Many people under-estimate the value of their possessions and valuables. Learn what to account for and how to provide coverage for them.
Should a fire occur in your home, your first concern will be the safety of your loved ones and yourself. But once everyone is out safe and sound and the fire is put out, it’s time to survey the damage. Within your apartment, you kept your electronic appliances, furniture, jewellery and even your prized comic book collection. While you can’t do anything about the sentimental loss, fire insurance should cover the monetary loss. That’s when you find out fire insurance only covers structural damage to your apartment’s interior and original fixtures.
What Does Fire Insurance Not Cover?
1. Your home contents – these include your furniture, appliances like your washer and fridge, electronics and clothes.
2. Renovations, fixtures and fittings – Any additions or work done to the apartment such as wood flooring, built-in furniture and kitchen fittings.
3. Legal liability – Medical expenses or property damage you accidentally cause a third party like your neighbours to suffer.
4. Personal belongings – Your jewellery, watches, credit cards, identification documents and other personal effects.
Adding Up the Costs
As you can see, the things you own can add up to a significant amount, running into the hundreds of thousands. If you’re a renter, as many in Hong Kong are, you’ll also need to factor what you will owe your landlord for his fixtures and property. That’s an out of pocket expense that you might not be prepared for right after a fire.
How Home Contents Insurance Helps
Home contents insurance covers your belongings and valuables, helping you rebuild your home after a fire or other peril. It’ll help you replace most of your common items but you should flag out anything valuable that you own such as jewellery, antiques, paintings or your wine collection to ensure that they will be covered. Beyond providing insurance for your home contents, home insurance plan also provides personal accident coverage and home emergency assistance service when you need it. It’s a single solution to many needs, not just fire protection.