What Is Home Insurance? Coverage, Benefits, and How to Choose

Last updated: 18 Dec 2025

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What Is Home Insurance?

Home insurance is a type of non-life insurance that provides coverage for damage to a house and the property inside it arising from unexpected events, such as fire, flood, storm, strong winds, lightning, explosion, burglary, or liability for damage to third parties. The scope of coverage depends on the terms and conditions selected in the insurance policy.

What Does Home Insurance Cover? (Summary)

Generally, home insurance provides coverage in three main areas:

1.Building Structure

o The house structure, including walls, roof, floors, doors, and windows

o Permanent structures such as garages and fences (subject to policy conditions)

2. Household Contents

o Furniture, electrical appliances, and personal belongings

o The sum insured for contents must be specified separately from the building

3. Third-Party Liability

o Liability arising from incidents caused by the insured property that result in bodily injury or property damage to others

o For example, roof tiles falling onto a neighbors car, or water leakage damaging the unit below

Who Should Consider Home Insurance?

Homeowners living in their own property To protect the home and daily living risks
Property owners who rent out their homes To reduce financial risks and potential disputes
Tenants To protect personal belongings (the homeowners insurance does not cover tenants property)

Key Points to Understand

Home insurance is not insurance on the market or purchase value of the house
The sum insured is based on reconstruction cost plus the value of household contents
Land does not need to be insured, as it is not subject to loss or damage from insured perils

A Simple Guide to Choosing the Right Home Insurance

1. Owner-Occupied Home (Living in Your Own Home)
In addition to structural coverage, you should consider the following additional protections:

Household Contents: Furniture and electrical appliances
Emergency Assistance Services: Electricians and plumbers (often provided free by many insurers)
Temporary Accommodation: If the house is damaged and becomes uninhabitable, the insurance will cover hotel expenses

This option is suitable for homeowners seeking comprehensive peace of mind, covering both the property and daily living risks.

2. Rental Property (Letting Out the Property)

Unfurnished Property: Building coverage alone is generally sufficient
Furnished Property: Contents insurance is recommended in case tenants damage furniture or appliances
Legal Liability Insurance: If an incident occurs at the propertysuch as a tenant being injured or damage spreading to neighboring propertiesthe insurance will compensate third parties on behalf of the owner

This option is ideal for property investors or landlords.

️ 3. Tenant (Renter)
A common misunderstanding is that:
The landlords insurance does not cover the tenants personal belongings.

Therefore, tenants should consider:

Personal Contents Insurance: Such as coverage for laptops, mobile phones, and clothing
Liability Insurance: If the tenant causes damage to the property or the landlords belongings, the insurance will help cover repair costs

This ensures tenants are protected against both property loss and legal liability.

Three Important Points in Home Insurance That Are Often Overlooked

1. Appropriate Sum Insured (Avoid Under- or Over-Insurance)

The sum insured should be based on reconstruction cost plus the value of household contents
Land value is not included, as land cannot be lost or damaged by fire

Points to Note:

Under-insured: The sum insured is lower than the actual value claims may not be paid in full
Over-insured: The sum insured is higher than the actual value higher premiums, but claim payments remain the same

2. Policy Period

Annual Policy: More flexible and easier to switch insurers, but there is a risk of forgetting to renew
Long-Term Policy (3 years or more): Lower premiums and reduced concern about lapses in coverage

3. What Is Not Covered (Important to Know Before Purchasing)

Common standard exclusions include:

Wear and tear or gradual deterioration: termites, mold, or structural settlement
War or nuclear-related events
Land
Substandard or non-compliant construction (subject to policy terms and conditions)

Example of Home Insurance Premium Calculation (Easy to Understand)

Property Details (Sample Case)

Type: Single-storey detached house (owner-occupied)
Usable area: 195 sq.m.
Structure: Reinforced concrete with tiled roof
Outdoor area: 13 × 15 m. = 195 sq.m.

Sum Insured Used for Calculation

1) Building Sum Insured

Calculated based on reconstruction cost (excluding land value)
Example: 195 sq.m. × THB 13,000
️THB 2,600,000

2) Household Contents Sum Insured

Furniture, electrical appliances, and personal belongings
️THB 800,000
Total Sum Insured: THB 3,400,000

Estimated Premium Comparison Table

Note: The figures above are illustrative and for educational purposes only.
Actual premiums depend on the selected insurance plan, coverage scope, and each insurers terms and conditions.

Tags :

Home Insurance

Property Insurance

House Insurance Thailand

Fire Insurance

Landlord Insurance

Tenant Insurance