Imagine after years of hard work, you finally have enough savings to purchase your first home. You succeeded in securing a mortgage and getting Fire Insurance for your place. Then out of nowhere, a volcano rises from the ground and erupts just as an earthquake shakes the pharaohs out of their eternal slumber. Your home unfortunately falls victim to these peculiar occurrences… but wait, there’s more! After your home is damaged by the fire and explosion resulting from the earthquake and volcanic eruption, the remaining contents of your place are ransacked by thieving opportunists.
Staring at the mess Mother Earth made and the vile nature of humanity, you can’t help but wonder: does my Fire Insurance cover the losses caused by the above disastrous events?
The short (and absolute) answer to this question is no, these are not covered by Fire Insurance.
You might be thinking, “Well I live in Hong Kong and there is no way something this ridiculous will happen!” Probably true, but still, you should know what exactly your Fire Insurance covers just in case something absurd does happen!
OneDegree Fire Insurance Policy is clear and concise, with no hidden terms and conditions. All are listed out for your viewing convenience:
| What’s Covered | What’s Not Covered |
|---|---|
| Any loss, destruction or damage caused by: 1. Fire 2. Flood 3. Lightning 4. Explosion of boilers or gas used for domestic purposes only 5. Any Extra Peril specified in the Schedule | Damage caused, directly or indirectly, by: 1. Fire or explosion resulting from earthquake, volcanic eruption or other convulsion of nature 2. Theft during or after the occurrence of a fire 3. Explosion other than of boilers or gas used for domestic purposes only 4. Any Extra Peril specified in the Schedule |
Now that you have a basic understanding of what’s covered and not covered, here’s a little pop quiz for you: If your windows were broken during a typhoon, is the damage covered by your Fire Insurance?
The answer is Yes… and No!
Simply put, YES to original windows, and NO to modified windows.
If the windows are original to the apartment before moving in, it is covered by Fire Insurance, which pays for the repair cost of windows damaged by typhoons. If the windows are later modified or renovated by yourself, then it is covered by Home Insurance instead of Fire Insurance.
As you can see from this example, Fire Insurance covers the building structure, including walls, windows, ceiling, floor, pipes and the property’s ORIGINAL fixtures and fittings. When these are damaged by fire, typhoons/windstorms, explosions, or other covered events, your fire policy will help cover the repair costs! It is also important to bear in mind that the beneficiary of Fire Insurance is your mortgage bank, not the homeowner.
Looking to purchase Fire Insurance for your home? OneDegree only charges 0.038%* of the insured amount for Fire Insurance each year! If you find the same product at a lower price, we will refund the difference.^
* Does not include insurance levy.
^ If you find the same product at a lower price in the market, we will refund the difference. However, our lowest price guarantee only applies to Fire Insurance products with the same coverage and general terms as OneDegree Fire Insurance, and the price must be open to the public and does not include any discounts, deductions or waivers.