Earthquake Insurance

[Nereus]

Just renewed householders’ policies on two Condos and a house. They have added an earthquake exclusion to all the policies, with a maximum claim of 10k Baht / event.
This is with MSIG, which I believe is a Japanese Company.

Now, Thailand is not considered a major risk area as far as I know. But given that there has been a couple of tremors, including one in Hua Hin, in 2006 if I recall correctly, I believe this may be a reaction to last years quake in Japan.
The person I dealt with at the MSIG office tried to pacify my objections: firstly by blaming the reassurance company, and then admitting that they have been inundated with complaints from clients objecting as I did. She then added that the buildings are still covered for fire risk! And just to make sure the customers are happy, the premium has been increased!

Anybody else had this happen, or know about it? Maybe Mat would like to comment?

[Dannie Boy]

Just renewed householders’ policies on two Condos and a house. They have added an earthquake exclusion to all the policies, with a maximum claim of 10k Baht / event.
This is with MSIG, which I believe is a Japanese Company.

Now, Thailand is not considered a major risk area as far as I know. But given that there has been a couple of tremors, including one in Hua Hin, in 2006 if I recall correctly, I believe this may be a reaction to last years quake in Japan.
The person I dealt with at the MSIG office tried to pacify my objections: firstly by blaming the reassurance company, and then admitting that they have been inundated with complaints from clients objecting as I did. She then added that the buildings are still covered for fire risk! And just to make sure the customers are happy, the premium has been increased!

Anybody else had this happen, or know about it? Maybe Mat would like to comment?

I've just checked my policy that was taken out via Mat of AA and it includes the following clause:


Endorsement :​Earthquake

In consideration of the additional premium paid, it is agreed that notwithstanding anything contained in this Policy to the contrary,

The insurance under this Policy shall extend to cover loss or damage caused by earthquake or volcanic eruption and tidal wave or high water resulting directly from volcanic eruption.

Hope never to have to consider a claim!!

[mat]

After the floodings of last year, indeed most companies in Thailand stopped giving coverage by the 1s of january this year (for new and renewals) for natural catastrophes. And the lady at MSIG is correct, this was mainly caused because the reassurance companies did not want to cover that anymore, so most companies that provide home insurance in Thailand could not do otherwise then stop giving coverage also.
Also most companies had to increase the premiums to make up for the losses last year. MSIG's increase however, was not exactly with a small percentage so maybe the fact that they are Japanese plays a role here.

There are still companies providing coverage for natural catastrophes but of course they are more expensive and not better by definition. Personally i would not feel the need to insure for natural catastrophes myself, but just look at the coverage for the 4 main claim reasons here, which are:
1. burglary (are portable electronics covered? These are in general the first items that get stolen / is the insured sum sufficient?)
2. water leakage (leaking roof, bursted pipe)
3. electrical injury
4. Lightning
(Points 1 and 3 are not so good with MSIG by the way)

Nobody can predict the future, but i think the chance is very small that there will ever be an earthquake in the Hua Hin area. For those that feel more comfortable having natural catastrophes covered: There are good possibilities.