Changing Weather and Your Risks

Hong Kong is poised to face stronger typhoons in the coming years, according to recent reports from the Hong Kong Observatory. With bigger temperature swings expected to continue, and at least 5 to 8 typhoons predicted in the coming typhoon season, there is no time like the present to consider how changing weather is impacting your life, and where you may be most at risk in the event of a major storm.

Insuring Your Property Against the Weather

With heightened weather threats come an increased risk to your property. Hong Kong, as a city of high-rise buildings, built next to the water, faces unique challenges when it comes to mitigating losses associated with storms and other natural disasters – from storm surge flooding underground carparks and ruining vehicles, through to potential landslips and subsidence concerns on major apartment blocks requiring extensive repairs, there is a lot that can go wrong as mother nature inflicts her wrath across the region.

So, what are your options?

Well, unfortunately nothing is going to prevent the next super typhoon that hits the city, but you can be prepared for the aftermath by taking steps to secure your property, and your possessions.

Using Home Contents Insurance for Weather

Home Contents insurance, also known as “Renter’s Insurance” elsewhere in the world, is a fairly common form of insurance coverage. Typically, this type of policy is used to insure your possessions inside your home – things like jewelry, electronics, art, and collectables are all the usual reasons to purchase a renters insurance policy.

But did you know that many Home Contents insurance plans in Hong Kong offer coverage against financial losses should your rented apartment become unlivable? Or that they will cover things like food spoilage in your fridge in the event that your power goes out?

Often found in the coverage afforded to your possessions under a Home Contents insurance policy is protection for a range of ancillary risks – if, for example, water floods your flat during a typhoon then many renter’s insurance plans will afford you financial support to find temporary accommodations while your apartment is cleaned of damage.

If you don’t own your apartment in Hong Kong then Home Contents Insurance is a great solution to ensuring that you have support in the event that you experience the worst consequences of a typhoon impacting your home.

Fire and Allied Perils Insurance for Storms

If you own your flat or home in Hong Kong, in addition to covering the things inside you will likely have been required to purchase Fire Insurance as a condition of any mortgage you have received. Fire Insurance covers the rebuilding costs of your home in the event that it is damaged or destroyed due to fire.

However, it is possible to extend fire insurance coverage to include a range of affiliated risks, also known as Allied Perils.

If you have a Fire Insurance policy, you are only covered for losses which were initially caused by fire – a fire insurance policy will not cover a loss where the proximate cause was anything other than fire.

But, by extending the policy to cover allied perils, you can protect your property against losses stemming from water, wind, landslips, subsidence, and even earthquakes. These are all losses which would be excluded from a standard fire insurance policy, but by opting to purchase a plan with these additional benefits you are able to ensure that your home will still be there, even after a direct hit from a super typhoon on the city.

Travel Insurance for Trip Disruption

If you’re planning any overseas trips this year, then the possibility for weather disrupting your journey is extremely real.

According to reports, Climate Change is disrupting air travel. Which means that more flights are going to be delayed, and more cancelations will occur as increasingly strong storms disrupt airline logistics. This is ultimately going to have an impact on you as you travel overseas. And while there is no way to avoid a lengthy delay, it is possible to ensure that you are not losing money because of it.

Travel Insurance offers coverage against both delay and cancellation of your travel. In addition to this a comprehensive travel insurance policy will also cover things like lost bags (in case your luggage gets blown away while its with the baggage handler), and medical costs while you are overseas. All of this works together to ensure you have robust protection against myriad weather risks you may face, while at the same time allowing you to enjoy your trip secure in the knowledge that you will have the support you need, when you need it.

Comprehensive Car Insurance Protection

When it comes to weather, your vehicle is just as at risk as your home or your person. This is especially true when considering that many parking structures in Hong Kong are located underground and are at risk of flooding in severe weather events.

While 3^rd Party Car insurance protection is the legally mandated minimum level of coverage to drive on Hong Kong’s roads, it is important to understand that this type of policy only covers you for your financial liability towards damage you cause to other people – it does not cover you against damage you receive on your own car. This means that in the event of loose debris smashing your windshield during a typhoon, with a 3^rd party car insurance policy you would have to pay for the damage yourself.

However, under a Comprehensive car insurance policy you can receive protection against financial costs associated with damage to your own vehicle. This means that in the situation where your parked car is damaged due to a typhoon, you would be able to claim that loss on your policy. Comprehensive Car Insurance protection is more expensive than a 3^rd party only policy, but does allow you to receive far more protection against a wider range of risks.

Weather Insurance in Hong Kong

Weather risks in Hong Kong are expected to get worse in the future. Unfortunately, this is also true of the rest of the planet, and there is no real way to prevent the emergence of the next super typhoon in the South China Sea.

However, it is possible to take steps which secure your property and interests in the event that you are impacted by severe weather events. From the policies we have outlined here, to things like weather cancellation coverage on an event insurance policy, it is possible to build a comprehensive portfolio designed to cover your specific weather insurance needs – no matter what those needs are.

For more information about the insurance solutions best positioned to cover weather risks, or to receive a free Home Contents Insurance quote, please Contact Us Today to speak with one of our expert advisors. We offer you a no-obligation, no-consultation process with an independent advisor, enabling you to make an informed decision about the coverage solutions which best meet your requirements.

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