Home Insurance

[mnbcm]

Is it a wise decision to get home insurance in Thailand? The insurance is under the owner of a detached single house. It's 16m above the nearest water so not worried about flood. The house is concrete with fireproof ceilings and insulation so not too worried about fire. I guess the main reason would be to protect from burglary. What kind of range in prices could I expect? Thanks for the thoughts.

[onnut]

My home insurance is about 13k a year. Covered for most things. That is with trafalgar insurance company. I live in a town house in a moo ban out bang-na way.

Insurance is pretty cheap over here and important to have.

[bikerlou47]

Mine is about 5000 a year I have a stand alone house,,,,,have had it for 4 years never used it dont know if its worth the paper it is written on but for 5000 I give it a chance!

My home insurance is about 13k a year. Covered for most things. That is with trafalgar insurance company. I live in a town house in a moo ban out bang-na way.

Insurance is pretty cheap over here and important to have.

[jimmym40]

I haven't checked that many companies, but information supplied to me was that the ins co's here just don't do "theft" packages. Fire insurance doesn't make sense to me unless you have a wooden house. You maybe could get "contents" coverage, but not sure that's even possible here.

So, I'm curious. Please read your policies and see what they say about "theft" and "contents" coverage.

Thanks.

[prakhonchai nick]

Fire Insurance on homes normally covers in addition storm damage (ie wind damage to roof and subsequent water damage) flood, burst pipes, impact from vehicles and earthquake. Even a concrete structure can have damage. Electrics could short circuit, and cause some fire damage,

Theft cover is not normally available separately.

Some of the figures quoted are absurdly high.

For a little over 2000bt a year if you have a concrete structure* you can insure for a value of 3,500,000 for fire and all the extras above AND theft.

** Homes that are 50% concrete 50% wood normally cot 50% more for cover.

I have arranged over for many farang friends.

PM me if you would like more info.

[phetaroi]

I haven't checked that many companies, but information supplied to me was that the ins co's here just don't do "theft" packages. Fire insurance doesn't make sense to me unless you have a wooden house. You maybe could get "contents" coverage, but not sure that's even possible here.

You may be correct for your policy and company, but in general I think you're wrong.

I have insurance with QBE and it covers certain kinds of thefts. Forcible entry in the home -- covered. Electronic equipment such as relatively expensive digital cameras and computer equipment -- covered with an extra rider. There are caveats, however. A theft of one of the cameras outside the home is not covered under most circumstances.

[mnbcm]

Thanks for the comments! What are some reputable company names I should be looking for?

[ThaivisaInsurance]

Thanks for the comments! What are some reputable company names I should be looking for?

As a Thai Visa member, the easiest way to have access to all the major (reputable) insurance companies is to go Here and ask for a quote

[DMCGARRY]

What about valuable items in the house such as

Jewellery (Lost or stolen)

Electrical Equipment (Short circuit or just not working Computers, TV's, Cameras etc...)

Cheers for any advice

[ThaivisaInsurance]

We can arrange cover for most things (including jewelry) but need proof and receipts.

Have just had a case from one of out customers who's house was hit by lightening and the insurance company paid out.

Fire : for those who doubt if fire cover is necessary - very few claims are submitted for damage by 'flames' however we do receive claims for damage by the smoke/soot that fires (even very small fires) in a house give off

[thaiericsweden]

For the cost of a few thousand Baht to cover a small house, home insurance is a prudent investment.

For many persons that own a house, the insurance policy covers their most significant investment.

For a few thousand Baht a year, you are covered for millions in potential losses.

If you are renting a house, ask the owner for a copy of their insurance policy.

If they say the insurance policy is with the bank or refuse to show you a copy of the policy, this means that they most probably have a mortgage with a bank.

The insurance policy will only be for fire insurance and the policy will only cover the amount of the loan.

This basically means the house is uninsured.

If you are negligent and deemed liable for any damages to the house (worst-case-scenario, the house is destroyed), the owner will expect to be compensated in full.

If you don't have any insurance, guess who is going to pay the bill???

Most insurance companies offer packaged policies to cover you from a variety of perils.

Some of the packages include cover against burglary.

Be warned, not all items are covered against burglary.

The majority of packaged insurance policies will have a list of items excluded from Burglary cover.

Very few insurance companies will cover some of these items if they are endorsed by the company and included in the insurance policy:

1. Cash money, Cheques, coins, bonds, securities, accounting books.

2. Credit cards, Bank cards.

3. Gold bullion, ornamental gold or precious metals and precious stones.

4. Bonds, Certificates, Title deeds.

5. Important documents, contracts, obligations, stamps, duty stamps.

6. Manuscripts, plans, drawings, designs, patterns, moulds or models.

7. Goods held in trust or on commission belonging to others.

8. Any antique or works of art.

9. Personal effects, watches, glasses, jewelry, Palm/Pocket PCs.

10. Explosives.

11. Notebook computers, cameras, video cameras (With a few insurance companies, this is the only category that you can purchase additional cover against burglary).

There are also two time limits stipulated by the Office of Insurance Commission that you should be aware of, these limits affects all house and condo insurance policies.

1. Time limit of 60 days if the house / condo are unoccupied or abandoned without someone to take care of the property. If you intend to leave your home unattended for over 60 consecutive days, the policy has to be endorsed by the insurance company to be valid. If you have a security guard service, or maid looking after the house, it is not considered abandoned and the policy will not lapse automatically.

2. Some insurance companies also have an additional abandoned/unoccupied time limit of 7 days for Burglary cover (this varies between companies). After 7 days, your house is still insured, but you have no Burglary cover.

If you intend to leave your house unattended for a length of time, make sure someone is looking after it. Don't expect to be covered for losses if you lock up and leave.

I have no idea on whether the various members have the correct level of insurance; only prices are mentioned (no values for the house). Be aware of the problems of under-insurance and over-insurance. Under-insurance will save you a minimal amount in annual premium expense but when it comes time to pay a major claim, your savings will be lost. The level of under-insurance will affect the amount paid by the insurance company and it could end up costing you the loss of millions. For example; if you insured your 20 million house for 10 million, you are considered only 50% insured. If your house has a claim for 4 million Baht, the insurance company will only pay 50% of 4 million.

Over-insurance is not so bad. By paying for too much insurance you are only increasing your premium expense. There is no benefit to paying for more insurance you need, because the insurance company will only pay the actual loss. For example, your 10 million house is insured for 20 million. If it is destroyed, you will only be compensated 10 million, even though you paid for 20 million cover.This problem occurs very often when an unskilled insurance agent or broker sells you insurance on the total purchase value of your house.

Edited July 28, 2010 by thaiericsweden