Do both homeowners and tenants need to purchase home insurance? What's the difference between home insurance and fire insurance? Does home insurance cover water leakage? This article answers all questions about Hong Kong home insurance.
Home insurance is a protective measure specifically designed to safeguard residential properties and their contents. Whether it's furniture, appliances, or jewelry, home insurance provides compensation for repair or replacement costs if they are damaged in unforeseen events like fire, theft, or water leakage. Additionally, if your actions cause injury or damage to others' property, such as water seeping to the neighbor below, home insurance also covers the resulting legal liabilities and compensations.
Generally, standard home insurance plans do not include coverage for fire insurance. However, home insurance can cover the loss of household items caused by fire.
What's the Difference Between Home Insurance and Fire Insurance? Home insurance primarily protects the contents within a residence, like furniture and appliances, and provides various protections such as rental loss and third-party liability. In contrast, fire insurance focuses on protecting the building's exterior structure, including floors, walls, windows, and other fixed installations.
Home insurance is crucial for protecting residences and properties, applicable for both property owners and tenants.
Home insurance covers your personal property, like appliances and furniture, against damage from typhoons, water leakage, theft, etc. It also provides protection if a household accident causes injury or property damage to others, reducing your financial burden.
Insurance can offer rental protection, compensating for unpaid rent or property damage by tenants or 'rental bullies'. It also provides necessary legal support and protection in tenant-related issues.
Tenant’s home insurance focuses on protecting personal belongings, like electronics and jewelry, against theft or damage. It also covers third-party liabilities if the tenant accidentally causes injury or property damage.
The cost of home insurance is calculated based on the size of the property - the larger the area, the higher the premium. In Hong Kong, annual premiums for home insurance average from HK$500 to HK$4,000. Owners and tenants should choose the most suitable plan based on their specific circumstances.
Homeowners and tenants should note that home insurance typically does not cover damage due to illegal construction, equipment failure, or natural wear and tear. If a property is vacant for a certain period, typically 30 days to several months, you should inform the insurance company beforehand; otherwise, the property might not be covered.
The timing for purchasing home insurance depends on individual living situations and needs. Here are some typical scenarios for considering home insurance:
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