For anyone living in Thailand, whether a seasoned expat or a new addition to Thailand, making sure you protect your home and your possessions is a key consideration. It’s all too easy to fall back into the relaxed way of life, which Thailand is famous for, and forget the importance of protecting your home and it’s contents.
What can a home insurance policy protect me against you may ask?
The following article looks at some of the risks you can insure against. Remember that cover varies on a provider to provider basis, so be sure to speak to your intermediary about your exact needs so that they can recommend products in line with those needs. Whether you are a property owner, or you are renting a property, home insurance can protect you against a number of potential issues. Here we break down the components of what you can cover:
1. Buildings. If you own your property, then you will want to make sure the physical building is covered. This includes fixtures and fittings which may have been added to the property. Why insure your buildings you may ask?
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Fire. Fire represents a serious risk to many condo buildings and housing complexes in Thailand. Fire standards in Thailand may not be up to the same level as they are in our home countries which is even more of a reason to cover against fire. There have been several big condo fires in Bangkok over the past 5 years which illustrates that fire in Bangkok is a real and serious risk.
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Storm. Recent Summer storms in the North of Thailand illustrate how ferocious the weather can be in Thailand. If that lovely tree in your garden is blown over and it falls onto your house, being covered all of a sudden saves you a lot of money. A risk related to storms is that of lightning. If you property takes a direct lightning strike, the chances are the damage will be costly to repair.
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Water damage. Water pipes can burst or be faulty the world over. Those who have been unfortunate enough to experience serious water damage issues will understand that reinstatement costs are not cheap.
Points to note:
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When you insure your home it’s important that the sum insured represents the full replacement value of the buildings. It is not the same as the price you would hope to get for the property in the event of its sale.
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If your home is a holiday home be sure to declare this to your intermediary. Some insurers have clauses which render your cover useless should the property be unoccupied for a set period of time.
2. Contents. Insuring the contents of your home applies equally to home owners and people who rent property. The contents of your home include furniture, furnishings, and clothing which do not leave your home. If you have any high value items such as antiques and art be sure to speak to your intermediary, as insurers have different standpoints regarding declaration of these items at the front end of the policy and even if they will cover the items at all.
3. Personal Effects. These are items which you take outside of your home. Examples include jewellery, clothing, sports equipment and mobile phones. Again it’s important that you examine each insurer’s policy in detail. Make sure you understand the limits of the policy you are buying.
4. Personal Accident. PA cover provides lump sum payments in the event of an accident causing death, dismemberment or total permanent disability. While it is not a substitute for good health insurance, it provides financial indemnity in the event of an accident.
5. Personal Liability. This cover protects you in the event that a third party is injured, or their property is damaged by your property.
Point to note:
- When purchasing property insurance it’s important to understand the importance of making sure your levels of cover are adequate. If you under-insure and then make a claim, then an insurer will apply average to your pay out. Thus, if you under-insure by 50%, then you will only get 50% of the claim payment.