Coverage Too Low On Home Insurance Quotes.

[srowndedbyh2o]

My wife just purchased a new townhouse in Bangkok. When she called around to get an insurance quote, none of the companies will insure the townhouse for cost.

The townhouse was Baht 1,400,000 new. Plus she added a finished kitchen and some other improvements. I’ve checked out some of the web sites such as www.thiwebsites.com/insurance.asp. and would like to stay with one of the “bigger” insurance companies, with a longer history of reliable service. So far the quotes she has received are:

Bangkok Insurance PCL: Baht 800,000.

AIA: Baht 500,000.

Siam Commercial Bank: Baht 1,200,000.

Dhipaya: Baht 800,000.

These are quotes for the townhouse AND all contents, e.g.. tv, fridge, furniture etc.

Is this typical for Thai insurance companies? I know that B1,400,000 is at the lower end of homes in Bangkok these days, but this represents a MAJOR expense for us, with a lifetime of savings, and it’s frightening not to have adequate insurance coverage.

Anyone care to share feedback on their insurance company experiences, or recommend a company that offers better coverage?

[autonomous_unit]

As crazy as it sounds, we also heard from multiple sources (including friends in the Thai insurance industry) that standard Thai house insurance coverage starts w/ the estimated "construction cost" for the building on the day it is built and depreciates linearly with age on a very short schedule! Look at the sad state of many older buildings around BKK and you can start to understand why...

Depending on your age, income, and plans, it might make sense to get some affordable coverage now and start saving away your own "insurance fund" for later years when the commercial coverage will not be enough? After not too many years, the amount you've saved away might equal the coverage you are offered.

I had the same shock about typical medical coverage limits here, and started trying to save/invest to self-insure us for a future when we might have kids and might require western medical treatment and such. (We're just into our 30s now.)

[Thetyim]

My house (sorry the wife's house) was insured with the AIG for nine million. No problems.

I can only suggest that they don't like townhouses in Bangkok.

[Sir Burr]

My house is insured for 9 million baht with the Commercial Insurance company. This covers fire, storm, flooding, the lot. Costs me just under 10,000 Bt per annum.

The reason Insurance companies don't like townhouses, is because if any house in the row has a fire, potentially, all the houses can be destroyed.

My house is relatively cheap to insure because it's a detached house with the nearest neighbour 30 metres away.