[Home insurance tips] Frequent extreme weather: Does home insurance cover these 9 common situations?
Lifestyle2024-08-07
5 Mins Read
With global climate change, extreme weather has become the new normal. From Typhoon Mangkhut in 2018 to Typhoon Saola and the ‘Black Rainstorm of the Century’ in 2023, natural disasters have frequently disrupted our lives and posed serious threats to home safety. According to the Insurance Authority's report in December 2023, the ‘Black Rainstorm of the Century’ and Typhoon Saola resulted in a total claim amount of HKD1.9 billion, with over HKD140,000 claims submitted.
As we enter the typhoon season, significant property damage and loss of life frequently occur. Many people choose to purchase home insurance to avoid sudden financial pressure while taking precautions against storms. But what exactly does home insurance cover? Are common issues like leaks, broken windows, or damaged furniture covered? This article will break it down for you!
What is home insurance? How does it differ from fire insurance?
In simple terms, fire insurance only covers the structure of the building, such as floors, ceilings, doors, windows, and walls. Home insurance, on the other hand, covers home contents like valuable items, household appliances, and furniture that are damaged due to accidents. Home insurance also provides third-party liability coverage, protecting the insured and their family members living with them from legal liability for injury to others or damage to others' property due to home accidents.
Common questions about home insurance during extreme weather
Q: Are ceiling leaks or burst pipes covered by home insurance?
A: Generally, home insurance covers personal property damage and the resulting internal damage caused by natural disasters like typhoons and heavy rain. For example, if a typhoon causes water seepage through external walls, the repair costs are typically covered by fire insurance. However, wallpaper damage due to the leak can be claimed under home insurance.
If a burst pipe in your home causes damage to another unit or the building's lift, or if drainage issues in your home cause water to seep into the ceiling of the downstairs neighbour, third-party liability insurance usually covers the compensation and legal fees you may incur. For example, AXA’s SmartHome Plus covers up to HKD20,000,000 for damages caused to third party – such as from a fire or a pipe burst event.
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Q: Are electrical appliances and furniture covered by home insurance?
A: If a typhoon or heavy rain blocks the drainage system and causes flooding indoors, typical home insurance does not cover the cleaning or repair of the drainage system. However, insurance companies usually compensate for home contents damaged by the flooding. For example, AXA’s SmartHome Plus will compensate for accidental loss or damage to furniture, fixtures and fittings, electrical domestic appliances, and personal belongings.
Q: Are the domestic helper's belongings covered by home insurance?
A: Generally, home insurance covers the personal belongings of domestic helpers lost or damaged due to accidents. Different companies have different approaches: some specify a total insured amount, while others list annual and per-item limits for the helper’s belongings. For instance, AXA’s SmartHome Plus indemnifies you in respect of accidental loss of or damage to clothing and personal effects of your domestic helper, and not exceeding HKD1,000 for any one article, whilst such properties are in your home in which such helper(s) is residing with you or any member of your family.
Q: Are valuable items in the home covered by home insurance?
A: Loss of home contents is a primary coverage under home insurance. If valuable items are accidentally damaged, they can be compensated. However, many home insurance policies have deductibles and exclusions, so it's important to check the total coverage and the per-item limit when purchasing. For example, AXA’s SmartHome Plus covers up to total of HKD$600,000 or 1/3 of the home content sum insured for maximum 60 valuable items of up to HKD10,000 per item.
Q: Are items placed on the balcony covered by home insurance?
A: Most home insurance policies do not cover items placed outdoors. However, if items on the rooftop or balcony are damaged by severe weather, some home insurance products include outdoor home contents coverage. For example, AXA’s SmartHome Plus covers outdoor furniture, ornaments and statutes and other similar items that are usually located in the open, with a maximum annual compensation of HKD50,000 and a per-item limit of HKD5,000.
Q: Are glass windows damaged by a typhoon covered by home insurance?
A: If glass windows are directly damaged by a typhoon, such as being shattered by flying debris, this is generally covered. However, if the damage involves the window frame, coverage depends on the frame's origin:
- Original window frame: If the damaged frame is part of the original structure, it is typically covered by fire insurance.
- Self-installed window frame: If the frame was self-installed, whether it can be compensated depends on the specific policy terms.
Protect your home with SmartHome Plus
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Q: If household items are blown outside and injure someone, is this covered by home insurance?
A: In the event of a home accident affecting others, home insurance usually provides third-party liability coverage to alleviate the insured's litigation and compensation costs. For example, AXA’s SmartHome Plus covers up to HKD20,000,000 for damages caused to third party – such as from a fire or a pipe burst event.
Q: If residents in low-lying areas need to evacuate and temporarily relocate due to flooding, is this covered by home insurance?
