What is property(home) insurance and why you need it?

If you’re a house owner or a landlord you must be familiar with property insurance or Fire insurance. However, only a few people might totally understand it’s coverage and how the insurance work. Therefore, Frank would like to use our expertise to make it easier and faster to digest for you.

Firstly, what is property insurance?

Property insurance sometimes being called fire insurance or house insurance. Fire accident coverage is just one of options from property insurance. Actually, property insurance provides a very broad range of coverage that house owners can choose from include

Lighting
Short circuit
Explosion
Damage from water leaking
Damage from vehicle or debris
Break-in robbery
Natural disasters (Flood,strom,earthquakes and other natural disasters)
Other coverage

Property insurance is not limited to single house but every kind of residents such as condominium, twin house, Shophouse and objects in the property as well. Interestingly, some property insurance also include public liability coverage in case of an outdoor incident

How property insurance help you?

If an accident or damage happened with your property while being covered by property insurance, you might not have to fix it yourself but calling your insured and they will send operator to take care the rest including inspection, estimate cost and fix the damages. However, you will be charged if the actual cost exceeds the coverage value of your policy.Normally, the type of compensation from property insurance can be divided into 4 main categories.

1. Property damage compensation : all of the costs caused by damage to property structure such as fire extinction‎,Home repair,windows replacement based on actual cost.
2. Belonging damage compensation : this compensation will be accounting for damage on belonging related to the property and not deduct depreciation case include robbery, electrical appliance explosion,etc.
3.Temporary accommodation compensation : for the cost of temporary accommodation to the Insured for the uninhabitable amount and days. Nevertheless, the liability of company shall not exceed the number of days and cost per day for each occurrence and in the aggregate as stated in the Schedule.
4. Severely damage compensation : an emergency expenses will be paid in case of severe accident or damage occurred to the property, some plans might require approval process from insurer company

Do you need a property insurance?

Property insurance is not compulsory in Thailand but it is ordinarily required if apply for mortgage-loan from capital bank or financial firm as a guarantee. Even though you already have home insurance from mortgage-loan, you could consider buying another property insurance to increase the amount of coverage or extend coverage range.

Having a property insurance is very appealing if you own properties, considering that in case of any misfortune event happened you won’t have to spend a fortune to repair and renovate the properties. Also, it would be helpful for your financial planning because you don’t have to save a lot of money for these expenses.