Blog

So you’ve finally purchased your dream home here in Bali Villa ! Congratulations! Now that you’re a proud homeowner, there is going to be plenty to keep you busy, from maintenance to upkeep and utilities.

One of the most important matters that you should think about as a homeowner is Property Insurance. Should you get one and what is it for? Firstly, let’s take a look at the types of Property Insurance that are available in Indonesia.

In general, there are two: Homeowners Insurance and Business Insurance. If you’re not planning to run a business out of your home, then the obvious choice would definitely be the Homeowners Insurance.

Homeowners Insurance

Homeowners insurance is for private homes owned by a person and not a business. The idea behind home insurance is to cover losses and damages to your residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.

Every homeowner insurance is different depending on the company and the policy that you choose. Remember to properly understand what is and isn’t covered; ask a lot of questions and read the fine print. In general though with any policy, your actual, physical dwelling should be covered, as well as some other structures on the property, like your garage, fence, pool, and driveway.

Based on the Indonesian Fire Insurance Standard Policy (PSAKI), a home insurance policy would cover damages caused by the following:

• Fire
• Lightning
• Explosion
• Fall of Airplanes
• Smoke
• Wind / Hail

You can also extend your policy to cover the following:

• Storm
• Riot
• Protection of valuables
• Protection if an injury to a third party
• Financial protection in the event of damages to the property of the insured
• Temporary residence accommodation if the house/building is damaged and cannot be inhabited again

Bonus Tip: If you’re planning to rent out your property, you may want to consider applying for landlord insurance for unexpected damages that can cover furniture, appliances, and other items. The coverage can be extended to cover legal costs, loss of income, and more.

It would also be wise to also take into consideration the possible risks of earthquakes, volcanoes, and Tsunami, as Indonesia sits on the “ring of fire”.  We’ll never know what the future holds but it is always best to protect yourself, your loved ones, and your investment the best possible way there is.

Ready to get started? There are many internationally-renowned insurance companies here in Bali, including Allianz, AXA, MSIG, and more. You can contact one, or all and speak to the agents individually.

You could also speak to other homeowners here in Bali and ask them for their tips and advice. Based on all your research, we are sure that you’d make the right decision when it comes to protecting your home and your loved ones.