Protecting Your Stuff with Home Insurance

Many people all over the world often overlook home insurance when it comes to their personal protection or insurance coverage. Health insurance, car insurance, and even (in Hong Kong) maid insurance, will all typically be considered and purchased before any home insurance protection.

In fact, for many people home insurance isn’t ever purchased until a major life event necessitates it. For example, intending to propose and purchasing an engagement ring means that many individuals will now consider what will happen should such an expensive item become lost or stolen, and will take steps to manage that risk.

While Hong Kong is an exceptionally safe city and crime is rare, unfortunate situations may still occur. In the last 6 months there have been a spate of home burglaries with the most recent incident occurring at the home of actress Elvina Kong Yan-yin – the 5^th burglary the actress has experienced.

Home insurance options in Hong Kong come in an array of forms, and can address a number of risks in and around your household.

What is Home Insurance in Hong Kong?

Home Insurance is actually the catch all term for two distinct and separate products designed to protect you from the financial outcomes of risks relating to your home (or apartment) and belongings.

The first type of “Home” insurance coverage is Fire Insurance. This is normally purchased by individuals who own their property and is extremely straight forward in how it works; if your home is damaged due to a fire then the insurance will provide compensation for rebuilding or repair costs. It is possible to extend fire insurance to a range of other associated risks (also known as perils) including Flooding, Landslips and Subsidence, and even earthquakes.

The second type of coverage is Home Contents insurance, also known as renters’ insurance, or just simply “home insurance.” This is a form of protection designed to cover your possessions or belongings inside a domicile. Home Contents insurance cover is, on the surface, fairly straight forward – the insurance coverage will compensate you against the accidental loss, damage, or theft of your personal possessions inside your home.

However, it is important to understand that Home Contents insurance actually offers a great deal more than this basic understanding of the coverage.

Home Contents Insurance Protection

When it comes to your stuff, your things, your belongings, Home Contents Insurance has the ability to protect against loss or damage outside of your residence. In fact, depending on the insurance policy you choose to purchase (and the insurer you choose to purchase it from), you may be able to receive coverage against the accidental loss, damage, or theft of your belongings anywhere in the world.

This key benefit is often overlooked by many policyholders considering a Home Insurance plan, but in Hong Kong the inclusion of Worldwide All Risks protection under a Home Contents Insurance policy is fairly common. As such, under most Home Insurance plans offered in HKSAR you will receive protection against losing your belongings while on vacation overseas, or if they are stolen on the bus while you are commuting to work. It is not just your possessions, either. In many cases, a Home Contents Insurance policy will be able to offer support with stolen cash or even unauthorized used of your credit cards!

But this only addresses your things – and while protecting your things is a critical concern of Home Insurance, the utility of this type of insurance goes far beyond your possessions.

If your apartment is flooded and becomes unlivable, many Home Contents Insurance plans will provide money for temporary housing arrangements while the flooding situation is addressed. If the power goes out, and the food in your fridge goes off, many Home Contents plans will address this as well, and provide the policyholder with funds to replace the spoiled items. Further to this, most basic Home Contents Insurance products in Hong Kong will also supply limited Third-Party Liability protection to cover eventualities like burst pipes, or fires for which you were determined to be at fault.

On top of all this is the fact that the Insurance Companies providing Home Insurance products in Hong Kong often have dedicated support teams – giving you access to preferred vendors for plumbing, electrical and locksmithing services to help you live more comfortably at home.

Obtaining Home Insurance in Hong Kong

Purchasing Home Insurance in Hong Kong is simple. The policy will be valued based on the total square footage of your home, as well as the total value of your possessions; bigger homes with more things inside them will pay more for protection than smaller apartments with limited contents.

However, it is important to realize that you have extensive choice with regards to your Home Insurance protection, and not all policies are equal. So, shopping around and making certain that you are buying an insurance plan that is right for your needs is critical – otherwise you could end up with a plan that is unable to support you when you need it to.

CCW Global is an independent insurance broker offering no-cost, no-obligation consultations for any individuals interesting in evaluating the Home Contents Insurance options best suited to their life. Our expert advisors have years of experience in assisting clients with all aspects of their insurance protection, from inception to renewal, and our dedicated claims team is here to provide support in the event that you ever need to use your plan.

For more information, or to arrange a consultation, please Contact Us Today.

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