Choose home insurance from Rabbit Care

A home is a large asset and holds great emotional significance for many people. Protecting it is something that should not be overlooked. One important tool to help manage the risks to your home is home insurance. So, the popular question is, is home insurance necessary? The short answer is "highly recommended." But whether it is "necessary" depends on each individual's specific circumstances.

• In the case of having a home loan

If you take out a home loan from a financial institution, most banks will require you to purchase at least some form of home fire insurance. This guarantees that if your home is damaged by a fire, you'll still receive your money back. However, home fire insurance typically only covers damage from fire, lightning, and certain types of explosions, which may not be sufficient for other risks. Considering additional comprehensive home insurance is a smart choice for broader coverage.

• In the case of a debt-free house

If your home isn't encumbered by a bank, you're not legally required to purchase any home insurance. But ask yourself: if an unforeseen event like a fire, flood, or severe storm were to cause damage, would you have the financial means to repair or completely rebuild your home? Home insurance acts as a tool to transfer this significant financial risk to the insurance company, with premiums significantly lower than the potential damage. Having home insurance is like buying peace of mind and security for your valuable assets.

• Necessary factors

Additional factors considered when considering home insurance include: Is the home located in an area prone to natural disasters (home insurance is often flooded, near fault lines, therefore home insurance is required for earthquakes, storm areas)? How much is the value of the home and its contents worth? And how much risk can the homeowner accept for the financial damage that may occur?

Therefore, while home insurance may not be mandatory for everyone (unless you have a mortgage), given the high value of your home and the risks it poses, it's a worthwhile investment to protect your assets and reduce your financial burden in the event of a catastrophic event. Therefore, Rabbit Care strongly recommends it.

The coverage limits of home insurance vary depending on the type of policy and plan chosen. However, in general, home insurance coverage can be divided into the following main types of coverage:

1. Damage to the building (house)

• Basic perils: fire, lightning, explosion (usually included in basic home fire insurance)

• Home Insurance Natural Disasters: Windstorms, Flood Insurance, Earthquake Insurance, Hail (often part of comprehensive home insurance or as additional coverage). See next section for details.

• Water damage: Damage from water leaks, broken pipes, water overflow from water tanks (excluding external flooding)

• Other perils: such as aircraft perils, smoke perils, riots and strikes (depending on the policy)

2. Damage to property within the home

Home insurance covers furniture, appliances, clothing, and other personal items inside the home against perils specified in the policy, such as fire, flood, theft, etc. The coverage limit for contents inside is usually separate from the home itself, and there may be exceptions for certain types of property, such as cash, gold, antiques, original documents, etc., for which additional coverage may be required.

3. Theft

Home insurance covers damage to the home caused by a break-in and loss of property within the home due to burglary, robbery or burglary. It usually includes conditions regarding traces of a break-in.

4. Liability to third parties

Covers damage to the body or property of third parties that occurs within the home and for which the homeowner is legally liable (e.g. a friend comes to the house and slips and falls, or a tree branch in the house breaks and hits a neighbor's car).

Remember: It is most important to carefully read the details of the home insurance policy you are interested in, as different companies and plans may have different coverage limits, exclusions, sub-limits, and deductibles. Understanding these terms will help you know exactly what your home insurance policy covers in the plan you choose.

Home insurance coverage for natural disasters is a key factor that differentiates comprehensive home insurance from basic home fire insurance. It generally covers damage to the home and its contents caused by the following natural disasters:

1. Windstorm: Covers damage caused by direct wind, such as a collapsed roof, damaged walls, or fallen trees (usually with conditions regarding minimum wind speeds).

2. Home Insurance Flood: Covers damage from water overflowing, overflowing, or seeping into the home from outside water sources such as rivers, canals, or heavy rain that prevents drainage.

3. Home Insurance Earthquake: Covers damage to your home's structure and contents caused by earthquakes.

4. Hail Damage: Covers damage caused by falling ice (hail), such as roof penetration, broken glass.

Choosing home insurance that provides adequate natural disaster coverage is therefore crucial, especially if your home is located in a high-risk area.

Earthquake home insurance coverage is part of the natural disaster coverage in a comprehensive home insurance policy or may be an additional peril purchased separately.

• Coverage: Compensates for damage to the structure of the building (house) and the contents inside as specified in the policy, caused directly by the shaking of an earthquake, including any subsequent damage caused by fire following an earthquake (if fire is a covered peril).

• Importance: Although Thailand is not in a zone with as strong earthquakes as some countries, there is still a risk in some areas (such as the North and West) and earthquakes from neighboring countries can have an impact. Having home earthquake insurance helps increase peace of mind.

If homeowners are concerned about earthquake risk, Rabbit Care recommends making sure their home insurance plan includes earthquake coverage and has appropriate limits.

Home flood insurance is another important natural disaster protection in Thailand, as many areas experience frequent flooding.

• Coverage: Compensates for damage to the house and property inside (as specified in the policy) caused by water that overflows, floods or overflows from public water sources such as rivers, canals, lakes, or caused by heavy rainfall that floods and flows into the building.

• Difference from "Water Damage": "Flooding" home insurance must be separated from "Water Damage", which refers to water leaks from water pipes inside the house or water overflows from water tanks, which are usually basic coverage in most home insurance policies. However, flooding home insurance focuses more on water from outside.

For those living in flood-prone areas, it is essential to carefully review the terms and conditions of your home flood insurance and choose a plan that offers the highest possible coverage.

Many people misunderstand that home insurance will pay a lump sum when the homeowner dies, like life insurance. This is incorrect. Home insurance covers the "property" (the house), not the "person" (the homeowner).

So, what should you do with your home insurance if the homeowner dies?

