Fire insurance, as the name implies, protects you from financial ruin if something unexpected happens to your home in case of a fire. But that, in fact, is not the only peril most plans in the market cover. Mishaps you’re protected against is usually pretty broad, from fire to lightning strikes, explosion, water damage and so on.
The premium you have to pay for a fire insurance policy is calculated by applying a rate percent to the sum insured, which is usually based on either:
- Full mortgage amount;
- Outstanding loan amount; or
- Property reinstatement cost.
Right now, the sum insured in most plans are set based on the full outstanding mortgage amount. That’s why the sum insured – and your premium – goes down year by year at the time of renewal. And by the time when your mortgage term ends, the sum insured will instead depend upon the rebuilding value of your property looking at factors such as location, GFA and the neighborhood that you’re living in. If you buy fire coverage through an insurer or bank in Hong Kong, the premium rates in general range between 0.03% and 0.15% of your sum insured.
Here’s a look at what the fire insurance policies available in town cover and how much they cost:
| One Degree | ||
|---|---|---|
| Plan | Event covered | Premium rate |
| Fire Insurance | Fire Flood Lightning Boiler or gas explosion (Coverage can be adjusted depending on your mortgage bank’s requirements) | 0.03% of sum insured |
| HSBC (underwritten by AXA General Insurance) | ||
|---|---|---|
| Plan | Event covered | Premium rate |
| Standard Cover | Fire and lightning Explosion Typhoon, windstorm and flood Landslip and subsidence Earthquake | 0.11% of sum insured |
| Comprehensive Cover | Fire and lightning Explosion Typhoon, windstorm and flood Landslip and subsidence Aircraft Earthquake Vehicle impact (by third party vehicle) Riot and strike Malicious damage Water tanks, apparatus and pipes | 0.15% of sum insured |
| Standard Chartered (underwritten by Allianz) | ||
|---|---|---|
| Plan | Event covered | Premium rate |
| Standard Cover | Fire, thunderbolt or subterranean Fire Explosion Aircraft damage Water tanks, apparatus or pipes Theft Impact by road vehicle Earthquake or volcanic eruption Hurricane, cyclone, typhoon, windstorm and flood Riot and strike Malicious damage Sprinkler Leakage Landslip and subsidence Spontaneous combustion Bush fire | 0.125% of sum insured |
| BEA (underwritten by Blue Cross Insurance) | ||
|---|---|---|
| Plan | Event covered | Premium rate |
| Fire Insurance | Fire Lightning Bush fire Aircraft and other aerial or spatial devices or articles dropped from them Earthquake (fire shock and flood) Explosion Vehicle impact (by any vehicle) Riot and strike Malicious damage Sprinkle leakage Typhoon Windstorm and flood Water tanks, apparatus and pipes Landslip and subsidence | 0.15% of sum insured |
| AIG | |||
|---|---|---|---|
| Plan | Event covered | Premium rate | |
| Premium Home Plus – Enhanced Version | Fire Lightning Explosion Earthquake Impact of aircraft Bursting or overflowing of domestic water tanks or pipes Windstorm Typhoon or flood Riot or strike Malicious damage Impact by third party vehicles Landslides and subsidence | Sum insured > HK$1.5M | 0.07% of sum insured |
| Sum insured ≤ HK$1.5M | 0.08% of sum insured | ||
| Ping An Insurance | ||
|---|---|---|
| Plan | Event covered | Premium rate |
| Fire Insurance | The replacing cost for any loss or damage caused by: Fire; Lightning; or Explosion of boilers or gas used for domestic purpose | 0.01% of sum insured |
| Kai Fung Insurance | ||
|---|---|---|
| Plan | Event covered | Premium rate |
| Kai Fung Mortgage Insurance | Aircraft or other falling objects Fire Lightning Earthquake Explosion Typhoon Windstorm and flood Bursting or overflowing of water tanks or pipes | 0.05% of sum insured (subject to age of property) |
Looking for a Fire Insurance for your new home? With OneDegree, you’ll pay just 0.03% for a policy, and if you find a better rate elsewhere, we’ll match it! Click here to learn more.