Insurance is a means for creating stable financial security for you and your family. For just a small expense per year, you can maintain a good quality of life and financial status, even when unforeseen incidents such as fire, earthquake and theft afflict your home. Insurance covers and indemnifies the insured against any damage that may occur, so that there is no need to worry in any situation.

• 1. Home Insurance
• 1.1 Insured properties, such as
  • - Buildings (excluding foundation) such as home, townhouse, semi-detached house, residential shophouses, garage, and minor buildings such as maid’s quarter, kitchen, walls, fences, doors, as well as additional improvements.
  • - Residential apartment such as flat, apartment house, condominium.
  • -  Property within buildings such as furniture, fixtures, fittings, tools and household utensils, electric appliances,music instruements, audio equipments , kitchenware, clothing and other property in the dwelling of the insured.
• 1.2 Coverage means if any damage occurs to the subject insured, insurance policy will indemnify the policyholders against damage as specified in the policy such as:
  • - fire, lightning and explosion
  • - vehicle impact such as house, door, or fence hit by vehicle
  • - aircraft impact or impact from object falling from aircraft
  • - water damage (excluding flood) caused by accidental leakage or overflowing of water or steam
• 1.3 Sum insured means the value of insured property
• 2. Shop insurance
• 2.1 Insured properties, such as
  • - Buildings (excluding foundation)
  • - Property within buildings such as stock of goods, furniture and office equipment.
• 2.2 Coverage means if any damage occurs to the subject insured, insurance policy will indemnify the policyholders against damage as specified in the policy such as
  • - fire, lightning and explosion
  • - windstorm
  • - vehicle impact, hit by vehicle, aircraft impact
  • - strikes
  • - overflowing or bursting of water tank
• 2.3 Additional coverage such as theft insurance, plate glass insurance, money insurance, personal accident insurance, and third-party liability insurance.

• 1 Owners or residents of detached houses, townhouses, shophouses:
  • The home insurance plan is suitable for them as it mainly covers buildings, furniture and home appliances. Additional coverage can be purchased according to your needs, such as coverage against damages from earthquake, flood, and theft. Sum insured amount should cover at least 80% of the total value of home and property within to avoid under-sum insured.
• 2 Housing loan applicants with various banks: including
  • 2.1 Housing loan applicants who still have installment plan obligation with banks.
    • In order to apply for housing loan, banks require the applicants to apply for home insurance. This is to assure the banks that the insurance companies will indemnify them against any debt obligations in case of grave accidents such as total loss of collateral due to house fire. However, since the loan applicants are the one who pay for the insurance premium, most loan applicants choose the insurance plan with the lowest possible sum insured, or insure for the same obligation amount with the banks. This amount is always lower than the real value of the buildings, so that the insurance premium is cheaper. For example, a mortgage loan applicant may be granted a loan of only Baht 700,000 for a house valued at Baht 1 million. As such, loan applicants often take out an insurance policy that offers the sum insured of Baht 700,000 and the value of other assets within the house, such as furniture and expensive electric appliances, is not factored in. When damage occurs, loan applicants will be indemnified for as high as the sum insured amount or less if the sum insured is far lower than the real value of the property. Hence, our recommendation is that the insurance plan should have the appropriate sum insured amount, which is not less than 80% of the total value of home and properties within, both fixed and movable properties.
  • 2.2 Housing loan applicants who nearly or already payoff their obligations.
    • The sum insured amount should be revised to truly reflect the situation. As time passes, properties within the house might change, most will have more value. Hence, this is a good opportunity to find more suitable packages for your house.
  • 2.3 Condominium or apartment resident Normally, juristic persons of condominium or apartment are the one who apply for insurance plan for the buildings. Residents should check with the juristic persons or insurance companies about additional insurance plan for personal properties in their own rooms in order to cover as much as possible.

