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Is Property Insurance Mandatory in Thailand?

Wondering if it’s necessary to get property insurance in Thailand? Although it is not compulsory for you to have property insurance, it can help you in many ways, making it an essential thing to have.

How Property Insurance Protects Your Property?

If you are a seasoned expat or a newcomer to Thailand, protecting your home and belongings is critical. It’s easy to get swept up in the laid-back atmosphere of the Land of Smiles and forget about the importance of protecting your home and the contents within your home.

If you buy or rent a house, property insurance will cover you from a number of issues. Here’s a list of how it can help you:

1. Insurance for the property’s structure, including fixtures and fittings that can be applied to the structure’s physical coverage. Under the terms of the agreement, you will be protected from the following:

Fire hazards: Many condo buildings and housing complexes in Thailand are vulnerable to fire. Fire safety standards in Thailand might not be as high as those in our home countries which is all the more reason to be cautious.
Storm: The country’s weather can be intense, as recent summer storms in Thailand’s north have shown. If a tree in your garden is blown over and falls into your home, being protected saves you a lot of money. If your home is directly hit by lightning, the damage would almost certainly be costly to repair.
Water damage: Water pipes can burst or collapse anywhere and at any time, protection against significant water damage will benefit you massively.

2. It is equally essential to ensure your home’s contents and your personal belongings, such as furniture, clothing, electronic appliances and gadgets. If you have any high-value objects in your home, such as antiques or valuable paintings, make sure to notify your insurer at the start of your policy so that all of your belongings are covered.

3. Jewellery, clothes, sporting equipment, cell phones, and all of your other personal belongings are also covered under your property insurance policy in the event of loss or damages due to accidents or theft.

4. Property insurance also includes personal accident compensation, which pays out a lump sum in the event of an accident on the property’s grounds that results in death, dismemberment, or complete permanent disability.

5. Personal liability coverage protects you in the event that a third party is injured or their property is harmed as a result of your actions.

Key points:

  • Property insurance is optional, but it can be essential and useful in many situations.
  • Property insurance also protects the contents and your personal belongings within your home.
  • In Thailand, property insurance is frequently requested as a guarantee when applying for a mortgage loan from a capital bank or financial institution.

Other Benefits of Property insurance

Property insurance can support you in multiple ways, for example, you don’t have to repair your property using your own money if an accident or harm occurs while it is protected by property insurance. Instead, you can call the insurer, file a claim and appoint an operator to handle the rest, including damage assessments, cost estimations, and repairs. Below are some ways property insurance can help you in times of needs.

Compensation for damaged belongings – This compensation accounts for damage to personal property and will not deduct depreciation in cases such as burglary, electrical appliance explosions, and many more.

Temporary accommodation – In the event of renovations, rebuilding, or repair, the insurer will provide temporary housing before the repairs are completed.

Severe damage coverage – Medical expenses can be covered in the case of a significant accident or property damage; however, such plans may require approval from the insurance company.

You don’t have to pay for repair using your own money if an accident or natural disaster occurs.

What Damages are Excluded in Property Insurance?

What is and isn’t covered by your home insurance depends on the policy you choose. Still, it is important to understand that even the best coverage won’t compensate you for everything. Knowing the exclusions of property insurance will help you decide whether or not it is necessary for you. In general, most property insurance exclude the following things:

Floods
While floods caused by a burst pipe or other damage are covered, your home insurance may not cover floods from torrential rain or overflowing rivers. However, you can fill this gap with a rider, or add-on, to your policy for a small fee.

Wear and Tear
Like other types of insurance, property insurance is meant for accidental or sudden problems, such as burglaries, storms, and fires. Therefore, it will not cover general wear and tear. It is your duty to perform basic maintenance to avoid large expenses that insurance won’t cover.

Mold
Most insurers don’t provide coverage for mold as it’s complicated and the cause of a mold problem is often hard to identify. In order for damage to be covered, your insurer has to deem the cause of the mold to be an accidental or sudden problem.

Infestations
Termites, bedbugs, mice, and other vermin are excluded from property insurance due to the same reason wear and tear isn’t covered. Most insurers consider infestations to be part of your property maintenance. However, if the infestation causes a covered problem, such as structural collapse or a fire, you may be covered.

Property insurance claims rages from 20,000 to 3,500,000 baht.

How to Save Money on Your Property Insurance

Property insurance is a hit or miss because you only use it when your property is damaged for a covered reason. The chance of this occurring is slim, but it can happen. When an accident or natural disaster does happen, you can expect to pay a lot of money out of pocket without property insurance. However, if you have property insurance, you can save hundreds of thousands of baht if a major incident damages your house and/or its content.

The Bottom Line

Property insurance is optional, but it can be necessary when applying for a mortgage. It covers your properties and personal belongings against any unwanted situations, such as fires, vandalism, earthquakes, and storms. It is a good way to protect your property and ensure that you don’t experience a financial loss if something ever happens to your property.

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