Home Insurance. Protect Your Life(1)

Table of Contents

Home Insurance

Level 10 Mangkhut hits Hong Kong and some buildings in Hong Kong are badly damaged. If you purchase home insurance in advance, you may suffer less losses. This time I would like to introduce you to home insurance. Common types of home insurance include “building insurance” (commonly known as “fire insurance”) and “home contents insurance“. Many times when applying for a bank mortgage, fire insurance will be included, but keep in mind that fire insurance is not the same as complete home insurance.

Building Insurance

“Fire insurance” generally refers to outdoor protection, mainly covering damage to the structure of your own building (whether it is a residence, property, factory, shop, etc.). For example, walls, floors, ceilings, doors, windows, toilets, pipes and wash basins, etc. Fire insurance will reimburse the cost of replacing or rebuilding it. Eligible insured accidents include floods, fires, typhoons, landslides, earthquakes, etc.

Example of coverage: Cracks in the wall due to typhoon.

Home contents insurance

“Home contents insurance” generally refers to indoor protection, which compensates for damage to the contents in the house due to accidents. The property in the house includes valuables (gold and silver jewelry, money, collectibles, etc.), furniture, home appliances, home decoration, etc. Accidents generally refer to fire, flooding, explosion and theft. Most home insurance plans provide 24-hour home support and can provide referrals for services such as plumbing repairs, locksmiths, and electrical appliance repairs. Note that home insurance plans will list exclusions and deductibles. The Consumer Council pointed out that people tend to ignore the deductibles, claim limits, and exclusions of insurance policies, resulting in unsuccessful insurance claims in the future. In addition, most home insurance premiums are determined based on the building area. The higher the coverage, the higher the premium will be.

Example of coverage: Typhoon breaks glass

Examples of non-insurance: During the renovation period, cracks in the building wall are not covered by the coverage (unless renovation insurance is purchased)

If you are suffering from emotional distress due to financial pressure, you can contact our center’s free consultation hotline at 6687 2389, and our financial social workers will be happy to assist.

FAQs

1. What is home insurance?
Home insurance is a type of insurance that provides financial protection against damage or loss to your home and its contents due to various unforeseen events, such as natural disasters, fires, theft, and more.
1. What are the common types of home insurance?
The common types of home insurance include building insurance (also known as fire insurance) and home contents insurance.
1. What does building insurance cover?
Building insurance primarily covers damage to the structure of your building, including walls, floors, ceilings, doors, windows, toilets, pipes, and wash basins. It typically reimburses the cost of repairing or rebuilding these structures in case of eligible insured accidents like floods, fires, typhoons, landslides, earthquakes, etc.
1. What does home contents insurance cover?
Home contents insurance protects the belongings within your home, such as valuables (jewelry, money, collectibles), furniture, home appliances, and decorations. It compensates for damage or loss caused by accidents like fire, flooding, explosion, or theft.
1. What are some examples of coverage under home insurance?
Examples of coverage include compensation for damages like cracks in the wall due to a typhoon or glass breakage caused by a typhoon.
1. What are some examples of situations not covered by home insurance? Examples of non-insurance situations may include damages during a renovation period, such as cracks in building walls, unless specific renovation insurance is purchased.
2. What should I consider when purchasing home insurance?
When purchasing home insurance, it’s essential to carefully review the terms, exclusions, deductibles, and claim limits of the policy. Additionally, consider the coverage amount based on your building area, as higher coverage typically results in higher premiums.
1. What should I do if I have questions or need assistance with home insurance?
If you have questions or need assistance with home insurance, you can contact our center’s free consultation hotline at 6687 2389. Our financial social workers will be happy to assist you, especially if you’re experiencing emotional distress due to financial pressure.