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【Fire Insurance Comparison 2026】Fire Insurance VS HomeCare Insurance: what’s the difference? Which offers better cover at a lower price?
When applying for a mortgage to purchase a property, taking out fire insurance is essentially a “mandatory step”, as banks will require the property owner to purchase a fire insurance policy. Many people confuse fire insurance with Home protection insurance. In fact, the former primarily covers the building structure, while the latter mainly covers household contents, so their areas of cover are not the same.
As a one-stop insurance platform in Hong Kong, 10Life takes an in-depth look at fire insurance and compares the differences in premium rates among fire insurance policies on the market. If you do not want to be forced to accept the fire insurance bundled and sold by your bank, you can in fact choose a policy yourself and find a more cost-effective product.
Buying a home means you need fire insurance? Which fire insurance is best?
Table 1: Fire Insurance / Building Structure Insurance Comparison (HK$)
Assuming the building is 22 years old, a flat with a saleable area of 400 sq ft and a sum insured of $3 million
| Insurer | First-year premium for a sum insured of HK$3 million | Coverage | Excess |
| Ping An Mortgage fire insurance | $900 Enjoy 40% off selected plans when purchasing insurance online through 10Life →Apply now← (Premium rate: 0.03%) | Reinstatement costs of the building structure arising from fire, lightning and boiler/household gas explosion; drainage pipes are not covered. | (a) General accidents: 10% of the loss or $10,000, whichever is higher; (b) Typhoon, rainstorm, flood and earthquake: $3,000#; (d) Other extensions: $3,000 |
| Generali Fire insurance | $976 Enjoy 35% off selected plans when purchasing insurance online through 10Life →Apply now← (Premium rate: 0.0325%) | Fire and explosion; extended coverage for windstorm, flood, landslip, burst pipes and malicious damage, etc. | (a) Typhoon, rainstorm, flood and earthquake: $3,000#; (b) Landslip and subsidence: $10,000 or 10% of the loss, whichever is higher#; (c) Earthquake (fire/vibration/flood): $3,000 # |
| OneDegree Fire insurance | $1,071 Enjoy 15% off with promo code 【fire10life15】; receive a $200 supermarket voucher if the first-year premium is $1,200 or above →Apply now← (Premium rate: 0.0357%) | Fire, lightning and household boiler/gas explosion. | (a) Typhoon, rainstorm, flood and earthquake: $3,000#; (b) Landslip and subsidence: $10,000 or 10% of the loss, whichever is higher#; (c) Earthquake (fire/vibration/flood): HK$3,000# . |
| Hong Leong Home Building Insurance | $1,710 (Premium rate: 0.057%) | Accidental damage to the building structure, landslip and subsidence, and debris removal costs. | (a) Fire, lightning and explosion: $1,000; (b) Landslip or subsidence: $10,000 or 10% of the loss, whichever is higher#. |
| AIG Building Structure Insurance * | $2,100 (Premium rate: 0.07%) | Fire, explosion, windstorm, water damage, earthquake, landslip and subsidence, and impact by third-party vehicles, etc. | (a) Non-water damage: 10% of the adjusted loss or $250, whichever is higher; (b) Water damage: 10% of the adjusted loss or $1,000, whichever is higher; (c) Landslip and subsidence: $10,000 or 10% of the loss, whichever is higher#. |
| HSBC Fire Insurance (Basic Cover) | $3,300 (Premium rate: 0.11%) | Fire, explosion, windstorm, flood, earthquake, and landslip and subsidence. | (a) Typhoon, rainstorm and flood: $3,000#; (b) Landslip and subsidence: $10,000 or 10% of the loss, whichever is higher#; (c) Earthquake: $3,000# |
| HSBC Fire Insurance (Comprehensive Cover) | $4,500 (Premium rate: 0.15%) | Basic cover plus defective water pipes, impact by aircraft/third-party vehicles, riot, strike and malicious damage. | (a) Typhoon, rainstorm and flood: $3,000#; (b) Landslip and subsidence: $10,000 or 10% of the loss, whichever is higher#; (c) Earthquake: $3,000# |
| #Each loss means the loss calculated after applying the proportional contribution clause to each incident, and all incidents occurring within a continuous period of 72 hours during the period of insurance shall be deemed to constitute one incident. Notes: 1. The insurance products above all provide online quotations or premium rates, based on which the relevant premiums and premium rates are calculated. 2. If fire insurance is applied for based on the mortgage loan amount, the relevant coverage must comply with the bank's requirements. Consumers are advised to enquire directly with the bank. 3. The premiums above do not include the levy imposed by the Insurance Authority on the Mortgage Insurance Programme. 4. The products above are ranked according to the insurers' first-year premiums. 5. The information provided by the insurers shall prevail. | |||
Fire insurance premiums are affected by multiple factors. Generally, the sum insured is calculated based on the mortgage amount, with the premium then calculated by taking factors such as the premium rate into account. Therefore, the larger the unit area and the higher the mortgage loan, the higher the premium. In addition, the broader the coverage provided by the fire insurance, such as the losses caused by aircraft or vehicle collisions included in HSBC fire insurance (comprehensive coverage), the more expensive the premium will be. Consumers can choose suitable fire insurance products based on their own needs, such as the geographical location, age of the building, safety risks and previous water leakage issues.
