House insurance.

[dougness]

My wife recently told me that Siam bank wanted her pay three years worth of premiums for what she called fire insurance for 15,000 baht.Doesn't sound right that anyone would have to pay more a years premium.Does anyone else on the forum pay for their house insurance this way.She claims we don't have a choice as the mortgage is held by Siam bank.

[wynnsiensheng]

I haven't come across the particular situation you describe, but I do suspect that the insurance industry in Thailand is only lightly regulated, if at all, when it comes to selling. Two examples that make me think this:

1. My wife was told by an insurance company that the insurance on our car must be renewed six months in advance of it's expiry, subsequently reduced to 3 months in advance when I queried it and subsequently to zero months in advance when I refused to renew until just before expiry.

2. My wife was convinced (by Siam Bank co incidentally) to take out a years health insurance, even though my wife was aware that I had already got insurance for the whole family. In my wife's words, "it was like the sales lady controlled me". This was a sales person in the banking hall of the local branch. Goodness knows what the specific sales pitch was, but my wife ended up believing she couldn't exist without more insurance.

So, I suspect that any thing and everything goes when it comes to trying to get people to renew or take out insurance and various "rules" related to renewal periods are quoted, just in order to meet a particular months sales targets. To be honest, I think it works part of the time. My wife still believes car insurance has to be done 3 months in advance, depsite our not having done it until the expiry month for the last 3 years!

[arjay]

Yes, I suspect it's more a case of sales techniques and inertia, rather than any strict obligation to do so. I've never come across that over here in LOS, and certainly not in the UK (where I was involved in selling insurance), though I don't have a mortgage on a house here.

We do often get approached by sales staff at the SCB bank trying to sell life assurance, and when I point out that for an older person like myself it would be relatively more expensive, they are quick to try and convince my wife that it isn't and that she would get money back. As the person trying to sell it, was the very same person who wouldn't open an account for my wife when we first came to the area, she gets short shift from me.

Dougness re the point you make, I think I would simply tell your bank that you will pay each year's premium as it arises. You could give a number of reasons - e.g.
You may have moved and sold the house by next year.
It may have burnt down before next year.
Why should you be expected to pay that far in advance,- you wont have cover for next year until next year, so why pay for it this year!!
Or, you don't have next year's money to pay next year's premium, until next year (strict budget, pension, limited income type of thing)!!
If they hassle you too much, threaten to insure it elsewhere.

If they try to suggest or infer you are legally obliged to do so, I would stand your ground and call their bluff and threaten to insure it elsewhere or even (say you will) repay the mortgage (I did say "bluff"). I really can't see how there could be any obligation to insure beyond the current year.

[trubrit]

Could it possibly be you have a three year loan on the property? It is fairly normal to insist on both life and buildings cover for the duration of the loan . In fact some lenders deduct the term premium from the advance before you get it .Just a thought .

[dougness]

My wife has had this house for about six years now.We have been married for about three and half.I can't remember the last time she talked about house insurance.I'm going to make a post on Thai visa regarding this matter.

[RLTrader]

Didn't know there was such an animal (House Insurance - got to be hard to burn concrete). As far as car insurance, every year I bug the wife about renewing, she says ok last day. One year I had her call and what she told me was they said can't do now, need to wait til last day. Go figure.

[parrot]

We have insurance on the house and insurance on the contents with MSIG. We pay content insurance annually and insurance on the house every 5 years. Don't know the reasons why. It's been that way for the 10 years we've had insurance with them.

I've never been keen on the bank staff selling insurance. We knew one girl who worked at Siam City Bank and she told us of immense pressure to make insurance sales. It's all commissioned.....that leads me to believe you might be better off dealing directly with a long-standing insurance company.

[UdonExpat]

15,000 baht for 3 years is a very high premium, unless, of course, it's a 10 million baht home.

I just paid 3,264 baht for a one year policy valued at 2.85 million baht.

It's much more than fire insurance. It's 2 million for loss of the house, 500,000 for furniture, and 350,000 for other contents. It also includes 30,000 baht for electrical injury and 15,000 a month for a rental while the house isn't usable. Burglary is limited to 100,000 and it has 3rd party liability for 500,000.

Someone is trying to make a big commission on you.

[arjay]

Udon Expat brings up a good point. It is important to identify/differentiate between house insurance and contents insurance. House insurance meaning BUILDINGS insurance and is sometimes referred to as Fire Insurance..

To me Fire Insurance is the description used many years back and relates only to the house (BUILDING). The Fire/Buildings insurance sum insured should cover the cost of clearing the site and construction of a new/replacement house (in the event of the house being destroyed. The value of the land is not therefore relevant or included. Usually therefore the sum insured and the premium is not high.

Contents insurance covers the furniture, equipment and possessions within the home, and usually generates a higher premium (albeit for a lower sum insured than the house).

Mortgage lenders will usually insist that the buildings are kept insured, in order to protect their security.

