| About Us | Newsletter | Youth Support | Career | Activities | Contact |

Newsletter

2007 2nd Edition (Other Editions)

(A) Managing the Exposure to Catastrophe

Most of us should be able to recall Typhoon York which hit Hong Kong in September 1999, causing insured losses of approx. $500 million and economic and uninsured losses being many multiples of this. Our residents are affected by the South Asian tsunami (2004) when holidaying in the region. Although not classified as a natural catastrophe, SARS and the ongoing threat of avian flu are still very fresh in our minds.

Are we adequately prepared for such an event and its effect on our daily lives and businesses?? How quickly can we recover and get back to “normal”?? This is an impossible question to answer with any degree of confidence.

There are ways to reduce such impact. Risk managing such as building our homes and commercial buildings to withstand a certain level of earthquake. Insurance is a very useful financial tool that helps to mitigate the financial impact of natural catastrophes when they inevitably hit. Insurance products can cover financial losses to our properties, business interruption, costs associated with physical injuries or deaths, liability issues, recovering travels costs due to delay or cancellation.? As a consumer, it is always worth to critically assess how catastrophes could affect your life, business and lifestyle by discussing with your insurance adviser.

(B) Household Insurance

Everyone wants a comfortable home. Home is not only a place for taking rest, it is also a place for your beloved family and storage for your precious stuff. Let us imagine, if your belongings in your home were stolen, destroyed by a fire or facing other threats without any protection, will you feel good?

Household insurance is generally divided into two parts namely “Building Structure” and “Household Contents”. Owing to this, many people do not understand or even misunderstand the coverage of household insurance.

Building Structure Insurance:
Usually, owners are requested to purchase Building Structure Insurance for protection of their properties against unexpected loss when they apply for mortgage loan. This insurance plan will pay the full cost of rebuilding your home after an insured accident. Building structure includes walls, floor and ceiling, etc.

Household Contents Insurance:
It covers you and your family members against accidental loss of or damage to household contents and personal valuables occurring within insured properties. The contents and personal valuables include furniture, electric appliances, jewelry, watches, clothes and money, etc.

However, you have to understand the coverage and the claim procedures before applying for a household insurance.

Indemnity Policy:
Under “Indemnity”, every insured object will be covered with deduction for depreciation. Insurance company will only pay the cost for restoring the insured objects to the original condition just before the loss.

Reinstatement Policy:
Reinstatement Policy also called “New for Old” Policy. Under “Reinstatement Policy”, insurance company covers insured items without deduction for depreciation.

Although the coverage of Household Insurance is very comprehensive, it has several exclusions.

For Instant, most policies may cover water damage caused by bursted of the water pipe.? But it does not include the cost for repairing the burst water pipe itself.