This case study will explain a Hong Kong example of how home insurance has helped one of our clients and provided him with significant benefits. Home insurance offers coverage to a home and the physical contents that were damaged by the unpredictable event. Events can be anything, such as a storm, flood, earthquake, theft, vandalism, and more.
Background of Client
The client is an expat who is renting a flat in Hong Kong. Owning or renting a flat/home in Hong Kong comes with many risks. Such as weather damages, fires, floods and even burglary. In this city, when one tries to repair the property or replace stolen goods, it can be very costly and a long process.
The client had faced a terrible problem that affected his home, and the contractor calculated it as a high-priced repair. The case he faced was a washing machine that started to leak in the morning while he was at work all day. Flood damages are one of the most expensive to recover from as it may take months to fix walls, floors, wiring, and more. The water leaking from the washing machine caused a room to flood and ruined the wooden floor laminate and, over time, could have damaged more.
The calculated costs of repair were estimated to be around HKD 5300 plus with a one-week repair duration. The client was lucky the flooding was constrained in just one room. As the cost can increase depending on the severity of the damages.
How Home Insurance was a Solution?
Fortunately, the client had purchased home insurance through Red Asia Insurance. The policy we provided cover all the damages caused by the flood. In addition, home insurance will cover the cost of repair and finance the cost of living away from home during repair periods (not needed in this case). Therefore, the client did not have to spend an expensive amount on repairing the floors with home insurance. In this case, no personal property was damaged, but the insurer could also reimburse the assets in the house at market value.
In this case, the client was paying a premium of HKD 900 annually. The home insurance provided the client with a total compensation amount of HKD 4900 for repairs in less than 10 days. Although the more damages to the home the higher the payout will be to the client, with terms and conditions that apply.
In this case, the client was very fortunate that he had purchased high-quality home insurance from Red Asia insurance. The insurance paid for all repairs/replacement of the wooden titles and would have compensated a larger amount if other factors were damaged.
Homes are one of the most significant investments one makes in Hong Kong. That’s why it is crucial to protect this investment and avoid spending more unnecessary costs.