• Home insurance plans comparison
  Coverage	Rak Baan (Residence)	อัFire Insurance Policy for Residence (Standard)
  Fire, lightning, explosion	✓	✓
  Vehicle impact	✓	✓
  Aircraft impact or impact from object falls from aircraft	✓	✓
  Water damage (excluding flood)	✓	✓
  Temporary accommodation during repair	✓	✓
  Earthquake	✓
  Windstorm	✓
  Hail	✓
  Flood
  Damage to electric appliances	✓
  Theft	*
  Cash (in case of no money insurance)	✓
  Loss of rental fee
  Third party liability
  * Cover only damage to the buildings (excluding fence) caused by theft

• Insurance premium mainly depends on sum insured and risks.
• Sum insured: is determined by the properties value which is assessed from the size, number of floors, and type of the building (such as wooden or half-concrete-half-wooden building). The insurance companies can assess sum insured value for you by using information of building materials and the size of functional area. As for the properties within the building, most insurance companies assess the total value as lump sum amount such as 50% of building value. In case that you have very high value items such as home theatre set or chandelier, you should specify those items in order to increase sum insured amount to cover those special properties, or ask the insurance companies whether those items can be insured or not.
• 2 Risks: insurance companies assess risk from
  • • building material (concrete, wooden) and its fire tolerance
  • • building maintenance system, e.g. is there any fire protection system, is there any flammable items?
  • • building location and its surrounding, e.g. is it located near gas station or not?
  • All these factors are used in risk assessment in order to calculate insurance premium. Customers might get special discount for long term fire insurance contract. Hence, besides being reassured from the long-term insurance policy, customers could also save their expenses.

• When an accident occurs to the insured house and its cause is covered by the policy, insurance companies will indemnify the policyholders against the loss that happen at actual expense but not more than sum insured amount that specify in policy schedule. However, in case of overinsurance or underinsurance, the indemnity is different for both cases. To clarify the concept, please look at the following examples.
• In case of overinsurance, for example, house (excluding land) and assets within has total value of Baht 1 million, but the house owner apply for an insurance policy with sum insured amount of Baht 2 million. When accident happens, insurance companies will compensate as follow:

• Overinsurance
  Actual value of house and assets within	Baht 1,000,000
  Sum insured	Baht 2,000,000
  Case 1: Partial loss
  A house valued at Baht 1 million, partially damaged. Hence, the loss is	Baht 500,000
  Insurance companies’ indemnity	Baht 500,000
  Case 2: Total loss
  A house valued at Baht 1 million, totally damaged. Hence, the loss is	Baht 1,000,000
  Insurance companies’ indemnity	Baht 1,000,000

• * Please note that overinsurance is quite pointless since it does not create real value and benefits no one. Moreover, it also causes higher insurance premium unnecessarily.
• • In case of under-sum insured, for example, your property has total value of Baht 1 million, but the sum insured is Baht 600,000 (or 60% of the real value). When an accident happens, insurance companies are responsible for 60% of the total indemnity and policyholder has to pay for the rest.

• Under-sum insured
  Actual value of 1 building	Baht 1,000,000
  Sum insured	Baht 600,000 (60% of the actual value)
  Case 1: Partial loss
  A house valued at Baht 1 million, partially damaged. Hence, the loss is	Baht 500,000
  Insurance companies’ indemnity	Baht 300,000 (60% of the actual value)
  Case 2: Total loss
  A house valued at Baht 1 million, totally damaged. Hence, the loss is	Baht 1,000,000
  Insurance companies’ indemnity	Baht 600,000 (60% of the actual value)

• 4.1 Procedures in making fire insurance claim
  • In case of loss of or damage to the insured properties, the procedures in making claims are as follow:
  • 1. Notify the insurance companies about the loss of or damage to the properties promptly
  • 2. Take pictures of the loss or damage as evidence
  • 3. Make initial survey and list all the damaged or lost items
  • 4. In case of theft, report to the local police and make a copy of the policy report
  • 5. Maintain the state of the damaged properties and other relevant evidence for the insurance companies to check with claim documents