Home insurance

【Home Insurance 2023】A Comprehensive Guide to Demystifying Home Insurance


Just imagine: your reliable washing machine suddenly calls it quits, a pipe bursts and turns your cozy home into a makeshift swimming pool, or an unwelcome guest does a number on your doors and windows. These unpredictable calamities can strike any home, anytime, without as much as a warning. But there’s no need to panic! Home insurance is here to save the day, offering a financial safety net to shield you from a variety of home accidents. And you know what’s even better? Some policies even include third-party liability coverage for the policyholder and their pets.

You might be pondering, what exactly is third-party liability? And how can home insurance come to your aid when a typhoon leaves you powerless? Don’t sweat it, we’ve got you covered. Let’s decode the enigma of home insurance together!

Quick Guide:

Understanding Coverage Variations: Making the Right Purchase

OneDegree Home Insurance

Most home insurance plans are categorized as integrated insurance, safeguarding you against various losses and damages to your home’s assets. This includes, but isn’t limited to, coverage for furniture damage, theft, water leakages, home appliance breakdowns, and accidents during renovations (covering the losses, not the renovation cost).

Each home insurance provider brings its unique flair to the table through distinct features and coverages. For instance, OneDegree Home Insurance offers enticing benefits like “alternative accommodation” and “unauthorized use of credit cards.” The latter provides global coverage, reimbursing losses sustained from unauthorized credit card use. This signifies that even if your Hong Kong credit card is misused online overseas, your home insurance has got your back.

OneDegree Home Insurance further stands out with its “Home Appliances Warranty.” This coverage extends to the broadest range of appliances in Hong Kong, encompassing 14 common household appliances such as washing machines, air conditioners, refrigerators, microwaves, and vacuum cleaners. It’s the perfect choice for families brimming with home appliances.

When it comes to pricing, home insurance premiums are typically calculated based on your property’s saleable area, with additional clauses taken into consideration. For example, OneDegree Home Insurance caters to all types of properties up to 50 years old. Beyond the standard coverage, policyholders have the liberty to tailor their plan with add-on benefits that suit their unique household needs.

The Importance of Third-Party Liability Coverage in Home Insurance

Third-party liability coverage is a vital component of home insurance for many homeowners. In layman’s terms, it translates to assuming responsibility, usually through monetary compensation, for injuries inflicted on others or damages caused to their property due to your actions in an accident.

Is it still a bit confusing? Let’s simplify it with a common example. Suppose a window accidentally falls from your home, injuring a passerby or damaging a car. You’re likely responsible for paying a hefty sum as compensation. That’s when the third-party liability coverage of your home insurance swoops in to save the day! Your insurance provider steps in to handle the compensation, protecting you from severe financial losses. Such incidents often involve substantial compensation, hence third-party liability coverage typically comes with a high limit. For instance, with OneDegree Home Insurance, you can avail third-party liability coverage of up to HK$15 million. Remember, some policies may include a deductible in the form of a percentage or a minimum amount, so it’s crucial to carefully review your policy terms.

What’s more, OneDegree Home Insurance goes above and beyond by offering “Pet Owner Third-Party Liabilities.” This means you’re covered not only for your actions but also for any mishaps caused by your furry companions. With this special benefit, you’re shielded in the event that your pet inflicts injuries on a third party or damages their property. For instance, if your dog chews up a guest’s pricey sports shoes, the claim will be covered by OneDegree Home Insurance.

OneDegree Home Insurance

Home Insurance Coverage – A Must for Homeowners or Tenants?

Whether you’re a homeowner or a tenant, both can opt for home insurance. Home insurance is specifically tailored to safeguard your household contents, primarily focusing on the insured’s living premises. Let’s consider an example: Suppose a homeowner owns two properties, living in Property A and renting out Property B. In this case, the homeowner can only secure home insurance for Property A. However, the tenant is free to get home insurance for Property B without needing the homeowner’s consent.

It’s vital to understand the coverage and responsibilities associated with home insurance. Consider a common scenario where a pipe leakage from your property affects your neighbor. As a tenant, your home insurance would cover your third-party liability for the damages to your neighbor’s property. In contrast, the repairs of the pipes may come under the coverage of fire insurance, typically the homeowner’s responsibility. It’s essential for both homeowners and tenants to comprehend these nuances and have a clear understanding of their respective responsibilities for different aspects of the property.

Distinguishing Between Home Insurance and Fire Insurance

Home insurance and fire insurance, while both provide protection for your home, serve distinctly different purposes. Fire insurance is primarily concerned with safeguarding the building structure, whereas home insurance shields the contents and assets nestled within your home. This could include furniture, appliances, and precious possessions, offering you a financial safety net against potential accidents, including those that might occur during renovations.

Take this scenario, for instance: a typhoon lashes out and shatters your windows, leading to rainwater leaking into your house and spoiling your carpet. Your fire insurance policy would step in to cater for the window frame repairs (if applicable), while your home insurance policy would take care of your carpet replacement.

Does Home Insurance Protect Against Typhoons and Other Natural Disasters?

Home insurance typically covers damages incurred by the contents of your home due to natural disasters such as typhoons, landslides, and windstorms. However, it’s crucial to note that insurance policies may harbor specific definitions to differentiate between natural disasters and extreme weather events. For example, coverage might only kick in when a typhoon signal No. 3 (or above) or an amber rainstorm signal (or above) is hoisted.

Take the power outage incident on Hong Kong Island for instance. If this electricity failure results in your refrigerated food or drinks spoiling, OneDegree Home Insurance will fully reimburse the replacement cost of these items.

Submitting a home insurance claim typically involves a straightforward online process, simply requiring you to fill out a form. With OneDegree Home Insurance, you can expect an even swifter and smoother experience, thanks to their 5-day claims guarantee. As long as you’ve submitted all the necessary documents, your claim will be processed within 5 working days.

Remember, most insurance providers will need photographic proof for home insurance claims. So, if you encounter a home accident, don’t forget to snap some photos of the damages after you’ve managed and minimized the impact. Additionally, if the incident involves third-party liability, it’s critical not to privately admit fault or agree to any compensation requested by the affected party. Always notify your insurer immediately and let them handle the case. Any compensation agreement made without your insurer’s prior consent might be turned down.

Frequently Asked Questions About Home Insurance

Does OneDegree Home Insurance cover valuables such as jewelry and works of art?

Yes, OneDegree Home Insurance does extend coverage to valuables including jewelry, watches, photographic equipment, works of art, furs, and coins. For more detailed information, please refer to our policy wordings.

Are the possessions of my family members also covered by home insurance?

Absolutely! With OneDegree Home Insurance, your possessions and those of your family members living with you are both protected. When filing a claim for their belongings, remember that you’ll need to provide evidence showing that the family member has shared your residential address for at least 12 months prior to the incident date. Also, you’ll need to furnish proof of address within 3 months before the incident date to confirm that the family member has been residing in the insured property.

OneDegree Home Insurance provides a third-party liability coverage of up to HK$15 million, along with the most comprehensive Home Appliances Warranty in the city, covering 14 common household appliances. Discover the full scope of our extensive coverage and unmatched protection by clicking here!

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