1. Policy remains in effect: When the homeowner (insured) dies, the home insurance policy will continue to cover the house for the remaining term, as long as premiums are paid.

2. Notify the insurance company: The heir or executor of the estate should notify the insurance company of the insured's death as soon as possible, along with supporting documentation such as the death certificate and a court order appointing an executor (if any).

3. Change of Beneficiary/Insured: Depending on the insurance company's policy and the legal status of the property, an heir or executor may apply to change the insured's name on the policy to the heir who will receive the home title, or to leave the policy in place until the policy expires.

4. Payment of premiums: If coverage is to continue, the heir is responsible for paying the premiums as scheduled.

5. Insurance Claim (If the house is damaged after the insured's death): If damage to the house occurs (e.g. fire, flood) after the insured's death, the legal heir or estate administrator can proceed with the claim (insurance claim) as usual by presenting evidence of being an heir or an authorized estate administrator to accompany the claim.

Therefore, home insurance in the event of death does not pay compensation for the death, but rather ensures that the home continues to be covered. Heirs must report the matter and manage the policy correctly.

Home fire insurance is the most basic form of home insurance and is usually required by financial institutions when applying for a home loan. What coverage does home fire insurance provide? Basically, it provides more limited coverage than comprehensive home insurance, as follows:
 

1. Main risks covered:

• Fire: Includes damage from smoke and water used to extinguish the fire.

• Lightning: Direct damage to the home and some of its contents (e.g., electrical appliances, may be limited or not covered at all, see details).

• Explosion: Explosion of cooking gas or other causes as specified in the policy.

2. What is usually covered:

• The structure of the building (house): serves as collateral for the bank. The coverage amount is usually equal to the loan amount or as agreed upon.

• Home Property: Basic home fire insurance may not cover home property at all or may cover very low amounts.

3. Things that are usually "not" covered (must be purchased separately or are covered by comprehensive home insurance):

• Natural disasters (home insurance: floods, storms, earthquakes, hail)

• Water hazard (internal water pipe burst)

• Threat of theft

• Liability to third parties

• Temporary accommodation rental fees

In summary, home fire insurance is an important first line of defense, especially against fire damage. However, if you want coverage that covers other potential risks to your home, upgrading to, or purchasing, comprehensive home insurance in addition to, home fire insurance is a great idea.

The price of home insurance or the premium (Premium) of home insurance is not fixed, but varies. The main factors that affect the price of home insurance include:

1. Sum Insured: The most important factor is the amount of coverage you need for

• House (building): Calculated from the estimated new construction cost (excluding land price) or as agreed with the insurance company.

• Contents: The total value of the furniture, appliances, and other items within your home that you want covered.

• The higher the insured amount, the higher the premium and price of home insurance.

2. Location and risks:

• Natural disaster risk areas: Homes located in high-risk flood, earthquake, or severe storm areas will have higher home insurance premiums.

• Proximity to Fire Station: Homes located near fire stations may receive a discount on their insurance premiums.

• Environment: For example, being near a fuel source or industrial plant may also affect your insurance premium.

3. Characteristics of the building:

• Materials used: All concrete houses (1st floor) are usually cheaper than half concrete houses (2nd floor) or all wooden houses (3rd floor) because they have different fire risks.

• Building Age: Very old buildings may have higher premiums or stricter warranty conditions.

• Number of floors, structural complexity

4. Coverage Scope: Policy Type: Comprehensive home insurance (covers multiple risks) is naturally more expensive than home fire insurance.

5. Deductible: This is the amount you are responsible for before your insurance starts paying out. If you choose a high deductible, your home insurance premiums will usually be lower, but you will have to pay more out-of-pocket when an accident occurs.

6. Security measures: Installing security devices such as burglar alarms, smoke detectors, and fire extinguishers may help you get a discount on your insurance premium.

7. Claim history: If you have a history of frequent claims, this may affect your insurance premium for the following year.

8. Insurance company policies and promotions: Each company has different pricing structures and promotions.

Knowing these factors will help you understand why home insurance prices vary and help you better compare home insurance options.

The question of whether  home insurance  is tax deductible is another frequently asked question. The answer is that, in general, home insurance and fire insurance premiums, which cover damage to the property (house), "cannot" be used to reduce personal income tax in Thailand. This is because home insurance premiums are considered property protection expenses and do not qualify for personal income tax deductions under current law.

When considering purchasing home insurance, comparing and purchasing through a trusted online insurance broker like Rabbit Care is a worthwhile option, as it offers several advantages that facilitate convenience and increase value, including:

1. Comparison Center:  Rabbit Care is a platform that brings together home insurance plans from many leading insurance companies in one place, allowing you to quickly and conveniently compare home insurance coverage and prices without having to waste time contacting each company individually.

2. Convenience:  Compare, view details, and make purchase decisions for home insurance easily online, 24/7, no matter where you are. This saves you time and eliminates complicated processes.

3. Informative decision-making:  Platforms often present each plan's coverage information clearly, organized for easy comparison. This helps you understand the differences between each home insurance plan and choose the one that best meets your needs.

4. Expert Advice:  Rabbit Care has a team of experts ready to provide advice and answer questions about home insurance. If you're unsure which plan to choose or need further advice, please contact us for a consultation.

5. Promotions and Special Offers:  Rabbit Care often offers special promotions or discounts that help make your home insurance premiums even more worthwhile.

6. Multiple payment options:  Often offer flexible payment options such as credit cards or bank transfers.

7. Claims Assistance:  Rabbit Care staff are happy to provide advice or assistance in the insurance claim process, which is very helpful when the unexpected happens.

In summary, purchasing home insurance through Rabbit Care is an option that makes finding the right home insurance easier. With efficient home insurance comparison tools, convenience, and potentially better deals, you can find the coverage you need at the right price.