12 Reasons Why You Should Think About Contents Insurance in Hong Kong

Hong Kong has a fairly solid reputation for being a safe place – especially for expatriates. Crime is, for the most part, extremely low (and this could be even more true depending on your home country). The everyday wariness of crime which exists in other parts of the world isn’t prevalent in Hong Kong – most of us live in apartment buildings with 24/7/365 security! Why on earth should we be worried about someone breaking into our apartments? How is that even going to happen when you’re on the 25th floor with a steel gate in front of your door?

Unfortunately, this isn’t as unlikely as we’d like to think. And while overall crime rates are down in 2018, since the start of October there have been a series of break-ins, burglaries, and robberies across the city.

As recently as Monday November 26 it was reported by the SCMP that thieves had stolen valuables and almost HK$ 330,000 from a safe in a Discovery Bay flat.

But that was only one of 3 burglaries in Hong Kong that day. All of which occurred in a 4-hour time frame.

What you need to know about the HK Burglary situation in November 2018

Apart from the November 26th report previously mentioned there was also a break in at the home of the former commander of the HK Auxiliary Police at the peak on October 24th 2018.

This is in addition to a rash of incidents earlier in October including a HK$900,000 haul from a Kwun Tong Property, HK$42,000 from a French Couple living on the peak, and HK$120,000 and HK$ 80,000 from two Repulse Bay homes.

In fact, the recent increase in break-in activity has prompted police to take increased action to tackle the burglary problem. Unfortunately, during the very first night of their operation to address burglaries on Hong Kong island was the same night that the first of the Repulse Bay properties was hit.

The second, less than 2km away, was hit less than 24 hours later.

In between the two Repulse Bay robberies, a flat in Parkview was also victim to a break in! This is all happening on the first night of the police operation to target burglaries.

Hong Kong is a very wealthy city, and there are always going to be targets of opportunity. But its not just the home invasions that are happening.

On November 20th a Michelin recommended restaurant in Mong Kok saw its security shutter pried open and HK$ 20,000 in cash and a computer stolen (in addition to the damage caused by the thief).

On November 22nd 2018 there was an armed robbery at the Regal Riverside Hotel in Sha Tin, where a gang of men assaulted and stole HK$ 15,000,000 in cash.

Incidentally, on the same day that the Mong Kok restaurant robbery was happening, there was another home burglary. This one was in Yuen Long were HK$ 817,000 in cash and valuables was taken.

By our count, since October 1st 2018 that makes a count of at least 12 separate incidents across the city, targeting a wide range of victims including businesses and the private properties of both expatriates and locals.

We told you that there would be 12 reasons for thinking about contents insurance in the title of this article. Unfortunately, we don’t have a list for you – the 12 reasons are the 12 separate, high profile, break-in and burglary incidents which have occurred locally over the last month.

Sorry for the clickbait.

Why You Should REALLY Be Thinking About Contents Insurance

If you’re still reading and haven’t bounced due to lack of lists, let's look at Contents Insurance and why it might be a good idea to look at some policy options.

Contents Insurance, also known as Renter’s Insurance, isn’t a compulsory insurance purchase in Hong Kong. Unlike Fire Insurance, there is almost no situation (outside your landlord demanding that you purchase protection as part of your lease agreement) where you would be required to get contents cover.

This is as equally true for businesses as individuals. But because individual cases are simpler, we’re going to use a single flat with a single-family occupancy as the basis for everything that we’re talking about in this section.

As previously mentioned, there is an assumption that Hong Kong is a pretty safe and crime free city – all things considered and recent incidents aside that’s a pretty easy assumption to make. Especially when it comes to our homes.

• Majority Apartment Living
• Majority of Apartments Buildings have security and/or 24/7 staff
• High Rises hard to get into externally
• Low incidence of street crime

It is very easy to become lulled into a sense of complacency. Especially when many expatriates come from home countries where it is very important to worry about things like home security systems and burglar alarms. Or where the car driving slowly down the street slowly, the driver taking a video with their phone, doesn’t pose any sort of threat or second glance.

Unfortunately, this complacency, as with the extreme wealth projected by a significant portion of the Hong Kong population who live in districts like the Mid Levels, Repulse Bay, Discovery Bay, Stanley, Shek O, Deep Water Bay, Kowloon Tong, Kadoorie Avenue, and more.

The complacency of not having to worry constantly about crime also leads to lapses in crime deterrence – because we assume that the systems are already in place. But how many people do you know who have a burglar alarm in their apartment or home?

How many people worry about strangers and workmen coming in and out of crowded and busy apartment blocks? How many of you have actually had to sign into a sign in desk 100% of the time in every complex where it was posted.

As our “12 Reasons Why You Should Think About Contents Insurance in Hong Kong” show, crime can and will happen in our city, especially if you are presented (or presumed) to be a target. Unfortunately for the majority of expats, that presumption is almost a given just by virtue of being foreign – even if it isn’t necessarily true. This presumption is compounded upon the location of your home. And even further by any security, or lack of it.

So, what does this mean for you?

Simply put, Contents Insurance isn’t really purchased in Hong Kong until there is a need for it. Typically something like an engagement ring will do the trick. The situation normally goes like this:

The hopeful suitor will buy a reasonably priced ring and immediately become incredibly concerned about the future safety of this item, on which they may have spent more than anything else previously in their life.

At this point this individual will then think about looking at an insurance policy which will cover the loss of this purchase.

What Hong Kong Contents Insurance Does For You

Home Contents insurance plans will cover your personal possessions anywhere in the world, against all risks which could result in a risk.

The industry term for this is “Worldwide; All Risks.”

When the policy says “personal possessions,” “worldwide,” and “all risks” it means the laptop that got snatched off the bus in Thailand. Or the camera that suffered water damage in the bathroom. Or the Engagement ring that sank to the bottom of the ocean during that recent junk trip.

Most relevant to our initial premise of this article, it means your home if a robbery happens.

Now we’re not saying that a robbery will happen. And its not even likely that you will be the victim of a robbery or burglary.

But that’s the purpose of insurance

Insurance is meant to lessen the risk in our lives, and there is always a risk. In Hong Kong, it seems there have been a number of victims from this particular type of risk recently, and there have been some regretful losses of some fairly large amounts of money and valuables.

If you’re interested in learning more about a contents insurance policy that may be suitable for your home or business, or if you would like to compare quotations today, please contact us to speak to a broker. Alternatively, you can complete the short form at the top of this page and one of our expert advisors will get back to you directly.