Given the skyrocketing prices and rents of residential real estate in Hong Kong, most homeowners will purchase a home insurance policy to protect their property and household contents. But apart from common benefits such as property damage from fire, the coverage scopes of most home insurance policies are in actuality much wider than what you may expect.
In today’s Kwiksure article, we will go through 12 home insurance coverages items that you may not realize you have in your home insurance policy.
1. Food waste caused by power outages
As rare as it is, power outages may occur in typhoon seasons and sometimes for unknown reasons. Normally, food in the fridge will stay cold and will not get spoiled for a few hours as long as the doors are kept closed. However, it is still good to know that if the power is out for a long time and your food in the fridge becomes stale, you will be covered for the cost of the food.
2. Key and lock replacement
In the event of a burglary or an attempted theft, home insurance can cover the replacement and installation costs of damaged locks. It may also cover in situations of lockout where you lose your keys or they are stolen.
3. Household removal
Moving home is a big hassle and that’s why many people will hire professional movers. But even that cannot 100% prevent brittle items such as crystal and china from accidentally breaking. This can be covered under the category of accidental damage.
4. Loss or accidental damage to notebook or tablet computer
This is a digital age, and notebooks have almost become an indispensable part of our everyday life. Some home insurance policies can provide coverage should you accidentally damage or lose your computer inside or outside your home.
5. Personal liability
For most of the time, you won’t intend to do harm to any visitor that comes to your home. However, you can’t control the unexpected. If you accidentally cause bodily injury, illness or even death of your guest, your policy may cover the compensation you are legally liable to pay.
6. Temporary housing
Imagine having to rent a hotel room after a flood in your property. The rental expenses could quickly stack up and that’s when home insurance kicks in. Home insurance covers your temporary accommodation expenses if your home is made uninhabitable after an accident. Some policies may even go the extra mile and offer meal allowance and cover alternative accommodation for pets.
7. Replacement of personal documents
Usually, the more important the documents are, the easier to lose them. Home insurance offers worldwide protection and covers replacement of personal documents money and replacement of personal documents. In the face of the growingly rampant cybercrime nowadays, it also covers loss incurred by unauthorized use of credit cards due to any loss of personal property (such as a mobile phone with payment app installed).
8. Home assistance
Some home insurance policies offer 24-hour assistance hotline service in the event of an emergency, through which you can get referral information on electrician, plumber, locksmith, dental, baby-sitting, and pest control services.
9. Feng Shui consultation
If you believe in Feng Shui and would like to bring positivity into your home by rearranging furniture or objects, you can make use of the Feng Shui consultation benefit in your home insurance policy.
10. Death and permanent total disablement
This is a benefit we hope that you will never have to use. In the event of death or permanent total disablement sustained as a result of fire, theft or attempted theft within your home, apart from your own health insurance or accident insurance, you will also be covered by your home insurance.
11. Loss or accidental damage to wine
Although we say ‘there's no use crying over spilled milk’, your home insurance policy will cover accidental loss of or damage to any unopened bottle of wine so that you can rest assured the safety of your wine collection. Some home insurance policies also allow you to insure expensive and valuable items such as jewelry, antiques and works of art with separate sub-limits.
12. Owner, tenant, occupier and personal liability
This kind of benefits offers protection to the policyholder from legal liability due to third party injury or property damage. For example, if your domestic helper accidentally pushed a pot of plants out of the window and hurt a passer-by on the street below, you may be partially liable for the fault as she was performing cleaning duties at your instructions. In this case, the personal liability section of the home insurance plan can provide coverage for your liability.
How are home insurance premiums calculated?
First thing first, as with other forms of insurance, the scope of coverage and compensation limits are the key factors in determining the premiums. Naturally, the more benefits and higher limits you opt for, the costlier your home insurance policy will be.
Secondly, the concept of ‘no-claims discount’ also applies to home insurance, which is a discount in premium offered to policyholders who have not made a claim on their insurance for a period of time. The longer you haven’t claimed, the higher the NCDs you can enjoy.
Thirdly, the age of your building and the gross floor area of your home will also contribute to your premiums. For example, for buildings over 30 years old, some insurers may impose a certain amount of water damage excess per event as a means to minimize risks on the insurer’s side.
Contact Kwiksure for further information
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