Coverage
Thailand Fire Insurance Protection
Fire Insurance only covers damage to the physical structure of the insured property. Intangible factors of the property which may impact the sale price, including lot size or location, cannot be covered under this type of insurance.
As such, Fire Insurance only covers the rebuilding costs of the structure. Even in a total loss situation. Many banks and mortgage lenders do not clarify this detail and may request that the outstanding (or full) mortgage balance is insured under the insurance.
Determining the rebuilding costs for a property can be complex, and may require an expensive survey. Even if a survey is undertaken, it is normal for insurance companies writing fire insurance products to refrain from advising on a total sum insured under the policy.
Fire insurance may be purchased on most types of property – this coverage is not restricted to residential structures, such as apartment buildings. In fact, many businesses operating warehouses or dangerous equipment may opt to purchase fire insurance.
