Fire insurance for property.
What is Fire Insurance?
Fire insurance is a type of property insurance that provides "named peril" coverage. It covers loss or damage to insured property due to specified perils. This can be divided into general fire insurance and residential fire insurance.
Things to Avoid:
– Some insurance policies "do not cover earthquakes" unless additional peril is purchased.
– Natural peril coverage is a combination of multiple perils; don't assume you'll get the full coverage for an earthquake.
– The insured amount should be appropriate for the actual value of the property.
– Avoid underinsurance and overinsurance to ensure a worthwhile claim and reasonable premium payments.
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What types of earthquake damage does insurance cover for condos?
Following recent earthquakes in various areas, condo units have sustained damage in several areas, categorized under different types of insurance, including:
1. Structural Damage
– Cracks in walls, ceilings, or the building structure caused by the earthquake. Classified as Earthquake Peril:
– Coverage depends on whether the policy specifies earthquake peril.
2. Water Leakage into the Room:
– Damage from water leakage inside the room due to cracks in the walls or structure affected by the earthquake is considered "direct or indirect damage from an earthquake."
3. Damage to Furniture:
– Furniture inside the room, such as tables, chairs, cabinets, and beds, damaged by earthquake tremors, will be covered under the policy if the policy includes coverage for property inside the room.
4. Uninhabitable Property:
– Temporary accommodation needs to be rented while the damage occurs or while repairs are being made.
– This is considered a Consequential Loss.
– Some policies, such as some home or condo insurance, may include coverage for "temporary accommodation rental" under the policy terms and conditions.
Recommendations:
To ensure a quick and efficient claims process, policyholders should do the following:
– Check whether your policy covers earthquake and consequential perils.
– Take photos of the damage. – Gather evidence, such as pre-incident photos and a list of assets.
– Report the incident and submit evidence to the insurance company as soon as possible.
– Check the amount covered by the insurance policy.
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If the condo collapses, who is responsible?
Condos or general building construction usually have "Construction Contract Performance Insurance" to cover damages. This type of insurance provides the following coverage:
1. Damage from accidents or unforeseen events or any other cause not specified in the exclusions, including natural disasters such as earthquakes.
2. Removal of debris from insured property.
3. Costs of architects, surveyors, and consulting engineers that the insured must pay with the company's approval to rebuild or replace lost or damaged property.
Who needs this type of insurance?
– The construction contractor, to be responsible for damages to the project.
– The project owner/client, to protect assets and investments.
Recommendation:
If any construction project is underway, this insurance should always be obtained. Construction insurance is important for contractors and those involved to ensure protection and compensation for potential damages from unforeseen events, reducing risk and anxiety during construction operations.
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4 Easy Steps to Claim Insurance After an Earthquake
Earthquakes are unpredictable natural disasters that can cause damage to both lives and property. If you have insurance that covers earthquakes and follow the claims process correctly and promptly, it will help you receive coverage and compensation according to your policy.
1. Types of Insurance Policies Covering Earthquakes
– Type 1 motor vehicle insurance policies cover earthquakes. For Type 2, Type 3, Type 2+, and Type 3+ motor vehicle insurance policies, a natural disaster coverage add-on must be purchased to receive earthquake coverage.
– Residential fire insurance covers damage from storms, floods, hail, earthquakes, volcanic eruptions, tidal waves, or tsunamis caused by natural disasters. The total annual liability for all perils is limited to 20,000 baht.
– General fire insurance requires the purchase of an additional special peril coverage for earthquakes.
– IAR property insurance provides earthquake coverage; however, there may be sub-limits requiring an add-on.
– Construction work insurance (CWI/CAR) covers damage to construction and civil engineering works, machinery installation, and third-party liability.
2. Gathering Evidence of Damage
– Take detailed photographs/videos of earthquake damage, such as cracked, subsiding, or collapsed walls.
– Compile a list of damaged property. 1. Prepare an estimated price.
– Keep supporting evidence such as receipts and photos of the property before the incident.
3. Report the incident and submit a claim.
– Contact the insurance company through your preferred channel (application, website, phone).
– Specify the date, time, location, details of the damage, and attach initial evidence.
– Remember the claim number for follow-up.
4. Assessment and payment of compensation.
– The insurance company will inspect the damage at the scene.
– They will review the coverage according to the policy before proceeding with compensation payment within 15 days from the date of agreement.
However, policyholders should take detailed photos of the damage and prepare pre-incident photos (if available) to use as evidence for the claim, as there are many victims and the company's inspection may take time.
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Thank you for the helpful information from DD Property.
