Insuring your property in Thailand is not a legal requirement but it is recommended. In this post, we will go over the various aspects of insurance for real estate in Thailand.
Property insurance will prove essential in the event of a crisis : e.g., if your property is destroyed due to natural disasters or by third parties. Natural disasters do not occur in Thailand as frequently as they do in other Asian countries however, flooding does occur frequently in various areas of Thailand. In addition, forest fires can be seen in the north. In 2004, Phuket was struck by an earthquake. To avoid worrying about the damages you could suffer from nature or actions of unkind people, ensure you insure your property!
What kind of property can be Insured?
In Thailand there are no limitations on insurance in relation to the type of property. You can insure an apartment and a house regardless of whether it is rented or owned.
Insurance Process
If you choose to buy an insurance policy, you must contact the insurance company to arrange for an insurance specialist to visit your property. The expert will assess the property, provide insurance conditions and terms and draft an agreement that is based on the terms agreed upon. Take the time to read the document thoroughly prior to signing. If you feel more comfortable to do so, request a translation of the document in English or in your mother tongue.
Costs of Insurance
The cost of the insurance premium is determined in a variety of ways. Some insurance companies charge a fixed sum per year and others charge a percentage of the value of the property. The cost of insurance can begin as low as 600 Thai Baht per calendar year. A policy which covers the maximum amount of damages that exceed 10,000,000 THB is about 20.000 THB per year.
What You Should Be Paying Attention To
Each contract defines the maximum amount of coverage. If such amount is significantly lower than the value of the property insured you may be disappointed if an accident occurs. It is your choice whether to take out sufficient/insufficient insurance coverage.
In Thailand there are four types of insurance coverages for private residences :
Be sure to examine the insurance category. Be aware of the smallest details. For instance, a leak coming from a neighbour could be considered an insurance claim, however the leak from a roof is not.
Standard insurance will not provide coverage for flood damage despite the fact that floods are commonplace in many areas of the country. Depending on the location of your property you must pay particular attention to this issue. In general, insurance covers potential causes of damage as an earthquake, hurricane, explosion, plane crash on the insured property, vandalism, and many more.
Theft
It is important to know that insurance companies deal with burglary and theft. If there is no clear evidence of a break-in, there is no compensation. The burglary coverage will not typically exceed 10 percent of the maximum amount payable according to the contract.
Apartment Insurance
In multi-apartment structures, certain parts of the structure of the building cannot be covered by insurance such as ceilings, walls and floors. You can insure your property and responsibility to neighbors in the event you cause property damage in the event of a flood or fire. While an insurance plan for an apartment will cost cheaper than private villa insurance however, the coverage amounts are very high. Damage to furniture, finishing materials and equipment is compensated in amounts of as much as 500,000 THB. The loss of an apartment in a burglary can be as high as 200 THB; damage to third party - as high as 2,000,000 THB. Personal injury to the insured - up to 200,000 USD.
Property Investments
It is recommended to protect not just the house where you intend to live in, but also the investment properties you own.
Rental Property Insurance
If you are renting a property for a long period you are responsible for the security of your furnishings, the furniture, the house and other equipment. In order to avoid unexpected costs in case of damages we also recommend to insure rental properties. The process of getting an insurance policy is comparable to the procedure of insuring your own house.
In a nutshell, it is your own choice whether to insure your property or not. Natural catastrophes in Thailand are not typical in every area and management companies typically offer 24/7 security and video surveillance services. But, it is not possible to be protected from all the potential insured incidents. Insurance policies can ease anxiety in the event of an unplanned event in an overseas country.
