Fire insurance provides coverage for property damage from fire, lightning, or gas explosion used to generate illumination or for use of habitation.
Types of properties covered by the insurance
- Building structures (excluding foundations) including houses, townhouses, duplexes, row houses, apartments in a block of flats, apartment houses and condominiums, as well as extensions/renovation for inhabitance, such as garages and sub-buildings.
- Contents within the building structures, including furniture, decorative items, fixtures and other assets in the building that are not stated in the exceptions.
The fire insurance policy covers the following:
- Fire but excluding:
- Damages from explosions caused by the fire, except explosions from gas used for illumination or for the benefit of habitation;
- Direct or indirect damages due to earthquakes;
- Damages to the insured properties due to decaying or natural smoldering, self-combustion specifically caused by the property itself, or such property that is under any process in which heat or a drying method is used;
- Gas explosion from gas used for illumination or the benefits of habitation. It does not include damages from gas explosions due to earthquakes;
- Damages from additional perils as explicitly stated in the insurance policy.
The insured can purchase additional coverage for additional perils consists of the following:
If the insured wishes to have additional coverage, he/she can purchase coverage for the following:
- Vehicle perils
- Smoke perils
- Water perils
- Labor strikes
- Malicious damage
- Damage from the use of electrical appliances
What type of assets are not covered?
The following assets, unless expressly stated otherwise in the insurance policy:
- Products under the custody of the insured as a bailee;
- Silver bullion or silver ornaments, gold bullion or gold ornaments, or gems;
- Antiques or objects where the total damages are in excess of 10,000 baht;
- Originals or copies of blue prints, diagrams, drawings, sketches, designs, patterns or molds;
- Guarantees for debts, securities, important documents, postage stamps, revenue stamps, currencies, banknotes, checks, bank account books or any business books or records;
- Dynamos, electric transformers, generators, electric motors, electric control boards, electronic equipment or other electrical appliances that are damaged from overwork or voltage overload or short circuits, including short circuits caused by lightning. In such cases, only the damaged items will be covered.
Criteria used to determine the sum insured and claim payment?
To determine the sum insured and claim payment, the insured is entitled to select one of the two following methods.
- Determination of the sum insured according to the value of replacement of properties (replacement cost valuation) and claim payment according to the value of properties at the time and place of such damage; or
- Determination of the sum insured according to the actual value of properties (actual cash value) and claim payment according to the actual value of properties, which equals the value of new properties minus the depreciation value at the time and place of such damage.
What does property insurance below the actual value mean?
Property insurance below the actual value means that the insured property has a higher value than the sum insured. In this case, if damages occur, the insured is considered self-insured for the difference from the actual value of the insured property. When calculating claim payment, the insured has to proportionally bear a shared portion of the damages. The formula used to calculate the claim payment the insurance company is responsible for in this case is as follows:
What does the insured have to do when damages occur?
When damages occur, the insured must inform the company without delay and must submit the following evidence and documents to the company within 30 days after the date such damages occur.
- The insured must submit a claim letter regarding such damages, listing the lost or damaged property as well as the value of such property at the time of the damage, in as much detail as possible.
- The insured must present, provide, inform, or deliver to the company any evidence and additional items, such as diagrams, details, originals, counterparts or copies of such documents, proofs and statements about the claim, the source or cause of the fire, as well as circumstances causing the damages, as required by the company as is reasonable for such cases.