FAQ

Building Insurance protects you against the cost of repairing or replacing the damage or loss to the physical structure of a property (e.g., original floors, ceilings, walls, pipes, doors, and windows) arising from fire, lightning, flooding, typhoons, etc. It also includes the coverage for permanent fixtures and fittings within the residence, including bathroom suites, fitted kitchens and built-in furniture, subject to the insured’s policy terms.

With Building Insurance, you safeguard the building structure of your property from damage and ensure coverage for the total reconstruction if a disaster occurs.

Property Management Company: If the building deed stipulates that the property management company is required to obtain Building Insurance, it is essential that the company fulfils this obligation by securing insurance that provides adequate coverage.

Company or Individual Property Owners: Regardless of whether the property is owned by a company or an individual, it is advisable for the owner to obtain Building Insurance to safeguard against the risk of property loss. If the bank mandates Fire and Perils Insurance as a condition of a mortgage loan, the owner is responsible for ensuring that the Sum Insured is sufficient. Typically, the bank will specify the required Sum Insured amount. Should the property management company have already acquired Fire and Perils Insurance for the building, the owner should ensure that this coverage aligns with the bank’s requirements; if not, additional Fire and Perils Insurance must be purchased.

While mortgage loans typically require Fire and Perils Insurance to protect the interests of the lending bank, Regional Insurance strongly advises property owners to consider obtaining this insurance even in the absence of a mortgage. Such coverage helps protect against financial losses resulting from damage to the building structure due to incidents like water damage and fire hazards. Regardless of mortgage status, purchasing Fire and Perils Insurance is a prudent choice for effective risk management.

Furthermore, even if tenants hold Home Insurance, certain parts of the property including facilities and installations remain the owner's responsibility. Therefore, securing comprehensive Building Insurance allows owners to better protect themselves from potential financial losses, offering peace of mind for both owners and tenants. This approach ensures that the property is fully protected in the event of an unforeseen incident.