Thread: Home Insurance

Peter, I'm curious. What loss is your home covered for? Does it include flood, fire, earthquake, theft, and liability? Are contents included, and at what percentage of the overall policy? Is an inventoried rider required to cover valuables such as jewelry, fine arts and antiques?

To whom is the policy issued, the land certificate holder, or you?

We have no casualty/property insurance on either of our two houses, as I could never find an adequate carrier. Things change in Bali, so if there is a reasonable carrier, I would love to learn more too.

i shopped around for a bit a few years back and went with Allianz. i wanted to go with a reputable international insurer.

my main policy (aka PAR for property-all-risks) covers the building and contents for fire, lightning, ..., riot, malicious damage... wind/water....landslide, burglary. it runs about .2% per annum of the insured value.

i also have a addendum policy for earthquake/volcano/tsunami. which runs for about half of the above.

the guy who came out was english, and did not try to push a really high valuation (which is good).... but one that was realistic and practical.

email is general.denpasar@allianz.co.id

i'd assume that iof there are significant valuables, they might have to be registered with them before hand... but the agent best clarify that.

my policy was issued in my name, not the land cert holder.

disclaimer: no claims made yet so no way to assess this part of the service.

An annual premium rate of .2 percent runs 2 million a year in premium for a house valued at 1 billion rp, or roughly $100,000 US. At .3% for more inclusive insurance, that would be about 3 million a year, again for a house valued at US $100,000. That is not bad, and in line with rates expected in the West. Allianz, as you say, is a well recognized and regarded company.

It seems as though Bali has been professionally evaluated on risk potential by knowledgeable actuarial/underwriters. Too bad in a way, as I always considered this as a “fall back” position if my current endeavors didn’t work out.

A key point to mention for other readers, is that the value of land is NOT considered in insuring property. Homeowner's insurance covers loss to the erected structures, including out buildings, and their contents...normally deemed as usual contents. Contents are generally covered at one-half of the coverage for the structures. On some policies, this may be less. If their value is higher, then normally a separate rider is required, along with additional premiums, to cover them.

Another point worthwhile making is that casualty/property insurance does not allow for one to be either under, or over insured. This is due to the formulas the adjusters have to rely on when processing claims.

It’s also important to keep your insurance up to date with current construction costs unless your insurer automatically adjusts that year to year, and with slight increases in annual premiums.

Many thanks for your valuable information.

insightful as always roy. ... many costs are associated with petrol here. thus as petrol has been raised a few times in the last year (by large amounts like 90%)... construction materials and even labor go up in price as well. petrol is a huge inflationary marker for everything.

i had a small renovation quoted to me in sept 05. there was a month delay due to some silly reason (not my reason). the gov't hiked petrol prices in oct/nov. and in dec, the contractor backed out of the quote and revised the job quote upwards by over 50%.

so do really take note of Roy's caution to "keep up to date with current construction costs"

Roy and Grastaman thanks for your reply. Roy my policy is as per grastaman's and also with Allianz via Asia life. I have been slack though and haven't keep up with the rising costs and will have to up my policy this year ,thats why I was curious to see if there were any other companies operating in Bali. Regards Peter

Thank you very much for the informative post Roy!!!

Matur Suksema,
Bli Gede

have you checked the small letters? How much do you have to pay first evenso you are all risk insured. We found out that the insurance is here very different than the one we had in Aussie, We were all risk insured and the insurance co. paid everything when we had a clain. Here we had a severe flood. The 15mill we had to pay first.
jogry

Morning Folks

[quote="Roy"] That is not bad, and in line with rates expected in the West.

I don't know about other places but the West I'm from, Florida, is good deal more expensive as it is exposed to the excessive attention of Ma Nature. Not an issue here, ha ha. Oops, I'm sorry m'am

Jorgy, if your homeowner’s insurance includes a deductible, which is what you are discussing, I sure hope it isn’t in fine print, as it would be a major policy provision and any reputable agent would be sure to fully discuss that provision with any prospective policy holder.

DCC, you make a good point. It’s odd, in a way, how infrequently Bali is subjected to severe weather. It’s also odd how infrequently major fires occur in Bali. If I was underwriting property-casualty insurance polices in Bali, I would consider Bali to be a dream come true!