[Home Tips] How to choose home insurance and make sure it’s worth buying?
🧐 Why do Hong Kong people need home insurance?
Hong Kong's high property prices and renovation costs mean the value of your home's contents is often much higher than you might imagine. If an accident occurs, losses could reach hundreds of thousands or even millions! Common risks include:
- 🔥Fire (electrical short circuit, kitchen fire)
- 💦Flooding (burst of water pipe, water seepage from upper floors)
- 🛠Decoration damage (typhoon, earthquake, accidental impact)
- 🦹♂️Burglary
- ⚡Natural disasters (indoor damage caused by typhoons and heavy rains)
- 🚪Third -party liability (e.g. flooding affecting neighbors)
Let me tell you :
Hong Kong is densely populated, and accidents often affect more than just one unit, but may also involve neighbors or even the entire floor. The compensation amount can easily exceed one million!
🔍 Main coverage of home insurance
1️⃣ Home Contents Protection
- Including furniture, electrical appliances, clothing, accessories, etc.
- The sum insured usually ranges from HK$300,000 to HK$1,000,000
- Some high-priced items (such as jewelry and artworks) require additional declaration
2️⃣ Renovation guarantee
- Including floors, walls, fixtures (such as kitchen cabinets, bathroom fixtures)
- Especially important for self-owned properties
3️⃣ Third-party legal liability protection
- Protect you from liability for property damage or personal injury to third parties (neighbors, visitors) caused by accidents
- The insured amount can reach HK$10,000,000 or above
4️⃣ Temporary accommodation expenses
- If the unit cannot be lived in due to an accident, the insurance will pay for temporary accommodation or rental losses
5️⃣ Special Protection
- Typhoon/rainstorm damage
- Plane crash (rare, but it's possible 😅)
- Personal liability protection extends worldwide
💡 5 key points for choosing home insurance
1️⃣ The insured amount should be close to the actual value
- Calculate the value of your home's contents and renovations. Don't underestimate (this will result in "proportional compensation").
- For luxuriously decorated units, the insurance coverage should be increased
💬 Editor's Tip:
Take a quick video to record your belongings so you can provide evidence when you want to claim compensation later📹
2️⃣ Third-party liability must be high enough
- Hong Kong has densely populated buildings, so a single flood may affect several units.
- Recommended minimum coverage of HK$10,000,000
3️⃣ Pay attention to the deductible (Excess)
- Out-of-pocket amount for each claim
- High deductible → lower premiums, but more money to pay when making a claim
- It is recommended to choose a plan with a reasonable deductible (e.g. HK$500-HK$1,000)
4️⃣ Additional protection clauses
- Is there any coverage for mobile phones and laptops damaged outside the house?
- Is there any special coverage for typhoons and flooding?
- Is there additional coverage for high-priced items?
5️⃣ Balance between premium and coverage
- Hong Kong home insurance premiums generally range from $300 to $1,500 per year
- Expensive is not necessarily the best, the key is whether the coverage meets your needs
📋 Editor's Note: Key Points of Hong Kong Home Insurance Comparison
| Compare Projects | Points to note | Editor's suggestion |
|---|---|---|
| Home contents insurance coverage | Total value of furniture + electrical appliances + clothing + accessories | Don't underestimate, it's better to be high than low |
| Renovation insurance coverage | Fixtures, flooring, kitchen cabinets | Luxury units must be elevated |
| Third Party Liability | Compensation amount for affected neighbors | Minimum $10M |
| Special Protection | Flooding, typhoons, and outdoor property | Depends on lifestyle habits |
| Deductible | Each claim is at your own expense | Recommended $500-$1,000 |
| Premium | Annual Fee | Balancing coverage and price |
🚫 Common Shopping Mistakes (Don't Fall for Them!)
- Buying the minimum coverage to save money → Insufficient compensation in the event of an accident
- Not paying attention to the deductible → the compensation amount was deducted to a very small amount
- Didn't read the exception clause → Some accidents are not covered at all
- Thinking building insurance is the same as home insurance → Most building insurance policies only cover common areas and structures, not your home contents
📌 Editor's Summary
In Hong Kong, home insurance is not a luxury, but basic protection . When choosing, consider:
💡 Suggested steps :
- Calculate the value of property and renovation first
- Choose a plan with reasonable coverage and high third-party liability
- Pay attention to deductibles and special benefits
- Review your coverage annually and adjust as your life changes
Editor's recommendation combination :
🏠 Home contents coverage ≥ HK$500,000
🛠 Renovation coverage ≥ HK$300,000 (higher for luxury renovation)
⚖️ Third party liability ≥ HK$10,000,000
💰 Premiums are controlled between $500-$1,200/year
This way you can ensure that your money is well spent without wasting money, and truly get your money's worth 💎💪
