Home insurance purchase tips and typhoon damage compensation information

Hong Kong has been hit by several strong typhoons this year, including Super Typhoon Ghagasha, with torrential rain and strong winds potentially causing severe damage to homes. With extreme weather occurring frequently, home insurance has become an important tool to protect homeowners and tenants. This article will explore key details to consider when purchasing and using home insurance, helping you prepare and avoid losses

1. Common home damage during typhoons and their insurance coverage

The following are common types of home damage during typhoons and whether they are covered by insurance:

Broken windows: Most home insurance policies coverwindows. Damage to the glass itself may require additional coverage. For example, if the glass was present at the time of construction, the policy needs to include additional coverage for the "building" portion; otherwise, some insurance companies require that window coverage be specifically stated when applying for the policy. Furthermore, third-party liability insurance may also provide compensation if a neighbor's property is damaged by a broken window caused by a typhoon.

Flood damage: Insurance typically covers flood damage caused by heavy rain, but it's important to note whether it includes losses to basements or lower floors. Some insurance companies may have additional conditions for flood damage in high-risk areas or require additional coverage.

Damage caused by power outages: Some insurance companies offer compensation for damage to electrical appliances caused by power outages, such as food loss in the refrigerator, but you need to check the policy terms in advance.

Temporary accommodation expenses due to damage to residence: Some insurance companies offer compensation for temporary hotel accommodation required due to repairs to a residence damaged by a typhoon. However, this type of coverage is only available if the original damage has been confirmed by the insurance company, and it is not covered by all insurance plans.

2. Restrictions on purchasing home insurance during typhoons

During typhoon season, especially when the Observatory has issued a typhoon warning signal, there may be certain restrictions on purchasing home insurance:

Insurance applications may not be accepted during Typhoon Signal No. 8: Some insurance companies stipulate that if home insurance is purchased when the typhoon warning signal is raised to No. 8 or above, typhoon-related losses may not be compensated.

High-risk areas or special building structures may affect the insurance application process: for example, village houses, low-rise buildings, or areas with a high risk of flooding may require additional review by the insurance company, leading to a longer application period. Furthermore, some insurance companies may require additional documentation, such as building structure reports or regional risk assessments, to complete the application process.

Issues related to purchasing insurance before a typhoon: Some insurance companies do not accept applications when a typhoon is approaching or when the policy has a waiting period, butAWMcan help you complete the application process through its internal fast application program.

3. Important notes on renewing home insurance

It is recommended to check your insurance policy before the typhoon season to avoid losing coverage due to policy interruption. If you forget to renew your policy, you can apply to the insurance company for renewal. Generally, unless an accident occurs, the insurance company will agree to renew the policy retroactively

4. Claims Process and Precautions

If your home is damaged during a typhoon and you need to file a claim, please note the following:

Take feasible safety measures: Implement safe and feasible measures as soon as possible to minimize further losses.

Immediately notify the insurance company: Contact the insurance company as soon as possible after the accident occurs.

Provide evidence of damage, including photos, repair reports, and purchase receipts.

Keep damaged items: Avoid discarding damaged items so that the insurance company can inspect them.

5. Matters Not Covered

Understanding the limitations of home insurance is crucial to avoiding failed claims. Here are some examples of exclusions:

Natural wear and tear: such as damage to furniture or building materials due to aging over time, is usually not covered by insurance.

Failure to take reasonable disaster prevention measures: If the homeowner fails to properly reinforce windows or remove outdoor objects that are prone to flying, the insurance company may refuse to pay compensation.

Insurance with known risks: For example, if you take out insurance after the typhoon warning signal is raised to No. 8, the insurance may not be processed or may not cover typhoon damage.

Vacant properties: Generally speaking, insurance companies define properties that have been unoccupied for 30-60 days or more as "vacant properties". Losses incurred during this period are usually not covered, especially if the insurance company is not notified, which is a common exclusion.

Damage to windows after renovation: If the unit has replaced the windows, the insurance company usually compensates based on the actual value at the time of loss, but it must be proven that the damage was not caused by human negligence, poor maintenance, or improper installation. If the damage is within the reasonable range of natural disasters, it is generally covered.

Loss of refrigerated food: Many home insurance plans in recent years include "loss of refrigerated food". However, it should be noted that the refrigerator may be less than five years old and a maximum reimbursement amount may be set. However, losses caused by personal negligence or power outages for maintenance announced by the power company are not covered.

Home property insurance does not cover the original building structure, such as floors, walls, tiles, and original windows. These items are generally covered by fire insurance. Claims should be made through the relevant insurance policy.

Conclusion

With the increasing frequency of typhoons and torrential rains in Hong Kong in recent years, home insurance is becoming an increasingly essential tool for protecting homeowners and tenants in light of global climate change and the growing frequency of extreme weather events. However, several details need to be considered when purchasing and using home insurance. It's crucial to prepare in advance, choose suitable insurance, and understand its limitations and claims process.

AWM's professional consulting team provides expert assistance and advice to ensure a smooth claims process, allowing you to travel with peace of mind during typhoon season. Feel free to inquire now!