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Why is there such a big difference in premiums? Is fire insurance mandatory?
Breach of the Buildings Ordinance or causing fire insurance cover to be terminated
What’s the difference between fire insurance and home insurance?
Home insurance covers household contents. Owners or tenants may decide whether or not to purchase it.
Fire insurance and home insurance complement each other.
Bonus: Do you need fire insurance when buying a property? Which fire insurance should you choose?
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[Fire Insurance Comparison 2026] How is it different from home insurance? Which offers better cover and lower premiums?
When applying for a mortgage to buy a property, taking out fire insurance is basically a “must-do”, as banks will require the property owner to purchase a policy to protect the structural safety of the building. However, many people confuse fire insurance with home insurance. In fact, the former mainly covers the building structure, while the latter mainly covers household contents, so the scope of protection is not the same.
Today, 10Life will explain the difference between the two, and compare the premium rate differences of fire insurance products on the market. If you do not wish to have a fire insurance product recommended directly by the bank, you can also choose one yourself.
Table 1: Fire and Building Structure Insurance Comparison (HKD)
| Insurance Company | First-year premium for HK$3 million sum insured | Premium rate | Coverage | Excess |
| 中國平安 按揭火險 |
$900 Get 40% off when you purchase the designated plan online via 10Life →Apply now← |
0.035% |
Replacement cost arising from any loss or damage to the insured property caused by fire, lightning, boiler explosion or domestic gas. |
(a) For each and every loss, the excess shall be 10% of the loss adjusted, or a minimum excess of HK$10,000, whichever is higher; (b) For claims arising from or caused by typhoon/storm/flood, the excess is the first HK$3,000 of the compensation amount#; (c) For claims arising from or caused by earthquake (fire/shock/flood), the excess is the first HK$3,000 of the compensation amount#; (d) For claims under additional cover caused by reasons other than (a), (b) and (c), the excess is the first HK$3,000 of the compensation amount. |
| 忠意保險 火險 |
$976 Get 35% off when you purchase the designated plan online via 10Life →Apply now← |
0.0325% |
Protection against any damage or loss to the residential building structure caused by fire, lightning, domestic boiler or gas explosion. Extended cover for loss or damage caused by flood, typhoon, storm, landslip, subsidence, strike, riot, malicious damage, bush fire, overflow of water tanks, burst pipes, sprinkler leakage, etc. |
(a) For claims arising from or caused by typhoon/storm/flood, the excess is the first HK$3,000 of the compensation amount#; (b) For claims arising from or caused by landslip and subsidence, the excess is the first HK$10,000 of the compensation amount or 10% of the loss, whichever is higher#; (c) For claims arising from or caused by earthquake (fire/shock/flood), the excess is the first HK$3,000 of the compensation amount#; (d) For claims under additional cover caused by reasons other than (a), (b) and (c), the excess is the first HK$3,000 of the compensation amount. |
| OneDegree 火險 |
$1,071 Enjoy 15% off with promo code [fire10life15]; for first-year premium of HK$1,200 or above: receive a HK$200 supermarket coupon →Apply now← |
0.0357% |
Loss or damage caused by fire, lightning, or explosion of domestic boiler and domestic gas fuel, or any agreed additional cover |
(a) For claims arising from or caused by typhoon/storm/flood, the excess is the first HK$3,000 of the compensation amount#; (b) For claims arising from or caused by landslip and subsidence, the excess is the first HK$10,000 of the compensation amount or 10% of the loss, whichever is higher#; (c) For claims arising from or caused by earthquake (fire/shock/flood), the excess is the first HK$3,000 of the compensation amount#; (d) For claims under additional cover caused by reasons other than (a), (b) and (c), the excess is the first HK$3,000 of the compensation amount. |
| 豐隆保險 家居樓宇保險 |
$1,710 | 0.057% |
Accidental damage to the building structure; additional benefits include landslip and subsidence cover, debris removal expense cover (indemnity limit: 5% of the insured amount or HK$100,000, whichever is lower), and surveyor and consulting engineer fee cover (indemnity limit: 5% of the insured amount or HK$100,000, whichever is lower). |
(a) Apart from damage caused by fire, lightning and explosion, the excess for each and every claim is the first HK$1,000 of the compensation amount; (b) For damage caused by landslip or subsidence, the excess for each and every claim is the first HK$10,000 of the compensation amount or 10% of the damage amount, whichever is higher#. |
| AIG 樓宇結構保險 * |
$2,100 | 0.07% |
Covers loss to the residential building structure caused by fire, lightning, explosion, earthquake, aircraft impact, burst or overflowing water pipes or water tanks, storm, typhoon or flood, riot or strike, malicious damage, impact by a third-party vehicle, and landslip. The building structure includes the residential building’s structure, floors, walls, tiles, doors and windows. |
