Property insurance in Thailand is feasible but not obligatory and is your decision to make. In this article, we’ll discuss all the aspects of real estate insurance in the kingdom.
Property insurance will help you to not be alone when there is a problem: e.g., if your property is destroyed by a natural disaster or third parties. Natural disasters do not occur in Thailand as often as in many other countries in Asia, but floods do occur occasionally in many regions of the country. There are also forest fires in the north. In 2004 Phuket was hit by a tsunami. To not worry about what losses you may incur due to nature or the actions of ill-wishers, you can insure your property abroad.
- What Kind of Property Can Be Insured?
- Insurance Process
- Insurance Costs
- What You Should Pay Attention To
- Apartment Insurance
- Property Investments
- Rental Property Insurance
In Thailand, there are no restrictions on insurance regarding property type. You can insure both a house and an apartment, whether owned or rented.
If you decide to purchase an insurance policy, contact the insurance agency and an expert will visit you. This person will evaluate the property, offer insurance terms and conditions, and draw up a contract on the agreed terms. Read the text carefully before signing. If necessary, ask for a translation of the agreement into English or Russian. Never sign documents that you do not understand.
In large resort cities where Russian-speaking communities exist (for example, Pattaya, Phuket, Koh Samui), insurance companies may hire Russian-speaking experts to give you all the details of the insurance they offer. If you do not speak English well, and there is no Russian-speaking agent in the company, then you’re advised to hire a translator.
The cost of the insurance premium is calculated in different ways. Some agencies charge a fixed amount per year, while others may charge a percentage of the property value. The price of insurance can start from as little as 600 baht per year. A policy with maximum coverage of damages up to BHT 10,000,000 will cost about BHT 20,000 per year.
Each contract specifies the maximum coverage amount. If it is significantly less than the insured property value, you might be disappointed when an insured event happens. It is your choice whether to take out sufficient/insufficient insurance coverage.
In Thailand, there are 4 kinds of coverage for private homes:
- Construction and structures. Insurance is paid out in the case of damage to the floors, walls, and ceilings of the building. Compensation is about BHT 20,000 per square meter.
- Finishing, plumbing, and communications. The insurance covers damage to wall and floor coverings, bathrooms, kitchens, and built-in wardrobes.
- Furniture and appliances. This includes all furniture and appliances in the house.
- Personal property. This category includes money, works of art, and jewelry.
Carefully check the insurance category: the payout for the insured event depends on this. You should pay attention to the smallest details. For example, a leak from a neighbor may be recorded as an insured event, but a leak from a roof is not.
Standard insurance does not cover flood damage, even though floods occur annually in many parts of the country. Depending on where your property is located, you should pay special attention to this point. Typically, insurance includes such possible causes of damage from a hurricane, earthquake, explosion, aircraft crash on the insured object, vandalism, and others.
In Thailand, theft is common. It is worth noting that insurance companies treat theft and burglary. If there are no traces of a break-in, then there will be no compensation. The burglary coverage does not usually exceed 10% of the maximum payout amount under the contract.
In multi-apartment buildings, parts of the building structure cannot be insured: walls, ceilings, and floors. You can insure property and liability to neighbors in case you become the source of damage to their property in a fire or leak. Although an insurance policy for an apartment costs much less than private villa insurance, the coverage amounts are quite high. Damage to finishing materials, furniture, and equipment is compensated in the amount of up to 500,000 baht; burglary of an apartment – is up to 200,000 baht; damage to third parties – is up to 2,000,000 baht; personal injury of the insured person – 200,000 baht.
It is recommended to insure not only the property in which you plan to live but also your investment properties.
If you rent a long-term property, you are responsible for the safety of the house, items, furniture, and equipment. To avoid sudden expenses, the rented property can also be insured. The process of obtaining such an insurance policy is similar to the process of insuring your property.
It remains your choice whether to insure your property or not. Natural disasters in Thailand do not occur in every region. Residential settlements are currently better protected. Most management companies offer 24/7 video surveillance and security services. However, it is impossible to protect yourself from all the possible insured events. An insurance policy will relieve stress in case of an unexpected situation in a foreign country.