Having said all the above, it is very common nowadays for Insurance companies to offer combined buildings and contents insurance policies, usually called "Home Insurance". If you are arranging a "Home Insurance" policy, there will normally be provision to specify how much cover applies to the buildings (alone) (for which a premium is calculated) and how much cover is required for the contents (for which a separate premium is calculated). There are usually different levels of the latter. A combined single premium is then calculated. Sometimes Insurance companies combine the two using bands or levels, to the extent that they don't show separate premiums.

As a guide a combined house and contents insurance policy would likely cost in the region of 3000 - 5500 baht per year, depending on the sums insured. A buildings only policy would cost less.

In conclusion Fire insurance would to most people convey "buildings only" cover. The premiums for buildings only cover are quite low.

[Tafia]

15,000 baht for 3 years is a very high premium, unless, of course, it's a 10 million baht home.

I just paid 3,264 baht for a one year policy valued at 2.85 million baht.

It's much more than fire insurance. It's 2 million for loss of the house, 500,000 for furniture, and 350,000 for other contents. It also includes 30,000 baht for electrical injury and 15,000 a month for a rental while the house isn't usable. Burglary is limited to 100,000 and it has 3rd party liability for 500,000.

Someone is trying to make a big commission on you.

Can I ask who you are insured with?

[wazza]

All the banks and car sales outlets are all agents for the insurance companies , they all get commisions.

Every wonder why after the first year of free insurance with you new car, u get calls from various BKK based agents etc, all being given the tip off on your expiry date. Asking u to transfer the premium to their bank account for the renewal.

There was a thread here ages ago on an agent running off with the car insurance premium, also.

Unless the bank has written in the mortage that u must insure via their agent or rep, then walk, and get a direct quote from the companies. they will provide you with all the policies on the spot, and they will sort out with the banks, for copies etc...

My car insurance is cheaper direct with LMG than with the agents using the same company

[wazza]

All the banks and car sales outlets are all agents for the insurance companies , they all get commisions.

Every wonder why after the first year of free insurance with you new car, u get calls from various BKK based agents etc, all being given the tip off on your expiry date. Asking u to transfer the premium to their bank account for the renewal.

There was a thread here ages ago on an agent running off with the car insurance premium, also.

Unless the bank has written in the mortage that u must insure via their agent or rep, then walk, and get a direct quote from the companies. they will provide you with all the policies on the spot, and they will sort out with the banks, for copies etc...

My car insurance is cheaper direct with LMG than with the agents using the same company

[dougness]

Thanks for all replies.

[beki123]

I am also of the opinion that these are all just simple sales techniques. I also would not worry about deadlines in this cases. They want to sell home-insurance, car insurance or whatever and they are happy if you actually take an insurance. By the way I also heard that they have immense pressure to make insurance sales at the Siam City Bank. Due to this I thought about dealing with insurance companies only and not with the bank.

Mod note: URL removed....

[wynnsiensheng]

Just wonder if any one has any experience of making a claim under a house and/or contents policy? I have two houses but have never insured either or their contents because I was told the insurance comany always gets out of paying. The one time I made an attempt to take out a policy (can't remember which company) I was treated like someone who would try and trick them with some kind of scam and told to go away and come back with photos of my house and contents. Never even took my name or contact details or the address of the house. Made me think that they thought every punter was trying to trick them with false claims, so genuine one's would be given a very hard time.

I suppose I am lazy also and so have never tried to get insurance again since. But I know I will once one of the houses burns down, ha ha.

[parrot]

"any experience of making a claim under a house and/or contents policy?"

We took out a policy with MSIG, one for the house, one for contents, about 6 years ago. The office in Bangkok has English-speaking representatives (fully conversant). No need to visit their local office or a salesman. Our policy is in English. We do a bank transfer when necessary to keep our policy updated.
About 3 years ago, we encountered an electrical surge that blew out our circuit panel and a hot water heater. I called the Bangkok office up......they emailed a claim form.....I filled out the form, had an electrical repairman sign a short statement describing what happened (prepared by me in English), I took two photos, and a copy of the receipts of supplies to repair the circuit panel and of a new hot water heater, along with a receipt of the repairman's charges......I scanned all the documents and emailed them to MSIG in Bangkok. I had a check covering all the costs in about 10 days. No hassles, no bickering, no negotiating, no one had to visit the house to check my claim. Total claim was only about 12,000 baht.
If you visit the MSIG office in Udon, I'd be surprised if you can find anyone who speaks passable English.....but you might want to give it a try. Otherwise, I'd deal with Bangkok and get full-up service.

[Ray.Charles]

parrot, what is the full name for MSIG? Contact information in Bangkok will also be helpful. Thanks

[parrot]

MSIG Insurance Company Limited. Phone 02-788-8888, extension 8229 for Mr. Boonlert Laoprottakull (he's one of the foreign customer reps). His email is Boonlert_L@th.msig-asia.com

You could always try the MSIG office near the rail tracks, across from UD Center. I went there a few years ago and tried to obtain an English-language policy. They didn't seem interested in helping. Maybe they've changed staff.

[Ray.Charles]

Thanks.

[wynnsiensheng]

Khun Boonlert is going to think it's Christmas. I'm going to get in touch with him as well!