(a) The excess for each non-water damage claim is 10% of the adjusted loss or HK$250, whichever is higher; the excess for each water damage claim is 10% of the adjusted loss or HK$1,000, whichever is higher. (b) For damage caused by landslip or subsidence, the excess for each and every claim is the first HK$10,000 of the compensation amount or 10% of the damage amount, whichever is higher#. |
| 滙豐 火險（基本保障） |
$3,300 | 0.11% |
If damage is caused by fire and lightning, explosion, flood, typhoon and storm, earthquake, landslip and subsidence, HSBC will provide replacement cost cover for the damaged home. |
(a) For claims arising from or caused by typhoon/storm/flood, the excess is the first HK$3,000 of the compensation amount#; (b) For claims arising from or caused by landslip and subsidence, the excess is the first HK$10,000 of the compensation amount or 10% of the loss, whichever is higher#; (c) For claims arising from or caused by earthquake, the excess is the first HK$3,000 of the compensation amount#. (d) For claims under additional cover caused by reasons other than (a), (b) and (c), the excess is the first HK$3,000 of the compensation amount. |
| 滙豐 火險（全面保障） |
$4,500 | 0.15% |
In addition to the basic cover, it further includes cover for defects in water tanks, water delivery installations or pipes, aircraft or vehicle impact (not caused by your vehicle), riot and strike, and malicious damage. |
(a) For claims arising from or caused by typhoon/storm/flood, the excess is the first HK$3,000 of the compensation amount#; (b) For claims arising from or caused by landslip and subsidence, the excess is the first HK$10,000 of the compensation amount or 10% of the loss, whichever is higher#; (c) For claims arising from or caused by earthquake, the excess is the first HK$3,000 of the compensation amount#; (d) For claims under additional cover caused by reasons other than (a), (b) and (c), the excess is the first HK$3,000 of the compensation amount. |
| *Assuming a tenement flat, under 500 sq ft, building age below 40 years #Each and every loss refers to the loss after proportional distribution under the Average Clause for each incident, and incidents occurring within 72 consecutive hours during the insurance period are regarded as one incident. @Assuming building age of 22 years, unit size of 400 sq ft Notes: 1. The above insurance products all provide online quotations or premium rates, from which the relevant premium and premium rate are calculated. 2. If fire insurance is applied for in relation to a mortgage loan amount, the scope of cover must meet the bank’s requirements; consumers should enquire directly with the bank. 3. The premium above does not include the mortgage insurance bureau levy. 4. The ranking of the above products is based on the first-year premium charged by the insurers. 5. Information is subject to the insurers’ final confirmation. |
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Why is there such a big difference in premiums? Is fire insurance mandatory?
The cost of home fire insurance is affected by a number of factors. In general, the premium is calculated based on the loan amount, with the premium rate and other factors taken into account when determining the premium. As a result, the larger the unit area, the higher the premium. In addition, the broader the cover provided by the fire insurance, for example HSBC home fire insurance (comprehensive cover), which typically includes losses caused by aircraft or vehicle collisions, the more expensive the premium will be. Consumers may choose a suitable fire insurance product according to their own needs, such as location, safety risks and past water leakage issues.
If an owner needs to apply for a bank mortgage when purchasing a property, the bank will require the owner to take out fire insurance to protect the value of the property and the bank’s interests. The bank will require the owner to renew the policy annually or set up automatic renewal. It is worth noting that owners do not necessarily have to buy through the bank; they may arrange cover online themselves to meet the bank’s requirements. On the other hand, if the property management company or the owners’ corporation has already taken out a group fire insurance policy for the building, a copy of the relevant documents can actually be provided to the mortgage bank, and it is not necessary to purchase another policy.
Breach of the Buildings Ordinance or causing fire insurance cover to be terminated
Many fire insurance policy terms state that if structural alterations to a unit are in breach of the Buildings Ordinance, the insurer has the right to terminate fire insurance cover for that unit. In fact, there are many circumstances that may constitute a breach of the Buildings Ordinance, including owners altering the unit’s structure without approval from the Buildings Department, carrying out unauthorised demolition to connect units, creating a self-made open-plan kitchen, installing an additional staircase, or, as in the case of a Capital unit at LOHAS Park, removing a load-bearing wall. Therefore, before carrying out renovation or maintenance works, owners should consult a professional for assessment in advance to avoid inadvertently breaking the law and compromising the unit’s insurance protection.
What’s the difference between fire insurance and home insurance?
Many people tend to confuse fire insurance with home insurance. In fact, the former mainly covers the building structure, while the latter mainly covers household contents. The scope of cover differs, and further details can be found in Table 2.
