Understanding Your Fire and Insurance Risks over Mid-Autumn Festival

With Mid-Autumn festival just around the corner on September 17 2024, many people in Hong Kong will be heading to the beach to light lanterns and take in the moon. But as a festival involving fire, and one where people are traditionally prone to burning wax and mooncake boxes to start bonfires, serious accidents have occurred in past years. In fact, this year, for the first time ever the HKSAR government is displaying a drone show over the Fire Dragon parade, as an alternative to fireworks.

Understanding your fire risks in Hong Kong is always a good idea, as is taking steps to prevent or overcome the worst damage caused by a fire.

Fire Protection with Home Insurance

Most people in Hong Kong rent their apartments. In many cases, those apartments don’t have insurance until a major life event (such as the purchase of an engagement ring) or an accident (like a fire or typhoon).

What many people don’t realize is that Renter’s Insurance, also known as Home Contents Insurance in Hong Kong, will provide robust protection for a range of common household risks – including fire. If, during this Mid-Autumn festival, a wayward sky lantern comes through an open window of your flat and starts a fire, Home Contents Insurance would be able to assist in a number of ways.

Firstly, Renters Insurance would be able to replace any personal possessions you may have lost due to that fire. Renters insurance could also cover the loss of your personal possessions due to fires outside your home – this is because many Hong Kong home insurance policies will offer coverage for your belongings on a worldwide all risks basis. This means that no matter how your belongings are damages, lost, or stolen, if they are covered under your Home Contents insurance policy they can be replaced under that insurance plan.

If the sky lantern fire happens in your apartment building, it is likely that there will be smoke damage after fire services have extinguished the blaze. Renters insurance offers protections against the costs of alternative living options in this situation – providing money for a temporary rental or a hotel while your home is returned to a livable condition and the fire/smoke damage is repaired. This consideration also extends to food. In the event that a fire occurs in your residence and the power is cut, it is likely that the food in your fridge will expire during restoration of your home. Home Contents Insurance can provide coverage for replacement food, or even a food allowance while you are in a temporary living situation.

Home Contents Insurance can provide invaluable assistance in the event of a fire – in your home, or one that you may be involved with elsewhere in the world.

Structure Protection with Fire Insurance

If you own your home or apartment in Hong Kong then it is likely that you will have been required to purchase Fire Insurance as part of your mortgage application. Fire Insurance is designed for property owners, and will provide financial assistance with the rebuilding costs of your property in the event of a covered loss.

In Hong Kong it is possible to obtain strict fire insurance, that is to say insurance which only covers losses resulting from fires, or fire and allied perils insurance. In this case, Allied perils will refer to things like flooding, landslips and subsidence, and earthquakes, giving you far more protection against a wide range of potential mishaps. But, in the case of the untoward mid-autumn festival sky lantern that comes in through an open window and starts a fire, with Fire Insurance on that property you can expect to receive assistance with the costs of rebuilding or materially fixing that residence after the event.

It is important to note that Fire Insurance is also commonly available for businesses through an office contents or shop contents policy.

Personal Accident and Health Insurance

With so many open flames and the possibility to receive significant burns or smoke inhalation injuries, depending on where you may be celebrating the festival, is real. While Hong Kong has an exceptional public healthcare system that can be accessed for a relatively modest cost, a severe injury that puts you in recovery for an extended period of time will mean a significant strain on your finances. This is especially true if you wish to see specialist doctors outside of Hong Kong.

International Health Insurance can help you access the best private hospitals and clinics anywhere in the world. By giving you the option to choose where you receive medical treatment within your plan’s geographical area of coverage you have the power to see the doctor of your choice in an emergency situation, as well as the support you need to know that you will be able to afford that treatment.

International Health Insurance is an infinitely customizable form of health coverage that offers some benefits over a traditional Hong Kong health insurance policy, but can be supplemented by a comprehensive Personal Accident insurance plan.

Personal Accident insurance will provide you with a lump sum or monthly payment in the event that you receive a significant personal injury. As significant injuries, such as the loss of a limb or serious (extensive) burns, will prevent a person from working for a period of time, this payment is intended to supplement your income while you recover. In some cases it is possible to obtain Personal Accident insurance that provide protection for lifestyle or medical expenses after a serious injury.

With a personal accident and a health insurance policy you are not avoiding getting burned during the mid-autumn festival, but are ensuring that you are able to access the very best treatment possible if you are the victim of a fire, without worry about the strain on your personal finances.

Fire Insurance Advice in Hong Kong

CCW Global has extensive experience in advising Hong Kong residents on their fire insurance and ancillary risks. Our expert, independent brokers will work with you to identify the gaps in any existing protection you may have, and provide options for suitable coverage to bridge those openings in the future. From fire insurance to business coverage, we are able to offer the insight and knowledge you need to make an informed decision on the insurance that is right for your needs.

For more information about Fire insurance in Hong Kong, or to arrange a free consultation with an expert Hong Kong insurance broker, please contact us today.