “All Risks” building cover. If the insurance company accepts your application on this price then that is what they will pay out on a total loss. If the company feels you are over insuring they may well ask for documentation/photos i.e. what type and where did you get your PVC windows for example.

The D.O.I. or as it’s now know the Office of the Insurance Commission (OIC) – don’t you just love that – does indeed have tables for different types of structures and build quality but they are guides.

Thank you for your very prompt reply.

On my example above is my broker correct i.e if I did insure for 5m and the OIC table says it is 8000 per sqm today

I would only receive B1.9 or thereabouts?

I would be paying a premium for 5m that was not achievable in the event of a disaster.

In my expereience guides become tablets of stone if it saves insurance companies money.

Thanks

P

[ThaivisaInsurance]

For your example all I can say is he maybe correct, although I cannot understand why without talking to the insurance company he is recommending (?)

As in my previous reply, if you go with a large/well know company and they accept your property on an “All Risks” basis then you will be paid out in full – up to the sum insured.

The problem is we all (myself included) want the cheapest possible premium but unfortunately, as in any walk of life, you only ‘get what you pay for’.

As an example, a top insurance company offering you an “All Risks” policy would charge 9,884 baht per year for 5m Baht of cover but other companies with a very much cut-down policy can offer premiums half of that.

One point we would make is that as a client you should ask the Broker if he is in fact a Broker – ask for their number and you can check – or just a simple agent.

[jimmym40]

Just want to give you something to think about. Isn't your home building materials made mostly from CONCRETE?

If so, what is the chances of a total loss? Think of WHAT can burn? Wooden furniture, baseboards and light fixtures...

I myself wouldn't think of having insurance. Be careful if you want theft insurance. As far as I know it's not available. Try getting a theft policy - this is what you probably need the most.

If you do get theft insurance - you'll have to PROVE what you've lost and the value. Good Luck.

Our new house is almost 90 percent concrete prefab. Try asking for a "contents" only policy, and see what response you get.

Any others gone this route lately???

[Guest mascot]

It is surprising what will burn in a concrete house, in our moo barn, a 2 storey 200 m house had an upstairs only fire (chang mai lamp overheated and set fire to the wooden floring. The house is still there but damage bill was 500,000 to repair upstairs and unfortunately no insurance.

The way electric wiring is done in thailand, fire insurance is worth it. We pay about 5000 for about 250 sq metres in the Bang Khae area.