Real Estate Insurance in Thailand: What You Need to Know
Property insurance in Thailand is available but not mandatory, leaving the decision up to you. In this article, we’ll explore all the key aspects of real estate insurance in the country.
Having property insurance ensures that you aren’t left dealing with issues alone, such as if your property is damaged by natural disasters or third parties. While natural disasters are less frequent in Thailand compared to other Asian countries, flooding does occur in certain regions, and forest fires sometimes affect the north. In 2004, Phuket was struck by a tsunami. To protect yourself from potential losses due to nature or malicious actions, you can insure your property in Thailand.
Content:
- What Kind of Property Can Be Insured?
- Insurance Process
- Insurance Costs
- Important Considerations
- Theft Coverage
- Apartment Insurance
- Property Investment Insurance
- Rental Property Insurance
What Kind of Property Can Be Insured?
In Thailand, there are no restrictions on the type of property you can insure. You can get insurance for both houses and apartments, regardless of whether you own or rent the property.
Insurance Process
If you decide to take out an insurance policy, contact an insurance agency, and they will send an expert to assess your property. This expert will provide insurance terms, conditions, and draft a contract based on the agreed terms. Make sure to carefully read the contract before signing. If necessary, request a translation into English or Russian. Avoid signing any documents you don’t fully understand.
In major resort cities with Russian-speaking communities (like Pattaya, Phuket, and Koh Samui), insurance companies may provide Russian-speaking agents to explain the details of their insurance options. If there is no Russian-speaking agent available and you don’t speak English well, consider hiring a translator.
Insurance Costs
The cost of insurance varies. Some agencies charge a fixed annual fee, while others calculate it as a percentage of the property’s value. Insurance premiums can start as low as 600 baht per year. A policy with coverage for damages up to 10,000,000 baht will cost around 20,000 baht per year.
What You Should Pay Attention To
Every insurance contract specifies the maximum coverage amount. If this amount is significantly less than the actual value of your property, you may face disappointment in the event of a claim. It is up to you whether to choose adequate or insufficient coverage.
In Thailand, there are four types of coverage for private homes:
- Construction and structures – Insurance covers damage to the floors, walls, and ceilings of the building. Compensation is around 20,000 baht per square meter.
- Finishing, plumbing, and utilities – This includes damage to wall and floor finishes, bathrooms, kitchens, and built-in closets.
- Furniture and appliances – Covers all furniture and household appliances in the home.
- Personal property – Covers valuables like cash, artwork, and jewelry.
Carefully review each insurance category, as payouts for insured events depend on them. Pay attention to the smallest details. For instance, damage caused by a leak from a neighbor may be covered, but a leak from your own roof may not be.
Standard insurance does not cover flood damage, even though floods occur yearly in many regions of Thailand. Depending on your property’s location, you should be especially mindful of this. Insurance generally includes coverage for damages caused by hurricanes, earthquakes, explosions, aircraft crashes, vandalism, and more.
Theft
Theft is common in Thailand. However, it’s important to note that insurance companies distinguish between theft and burglary. If there are no signs of forced entry, compensation may not be granted. Burglary coverage usually does not exceed 10% of the maximum payout under the contract.
Apartment Insurance
In multi-apartment buildings, structural parts of the building, like walls, ceilings, and floors, cannot be insured. However, you can insure personal property and liability in case you cause damage to a neighbor’s property, for example, from a fire or water leak. Although apartment insurance is generally cheaper than villa insurance, the coverage can still be substantial. For instance, damage to finishes, furniture, and equipment may be covered up to 500,000 baht; theft up to 200,000 baht; damage to third parties up to 2,000,000 baht; and personal injury up to 200,000 baht.
Property Investments
It's advisable to insure not only the property you live in but also any investment properties.
Rental Property Insurance
If you rent long-term, you are responsible for the safety of the house, furniture, and appliances. To avoid unexpected costs, you can insure rented property, similar to insuring your own property.
Ultimately, the decision to insure your property is yours. While natural disasters in Thailand do not affect every region, many residential areas now have better security, including 24/7 video surveillance and security services. Still, insurance can provide peace of mind in case of unforeseen events in a foreign country.