A Hong Kong home or apartment is known for its size, price, and height. Each Hong Kong apartment is either owned by a landlord or rented by tenants. No matter who lives in the home or apartment, they need home insurance.
Home insurance in Hong Kong is a vital policy that helps cover homeowner’s risks. It allows homeowners to claim if their apartment has been damaged by a covered reason.
However, sometimes before the insurance hands over that blessing of a check, a surveyor must do a few inspections. Insurance companies usually plan home insurance inspections when the damage is extensive, and the pay-out is large. The assessments determine the claim costs and the authenticity (in case of fraud claims).
Hence the article will explain the steps of most Hong Kong home inspections before the insurance claim reimbursement.
What is Home Insurance?
Home insurance is a personal policy that offers coverage for a home and the physical content against damage or loss due to an unpredictable event. These unfortunate events in Hong Kong typically include natural disasters (typhoons), fires, floods, vandalism, or theft.
Home insurance is necessary whether you own or rent a luxury home or small apartment in Hong Kong. Insurers can customise the policy to be a landlord insurance or tenant insurance.
Inspection Process for Hong Kong Home Insurance Claim
1. Cause Of Accident
The first step for any home insurance inspection is to determine the cause of damage or loss. For example, the damage could be due to a Hong Kong typhoon, fire, flood, or robbery. Insurance surveyors will analyse the situation and ensure it is a real claim – Especially fires and flood claims.
The specific policy must cover the cause of the accident for the claim to move forward. Any Hong Kong home can be a victim of any of these claims. But with insurance, landlords and tenants do not need to worry, as long as the cause was not intentional.
If the cause is covered, the Hong Kong apartment analysis will begin.
2. List Of Damaged Assets
Damage or loss can be to the home and the physical assets. These assets can be costly and add up to a significant loss. Therefore, home insurance will note a list of assets the covered accident affected.
The list is usually more extensive when claims are due to a fire, flood, or theft. The assets can include expensive technology products (TVs & laptops), furniture and other fixtures. Jewellery and art collection covers will depend on the policy. As some home insurance may not cover luxury high-value assets.
In the end, the Hong Kong home surveyor will have a detailed list of assets damaged or lost. The list will help them understand what repair or replacement is needed.
3. Electrical Condition
Many Hong Kong home fires are due to faulty wiring or electrical issues. Hence, the surveyor always checks the condition of electrical wiring after the accident. The assessment helps determine whether it is in good condition or needs repair.
This stage is crucial as it can avoid future fires and home damage. It also helps understand the age of the home’s electrical system. It is important to note- If the system is very old and has not been updated in the past few years, it may affect the cost paid out.
Due to the electrical fire risks, many insurance companies do not cover Hong Kong apartments in budlings over 50 years old.
4. Plumbing & Drainage Conditions
Why was the flooding caused, and why did the water not drain over time? These are questions Hong Kong home surveyors must ask when analysing flooding damage. Most apartments in Hong Kong have efficient draining (near main pipes). Hence plumbing and drainage conditions could be the severe cause of the size of flood damage.
After insurance surveyors have run tests, they must have a solution to help homeowners repair their plumbing. Home insurance may cover the repair cost of pipes but may also exclude this cost due to the age of the plumbing or negligence.
5. Walls and Floor Inspection
Walls and flooring are crucial to any Hong Kong home; damage to either can be devastating. A flood or fire can quickly destroy Hong Kong flooring and walls. The surveyor’s job is to analyse the interior damage and repair notes.
Sometimes the damage cannot be seen by the naked eye until it is examined and tested. Home insurance will pay for the repair of these essential parts of the Hong Kong property. As a result, homeowners and tenants will not need to worry about the interior structure affected and just pick what colour they want their walls to be.
6. HVAC Systems Check
Heating, ventilation and air conditioning (HVAC) are technologies used to control the temperature, humidity, and air purity in a Hong Kong home. Almost every home in Hong Kong has an AC, which can cause fires or be damaged during home fires.
They are vital to be checked to avoid future home incidents. Additionally, ensure the homeowners are breathing pure, non-toxic air. If repair is required, it must be done by professionals who will be suggested and covered by home insurance.
7. Exterior & Third-Party Check
At times the damage reaches the external structure, and the insurance of the causing apartment is liable. For example, an apartment fire may burn the neighbour’s doors or the wall outside the building. The damage all depends on how serious the disaster is.
The surveyors must check if there was indeed any exterior or third-party damage. Then calculate the cost of repair accordingly. The insurance will then pay the third party the fund to repair the damage due to the policyholder’s accident. The cover and assessment will save homeowners a large amount of financial loss.
8. Final Damage Calculation
The last stage of a Hong Kong home insurance inspection is the final inspection calculation of each step. This is when policyholders must cross their fingers – as the number may either be what they need or under (if some parts are not covered).
The final report will have the breakdown of all the complete inspections and what will be paid at replacement or market value. With the information, the homeowner will receive the appropriate check to help repair and replace their home and its contents.
The calculation and reimbursement all depend on how serious the damages were, the cause and the policy itself.
Why Are Hong Kong Home Insurance Inspections Done?
A home insurance inspection is necessary when purchasing and claiming home insurance. The insurance inspection commonly occurs after a claim is submitted to calculate the cost of damage. However, insurers can also inspect before covering the Hong Kong home to calculate the premium (normally for old buildings).
However safe or modern the city is, your Hong Kong apartment can still be affected by various risks and sudden damages. The insurance inspection post-claim helps homeowners and tenants to recover from horrible situations.
With home insurance, even devastating situations feel better, as the repair is just a claim and inspection away.
To Learn More about home insurance and protect your Hong Kong home from unpredictable risks, contact Red Asia Insurance.