A: Generally, if a residence becomes uninhabitable due to a No. 8 or higher tropical cyclone signal or black rainstorm warning, home insurance covers related property losses, as well as post-storm repair costs, temporary accommodation, and meal expenses. For example, AXA’s SmartHome Plus provides compensation for up to five days, with up to HKD1,500 per day worth of accommodation reimbursement, if your home becomes uninhabitable due to a Black Rainstorm or a No. 8 (or above) Typhoon.
Q: Are power outages or emergency repair services covered by home insurance?
A: If household appliances malfunction due to extreme weather or if refrigerated food spoils due to a power outage, the related losses can be claimed under home insurance. Some insurance companies also offer 24-hour emergency support services, covering electrical and plumbing repairs, locksmith services, and emergency medical referrals. For example, AXA’s SmartHome Plus offers a 24-hour support service via our Home Assistance Hotline for plumber, locksmith, or electrician referral.
When selecting home insurance, policyholders should carefully read the policy terms to understand the coverage and exclusions, ensuring appropriate compensation and protection when needed.
Protect your home with SmartHome Plus
There is no place like home. Get your home the protection it deserves in just a few minutes, whether you own it or rent it.
Home disaster prevention tips
In the face of extreme weather, strengthening home safety and improving disaster prevention capabilities are equally important. Here are some daily disaster prevention measures and preparations to take before a typhoon:
Inspect walls and roofs
- Regularly check for damage, leaks, or other potential issues, and promptly repair any damaged areas.
Check the drainage system
- Clean drainpipes: Regularly clean drainpipes to prevent blockages. Check drainage holes and floor drains for proper flow.
- Check drainage pumps: If your home has drainage pumps, regularly inspect their operation to ensure they work properly when needed.
Inspect windows and doors
- Check seals: Regularly check window and door seals to ensure they are intact as well as able to prevent wind and rain intrusion.
- Reinforce frames: Check window and door frames for stability, and repair any loose parts.
Preparations before a typhoon
Move outdoor Items (if any)
- Store outdoor furniture: Move furniture and flowerpots from balconies and gardens to indoor areas to prevent them from being blown away or damaged by strong winds.
- Secure large objects: For large, immovable objects, reinforce them to ensure they do not become dangerous in strong winds.
Reinforce doors and windows
- Install windproof devices: Add windproof hooks, tape, or other reinforcements to windows and doors to enhance their wind resistance.
Pay attention to electrical safety
- Power cut measures: Before a typhoon arrives, know how to quickly cut off the power supply to prevent electrical short circuits if flooding occurs.
- Place appliances high: Place appliances susceptible to water damage in higher locations to avoid flood damage.
Stay updated on weather forecasts
- Keep track of weather updates: Regularly check weather forecasts to understand typhoon movements and prepare in advance.
Protect your home with SmartHome Plus
There is no place like home. Get your home the protection it deserves in just a few minutes, whether you own it or rent it.
Prepare in advance for peace of mind
With the increasing frequency of extreme weather, home safety and protection have become more important than ever. Home insurance provides financial support and security in the face of natural disasters and accidents. Regularly review and update your policy, and pay attention to the policy details to ensure sufficient coverage. This not only helps you quickly recover after a disaster but also provides peace of mind when disaster strikes. Additionally, regularly inspecting home disaster prevention facilities and taking preventive measures in advance are equally important. By preparing before risks arise, we can truly achieve peace of mind and protect ourselves and our families.
How can AXA’s SmartHome Plus provide you with protection?
- Tailored coverage: SmartHome Plus offers customised coverage that can be adapted to your specific needs as owner, tenant, occupier and landlord.
- Typhoon & rainstorm coverage: We reimburse your temporary accommodations and outside meals expenses when your home becomes uninhabitable due to a Black Rainstorm or a No. 8 (or above) Typhoon.
- Third-party liability coverage: We cover up to HKD20,000,000 for damages caused to third party – such as from a fire or a pipe burst event.
- Loss of rent cover: Our home insurance covers your loss of rent when the home contents of your leased-out property has been damaged accidentally.
- Emergency support: Enjoy 24-hour support service via our Home Assistance Hotline for plumber, locksmith, or electrician referral.
Insurance plans vary in coverage and are subject to their respective terms and conditions. For detailed terms and conditions of the plan, please refer to the relevant product brochure and policy contract.
No warranty or responsibility is assumed by AXA Hong Kong and our related or holding companies regarding non-infringement, security, accuracy, completeness, adequacy, reasonableness, fitness for a purpose or free from computer viruses in connection with the information and materials provided. AXA Hong Kong and our related companies and holding companies do not accept any liability for any loss, damage, cost or other expense, whether wholly or partially, directly or indirectly, arising from any error, inaccuracy or omission of the information and materials to the extent that such liability is not excluded by law.
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