The recent spate of falling aluminium windows has heightened public awareness of the need for household third-party liability insurance cover.
In view of the growing consumer concern, the Consumer Council has completed a timely survey on a total of 26 household contents insurance plans provided by 14 insurance companies.
The information collected is as diverse in coverage as it is baffling to the consumer public in the choice of this insurance service.
The survey showed variances in the level and payment of premium. For instance, in the case of a flat less than 500 square feet (gross floor area), the premium could vary from $400 to $1,284 per year, depending on the coverage and sum insured.
In general, a comprehensive insurance package of this type should cover, amongst others, loss or damage of household contents such as furniture and decorations, electrical appliances and kitchen utensils, clothing and personal valuables, as well as liability to the public.
Nevertheless, consumers should take note that the fixtures and fittings that come with a newly completed residential unit such as flooring, kitchen cabinets and gas water heater, are generally excluded, except if improvement has been made by tenant/landlord after occupation of the premises.
The maximum coverage for household contents varied vastly from $300,000 to $1.5 million per year, or $5,000 to $150,000 per article, and for valuables within home, from $3,000 to $20,000 per article.
Careful consideration should also be given to the excess per claim in an insurance policy which could be relatively high for damage or loss caused by water damage, landslide and subsidence.
For instance, the excess for water damage, e.g. burst of water pipe or seepage of water, due to tropical cyclone warning signal number 8 or above or black rainstorm warning signal, the excess per claim could range from $500 to $3,000, or as high as $5,000 for buildings over 25 years old.
Also included in the cover are personal accidents due to fire or burglary at home, and personal possessions such as loss of cash due to theft, and unauthorized use of credit cards; but theft by domestic helper, however, is not covered.
Without exception, all the 26 insurance plans surveyed provided third-party liability cover for owner/occupier.
The maximum cover ranged from $1 to $10 million per year. Some of the plans extend the owner's liability cover to the common areas, provided that the policyholder is the owner of the insured property.
Most plans provide also worldwide cover, subject to Hong Kong jurisdiction, against any claim for bodily injury or property damage resulting from the negligence of policyholder and his/her family members.
Consumers are reminded that in household contents insurance inclusive of public liability cover, policyholders are expected to take reasonable care and maintenance of their property to prevent or minimize loss, damage and accidents resulting in injury or death to the public.
Referring to the recent spate of falling aluminium windows, the Consumer Council has called on owners' corporations, property management companies or any person or body charged with the duty of building management to take appropriate action.
As a matter of urgency, they could make arrangements for qualified contractors to check the safety of aluminium windows at common or public areas, and also to remind their residents to carry out similar inspection.
Consumers are strongly urged to check and maintain aluminium windows including the concrete surround as the lack of regular checks and proper maintenance is one of the many possible causes of accidents.
Take extreme caution to avoid exerting extra pressure to the window while cleaning for that may cause the bar hinges to be over-stressed as evidenced in recent accidents. And do not hang objects or laundry on the window causing additional load on the bar hinges.
Lastly, owners are advised to appoint only qualified contractors to carry out any installation or maintenance of aluminium windows.
In choosing household contents insurance plans, consumers will do well to make a checklist of the items and valuables of household contents to avoid being over or under insured. Under insurance may result in under compensation in the event of claims.
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