Table 2: Comparison of Fire Insurance and Home Insurance
| Fire Insurance | Home Insurance | |
| Scope of Cover | Covers only the building structure, such as the floor, ceiling, doors and windows, walls and water pipes, etc., but only when caused by fire, lightning, explosion, collapse, landslip, etc. | Covers household contents, such as home appliances, furniture, collectibles, jewellery, etc., when caused by fire, flooding, theft, burst pipes, etc. In addition, home insurance also covers third-party legal liability compensation, as well as worldwide personal belongings cover. |
| Who can buy it? | Property owner | Property owner or tenant |
| Is it compulsory? | If you need to apply for a bank mortgage, the property owner must purchase an appropriate fire insurance policy in accordance with the bank’s requirements. | Decided according to individual needs |
| Note: Actual cover is subject to individual insurance products. | ||
Home insurance covers household contents. Owners or tenants may decide whether or not to purchase it.
Home insurance covers loss of property contents within the home caused by accidents, and compensates for related damage costs for items such as household appliances, furniture, collections, jewellery and more. However, as the compensation limits for individual items vary between plans, and some products may also include third-party liability insurance, consumers should review the policy terms carefully according to their own needs in order to choose a suitable product.
At present, many home insurance policies not only cover household contents, but also provide global personal cover, such as repair costs for mobile phones, laptops or tablets; expenses for replacing stolen cash and personal documents; and losses arising from unauthorised use of credit cards.
However, buying home insurance is not the preserve of property owners. In fact, both owners and tenants can decide whether to purchase home insurance according to their personal needs, in order to protect personal belongings. As for the premium, it is usually higher for properties with a larger gross floor area. If the property is older, or is an atypical flat unit, insurers’ charges will also differ.
Fire insurance and home insurance complement each other.
Taking fire as an example, fire insurance can compensate for damage to the building structure such as walls and ceilings, whereas home insurance can cover losses to household contents. It is therefore clear that these two insurance products are designed for different risks, and policyholders should not confuse them.
If you want to learn more about home insurance products, compare over 30 home insurance plans on the market now at Compare over 30 home insurance plans on the market, with details of cover and premiums clearly laid out, plus actuarial ratings.
Further reading:
【Home Insurance Comparison 2026】Which home insurance is best? A complete guide for owners and tenants (with exclusive actuarial ratings)
Bonus: Do you need fire insurance when buying a property? Which fire insurance should you choose?
When purchasing a flat, members of the public usually need to apply to a bank for a mortgage, and the property will also serve as the bank’s collateral. To protect its interests, the bank generally requires the mortgaged property to have fire insurance, so a mortgage and fire insurance are closely linked.
When granting a mortgage, some banks waive the fire insurance premium for the first year or the first six months, after which the policy will be automatically renewed and a fee charged. Buyers do not necessarily have to purchase the fire insurance specified by the bank; they only need to ensure that the policy meets the bank’s requirements, and should also pay attention to the renewal and autopay dates to avoid any lapse in cover.
In short, as long as you take out a mortgage, you must ensure that the property has eligible fire insurance; whether you choose the bank’s recommended insurer is entirely up to you, provided the bank confirms that the policy is eligible.In addition, for some newer estates, the management fee already includes collective fire insurance, so there is no need to take out duplicate cover. Want to know how to calculate the most cost-effective amount and what to note before taking out cover? Read the guide below 👇
Note: This article was last updated on23March 2026.
This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.
Last updated: 7 Aug 2026
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10Life Product Comparison and 10Life Insurance Ratings are developed by 10Life Financial Limited, an authorised insurance broker company licensed with the Insurance Authority under License Number FB1526. 10Life Product Comparison and 10Life Insurance Ratings are developed for generic customer segments using mathematical calculations based on product information, facts and data, and are not influenced by any partnerships with or fees received from insurance companies. Any information on 10Life Platform ("10Life Information"), including but not limited to Product Comparison, Product Ratings, Blog Articles are intended for general education purpose and reference only. None of the 10Life Information is intended, nor should they be considered or relied upon, as regulated advice, insurance, financial, investment or professional advice, recommendation, approval, endorsement, invitation or solicitation in respect of any insurance, financial or investment products. 10Life Information does not take into account your individual needs. Reading 10Life Information should not be considered as conducting a suitability assessment, and is not sufficient to form the basis of any decisions to purchase any insurance products. You should rely on information authorised by insurance companies, carry out your own research and/or seek independent advice from licensed intermediaries before purchasing any insurance products or making any insurance decisions. While reasonable effort is used when collecting, validating and updating 10Life Information from various channels, none of 10Life Group and its subsidiaries, affiliates, agents, directors, officers and employees will be responsible for any liability, claim or loss arising from or associated with you using 10Life Information. No warranty, representation or guarantee is given by 10Life Group and its subsidiaries on the accuracy, completeness and timeliness of the information. If you have any questions on 10Life Product Comparison and 10Life Insurance Ratings, please email us at enquiries@10life.com
