Before buying or renting a house, you should be aware of the risk behind it in advance, to ensure that you will be able to fulfill your responsibility. Home insurance is specifically designed for owners and tenants, to reduce their investment or living costs. How it may help when you encounter property damages or other accidental losses? In this article, Spacious will provide you with tips and guides, and suggest the most suitable plan for you.
Jump to: Types of Protection｜Case 1 : Out of Home｜Case 2 : Malfunctioning Refrigerator｜Case 3 : Water Pipe Burst｜Case 4 : Extreme Weather Conditions｜When to Purchase｜FAQ
What kind of protection should a Self-occupied Owner/Rental Owner/Occupier buy?
If the house is self-occupied, the owner would prefer the losses of properties at home can be covered in the insurance, and to avoid bearing any legal liability in case of accidents. On the other hand, many people misunderstand that the responsibility lies only on the tenant after renting out the property to them. The owner could still be liable for any third-party injuries or accidents regarding the flat.
Moreover, home insurance is not only applicable to the landlord but also to the tenant. According to the general terms of a lease, a tenant is legally liable for any losses inside the flat, and also any injuries caused by the tenant’s carelessness.
* tenant refers to the one who signed the lease with the landlord, occupier refers to the one who lives in the house but not the one who signed the contract, e.g. the family member of the tenant.
There are many different types of insurance plans in the market, different insurance companies offer different ranges of protection. You should make your decision based on your situation, Spacious has suggested the following combination for your reference:
| Building insurance for structural protection (Owner – self-occupied or renting out) | Structure of building(such as its roof, walls, and floors) being damaged by accidents |
| Personal belongings (Owner – self-occupied / Tenant) | Losses of personal belongings, inside or out of home. |
| Liability to third-party (Owner – self-occupied or renting out / Tenant) | Third-party losses or injuries caused by accidents(e.g. a fire or water pipe burst) |
| Loss of rent ( Owner – renting out) | Loss of rent caused by accidental damage regarding the flat |
| Home contents (Tenant / Occupier) | Accidental loss of home contents owned by tenant/occupier |
The coverage regarding loss of rent is designed for the rental owner, if the house is accidentally damaged and needs some time for repairing, the landlord will suffer from loss of rent for some time. Insurance companies will compensate you for such loss of rent.
Terms and Conditions applied, please click for AXA’s compensation details to protect your rental rights.
Case 1: Out of home
During holidays, people always go on a long vacation or trip and leave the flat empty. When you come back, and if you find your wallet or cash lost, what can be done in this situation?
The basic terms of home insurance have already covered loss from robbery, insurance company may request a report from you, issued by a related authority such as the police. You may also be requested for other documents or proof, to apply for compensation.
Terms and Conditions applied.
Case 2: Malfunctioning refrigerator
Recently, there was a blackout in Tuen Mun, Yuen Long, and Tin Shui Wai, which was caused by a fire, all electricity in the district went out for more than a few hours. As a result, electric appliances at home also malfunctioned, and food stored in the refrigerator turned sour. If you have purchased home insurance, the insurance company will compensate you for the amount you spent on re-purchasing those damaged ingredients.
Apart from food ingredients, other properties including furniture or equipment, such as wardrobe and bedstead, are also covered under home insurance. The personal belongings of the owner or tenant, such as cash, watch, and jewelry, can also be compensated in case of accidents.
Terms and Conditions applied.
Case 3: Water pipe burst
If the water pipe of the building burst, it is inappropriate to continue to live there, which forces the tenant to move out. During the period of repairing, the rental income of the landlord will be lost. You don’t have to worry, the coverage of loss of rent will compensate you for the amount of rent you lost, and guarantee you that you’ll not lose your stable income.
If the water pipe of the building bursts, and drowns the unit, it is inappropriate to continue to live there, which forces the tenant to move out. During the period of repairing, the rental income of the landlord will be lost. You don’t have to worry, the coverage of loss of rent will compensate you for the amount of rent you lost, and this guarantees you that you’ll not lose your stable income.
Terms and Conditions applied.
Case 4: Extreme weather conditions
During typhoons, if the storm has destroyed the electricity system of the building, this may affect the escalator service. If you are living at higher levels, it could be a tragedy. If you have chosen to live outside at the hotel temporarily, the insurance company could compensate you for the amount of money you spent on temporary accommodation and food expenditures.
Any extreme weather conditions, like typhoon signal No.8 or above, or black rainstorm warning, which have disrupted the supply of water, electricity, or escalator service, are possibly compensated.
When it comes to typhoon seasons, some insurance companies will provide free extra top-up, for instance, extra protection for home contents and liability to third-party, or raise the protection for personal accidents.
Terms and Conditions applied.
When to purchase?
If you are applying for a mortgage loan, the bank will usually request you for buying building insurance for structural protection, to lower the risk to the bank. You can also buy the remaining protection at the same time, to ensure that everything will be compensated by the time you repossess your property.
If you have planned to rent out your property, you should buy the insurance before the lease starts. Even if an accident occurs right after the lease starts, you are already protected in terms of legal liability and expenditures.
As a tenant, it is highly recommended to buy the insurance before moving in, ensuring that you will not bear any legal liability for any damages or accidents as long as you moved in.
Accidents are unpredictable. It is beyond a shadow of a doubt that you should not neglect the importance of home insurance. In addition, it is suggested that you should review your situation before getting insurance, and remember to choose a customized plan for yourself. Go check out AXA’s latest home insurance plans to get further information.
FAQ
What is not included in the insurance terms?
It varies across different insurance plans, generally speaking, loss caused by unauthorized construction, mechanical failure, and natural deterioration is not insured.
What is the calculation of insurance premium?
It is usually calculated based on gross floor area, the bigger the area, the higher the premium fee, and it will also be increased with extra protection.
Do the insurance terms start immediately？
Most home insurance has a cooling-off period, the terms will become effective after the period ends.
The above information is for reference only. For details of benefits, terms, conditions and exclusions, please visit AXA’s latest home insurance plans for details.
