Household Insurance 家居保險
Household insurance mainly protects buildings and contents, with buildings-only, contents-only or combined cover available. Buildings commonly have specified perils cover, such as fire, extra perils and theft; contents commonly have all risks cover, subject to exclusions. Contents may include belongings of permanently resident family members and resident domestic helpers whose property is not otherwise insured. Some insurers provide new for old settlement, with exceptions such as clothing and footwear.
Extensions may cover contents temporarily removed within the stated geographical area, contents being moved to a new home, replacement locks following lost or stolen keys, and frozen food spoiled by refrigerator breakdown. Architects’ and surveyors’ reinstatement fees may also be covered. Alternative accommodation for an insured occupier, or lost rent for an insured landlord, following insured damage making the home uninhabitable is pecuniary cover. Other features may include private third-party liability in Hong Kong, a lump sum personal accident benefit for death caused by fire or thieves, and tradesperson referrals; helpers’ liability cover applies while working, while liability as a part-owner of common areas needs express cover and provisions addressing overlapping policies.
Common exclusions include war, riots, nuclear risks and consequential loss apart from the accommodation or rent extension. Unoccupancy conditions need attention: a policy might require advance written notice of an expected absence exceeding 30 consecutive days and suspend theft and water escape cover involving washing machines and similar equipment after that period; 30 days is illustrative, not a universal deadline. All risks property cover carries excesses, and certain other perils may also have excesses; voluntary excesses can attract premium discounts.
Traditional premiums use the value of buildings, excluding foundations and land, and/or contents, with contents normally attracting a higher rate. Where the premium uses an insured-selected sum insured, an average condition applies: if that sum is 80% of the value at risk when the loss occurs, payment is limited to 80% of the loss and cannot exceed the sum insured. Alternatively, cover with liability limits and premiums based on gross floor area has no average condition, allowing insured losses up to the applicable limit; specified item limits may be increased for an additional premium.
Domestic Helper Insurance 家傭保險
Domestic helper insurance packages the employer’s liability towards the helper with employee benefits for the helper. It can be bought separately or as optional cover under a household policy. Common components include employers’ liability, medical expenses, repatriation expenses, personal accident benefits and public liability; a flat premium is charged per helper.
Repatriation expenses cover the cost of returning a helper to their home country when physically incapable of continuing employment, or returning their remains following death. Public liability concerns the helper’s legal liability towards third parties in Hong Kong, which must be distinguished from the employer’s liability towards the helper.
Some policies offer a temporary domestic helper allowance, such as a daily cash subsidy to the employer after the helper has been in hospital for over 3 days; this period is illustrative and the policy determines the trigger. Other possible benefits include replacement costs following departure without notice, disability or death, and the employer’s financial loss caused by the helper’s infidelity.
Each section retains the limitations and exclusions appropriate to its cover. Personal accident exclusions may include specified sports, suicide, childbirth and pregnancy; medical exclusions may include pre-existing conditions, cosmetic surgery and routine examinations. An expense being a real loss to the employer does not by itself establish a claim under the relevant section.
Travel Insurance 旅遊保險
Travel insurance packages protection against unforeseen problems when travelling outside Hong Kong. Necessary medical expenses arising from illness or accidental bodily injury may be reimbursed, alongside daily hospital cash benefits and personal accident benefits. Each section has its own claim requirements: payment of medical expenses does not establish entitlement under a disability benefit, and partial permanent functional loss does not satisfy a definition requiring total loss of use.
Cancellation concerns a trip that cannot begin because of a specified peril, including travel payments already made that cannot be recovered or amounts that must still be paid. Curtailment concerns a trip already begun outside its place of origin that must unavoidably end early because of a specified peril, covering lost prepaid fares or accommodation and additional return costs. A red or black Outbound Travel Alert issued by the Security Bureau for the destination may be a specified peril; cancellation cover may require issue within a stated period before departure, for example 7 days.
Other common benefits include all risks luggage and personal effects cover, personal money lost through theft or another covered event, replacement travel documents and related travel or accommodation costs, personal liability, and emergency evacuation or repatriation services. Flight delay cover may pay a specified amount, while baggage delay cover may reimburse baggage recovery costs or essential clothing and toiletries. Both may have a delay threshold, for example over 6 hours, rather than covering every brief delay.
Plans mainly differ by sums insured, liability limits and benefit amounts. Premiums reflect geographical area, trip duration and the number of people covered; frequent travellers may buy annual policies. Applications are usually simple, with little individual underwriting. Travel agents may hold master policies, while customers receive certificates outlining the main cover. Each section retains relevant exclusions, such as liability arising from motor vehicle use under personal liability cover, and most sections are likely to carry an excess.
Commercial Combined Policies 商業保險組合保單
Commercial combined policies place several types of cover, traditionally bought separately, in one document and are often designed for a particular insurer or client. Each section of a combined policy is separately underwritten and rated. A package policy instead has predetermined cover restrictions, sums insured and liability limits, with a different rating structure; a single document alone does not distinguish the two.
A combined property and pecuniary policy commonly brings material damage and business interruption together on an all risks basis. A combined liability policy typically includes public liability, products liability and employees’ compensation liability; clients may also request directors’ and officers’ liability or professional liability. Liability cover does not itself insure damage to the business’s own property.
Combined umbrella-type cover can span property, pecuniary and liability risks and is tailored to the insured’s requirements. Its cover and restrictions therefore cannot be assumed to be uniform. Alongside the convenience of one document, the insured may expect overall premium savings, although savings are not guaranteed.
The wording should clearly establish that each section forms a separate contract. Separate underwriting and rating do not establish this by themselves: if the policy is treated as one contract, breach of a term apparently confined to one section may affect claims under others. Warranties need particular attention because their operation does not depend on materiality or a causal connection between the breach and the loss. [IA study notes, section 1.3.4](https://www.ia.org.hk/en/supervision/reg_ins_intermediaries/files/P2_2022_StudyNotes_Eng_2023corrigendum.pdf#page=53)
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