Fire Insurance

Fire Insurance

Fire insurance provides protection to cover your home structure against damage and provides the financial resources to replace or repair damage so that you may return to normal as soon as possible. This policy is similar to the All Risk Buildings Insurance policy, but contains some limitations in cover.

Most insurers that offer fire insurance have a standard cover plan and a comprehensive cover plan which costs more and provides greater scope of insurance in the policy.

What is covered under a standard Fire insurance policy?

  • Fire and lightning
  • Explosions
  • Typhoons, windstorms and floods
  • Landslides and subsidence
  • Earthquakes

What is covered under a comprehensive Fire Insurance policy?

  • All perils listed in the Standard Cover plus...
  • Damage caused by aircraft
  • Vehicle impacts from a third party vehicle
  • Riots or strikes
  • Malicious damage (vandalism)
  • Burst (or overflow of) water tanks, pipes, or apparatus

What is not covered?

  • Fire or explosions that result from an earthquake, volcanic eruption.
  • War, rebellion, or revolution
  • Ionising radiation, or radioactivity
  • Theft after or during a fire
  • Damage to electronics
  • Damage to property that is covered by another policy
  • Consequential loss or damage of any kind

Since Fire insurance is generally intended for the structure only, it is priced more competitively priced than the standard All Risk Building policy. It is not intended to cover the contents of the home or provide personal liability.

Speak to your Trusted Union insurance broker to make sure this type of cover is adequate to meet your individual needs.

Personal Fire Insurance Faq

How much does fire insurance cost?

It depends – without taking a look at your specific situation, we’re not really able to tell you how much fire insurance will cost for you. But here are some factors that insurance companies will look at when trying to determine how much to charge you:

  • Building Construction: The materials your building is built from can have a serious effect on your susceptibility to fire losses. If your building is made primarily from wood frame, you should expect to pay more for fire insurance in Hong Kong than if your building was built from concrete or other fire resistive materials.

  • Protection: If you have fire protection systems like sprinklers or fire alarms installed, you can expect to pay less on your fire insurance. Some insurance companies will also look at your proximity to public protection. If your building is near a fire hall or fire hydrant, you can expect to pay less as well.

  • Location: Location also clearly plays a large role in your risk of fire losses. If your building is located near “high risk” businesses like restaurants or manufacturing, you can expect to pay more through no fault of your own.

For more detailed information, contact a Trusted Union insurance broker for an obligation-free quote.

Is homeowners insurance and fire insurance the same thing?

It is, but it also isn’t. Fire Insurance is, in most cases, the most basic coverage you can possibly purchase. It insures against the greatest risk to your personal property: the risk of fire. If you purchase a homeowners insurance policy in Hong Kong, you will get fire insurance as part of that package – but it will likely only cover the fixtures and fitting and not the actual structure.

How do I claim for fire insurance?

Having a loss like this can be very stressful and you might be tempted to call your insurance company as soon as possible to get things over with. But it’s best to call your insurance broker first. Working with an insurance broker to handle your claim is one of the best ways to make sure you get the best compensation possible for your loss.

The first thing you should do when you have a fire loss is to call your insurance broker. Your insurance broker can help you arrange emergency service, open a claim file with your insurer and help you prepare claims information. While an adjuster appointed by the insurance company is the one who will be handling your claim, organizing repairs and determining your compensation, your Trusted Union broker will help monitor the progress and advocate on your behalf.

What are the types of fire insurance policy?

The main peril insured against by the fire insurance policy is, of course, fire. But different insurers will also add some extra perils endorsements to your policy to customize and extend the coverage provided. Examples of extra perils covered include: aircraft damage, bush fire, fire caused by earthquake, vehicle impact, bursting or overflow of water tanks or pipes, and typhoon, windstorm & flood damage.

On our wonderful little island, typhoon and windstorm are a pretty common occurrence and damage can be severe – which is why this coverage is so important. As such, there are some important exclusions that I would like to direct your attention to. Damage caused by hail, landslip, and to outdoor fixtures are not covered (but it can be endorsed onto the policy).

There are too many to list here so to get a more complete picture of the extra perils endorsements available, get in touch with a Trusted Union broker.

Why is fire insurance required?

In 1666, the Great Fire ripped through London causing nearly $14,939,550,000 HKD in property damage (in today’s money). From the ashes of this devastating fire, an innovation in modern finance emerged: the first property insurance policies.

Since then, it’s become pretty much the global standard forming the basis of all property insurance policies. All property policies are pretty much built up around the fire insurance policy by adding more coverages for things like theft or windstorm.

Another thing that makes it so ubiquitous is that most mortgage lenders require you to carry fire insurance on your building to make sure their investment is protected. Many mortgage lenders will also require an extra perils endorsement applied to your fire policy as well.

Does fire insurance cover an electrical fire?

Yes it does. Most fire insurance policies will cover damage caused by hostile fires regardless of their cause. A hostile fire is a fire that has escaped its container (i.e. a spark that jumped out of a fireplace) and has destructive effects (i.e. it burnt a hole in your carpet).

So if a power surge, faulty wiring or some other similar hazard causes a fire that damages your home, the damage to your home would be covered.

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