When purchasing a property, if the owner needs to apply for a bank mortgage, the bank will require the owner to purchase 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 arrange automatic renewal. It is worth noting that owners are not necessarily required to purchase insurance through the bank; they can take out insurance online themselves to meet the bank’s requirements.
On the other hand, if the property management company or owners’ corporation has purchased group fire insurance for the property, a copy of the relevant documents can be provided to the mortgage bank, and it is not necessarily required to purchase another policy.
Breach of the Buildings Ordinance or termination of fire insurance coverage
Many fire insurance policy terms stipulate that, if structural alterations to a flat contravene the Buildings Ordinance, the insurer has the right to terminate the fire insurance coverage for that flat. In fact, there are numerous circumstances that may contravene the Buildings Ordinance, including altering the structure of a flat without obtaining the Buildings Department’s approval, carrying out works to illegally merge flats, creating an open-plan kitchen, installing a staircase, or, as in the case of a flat at The Capitol, LOHAS Park, demolishing a load-bearing wall. Therefore, before commencing renovation or repair works, flat owners should consult a professional for an assessment to avoid inadvertently breaking the law and compromising the structural integrity of the flat.
What is the difference between fire insurance and Home protection insurance?
Many people confuse fire insurance with Home protection insurance. In fact, the former primarily covers the building structure, whereas the latter primarily covers household contents. Their areas of cover are not the same; please refer to Table 2 for details.
Table 2: Comparison of fire insurance and Home protection insurance
| Fire insurance | Home protection insurance | |
| Areas of cover | Covers only the building structure, such as floors, ceilings, doors and windows, walls and water pipes, provided that the damage is caused by fire, lightning, explosion, building collapse, landslides or other specified events | Covers household contents, such as household appliances, furniture, collectibles and jewellery, provided that the damage is caused by fire, flooding, theft or burst water pipes. In addition, Home protection insurance also covers third-party legal liability and personal belongings worldwide |
| Who can buy it? | Property owners | Property owners or tenants |
| Is it compulsory to buy? | If applying for a mortgage, property owners must purchase suitable fire insurance in accordance with the bank’s requirements | Determined according to individual needs |
| Note: The actual cover is subject to the individual insurance product. | ||
Home protection insurance protects household contents. Homeowners or tenants can decide whether to purchase it.
Home protection insurance covers the cost of repairing or replacing property damaged as a result of accidents, including household appliances, furniture, collectibles, jewellery and other belongings. However, as the compensation limits for individual items vary between plans, and some products may also include third-party liability insurance, consumers are advised to read the product terms carefully and choose a product that suits their needs.
Many Home protection insurance policies currently cover not only household contents, but also provide worldwide protection for personal belongings, such as the repair costs of mobile phones, laptops and tablets; the cost of replacing money and personal identification documents following theft; and losses resulting from the misuse of credit cards.
However, purchasing Home protection insurance is not exclusive to homeowners. In fact, both homeowners and tenants may decide whether to purchase Home protection insurance according to their individual needs, in order to protect their personal belongings. As for premiums, the larger the gross floor area, the higher the premium is generally. Insurance companies may also charge different premiums for older properties or non-standard subdivided units.
Fire insurance and Home protection insurance complement each other.
Taking fire as an example, fire insurance can cover damage to building structures such as walls and ceilings, while Home protection insurance can cover losses of household contents. It is therefore clear that the two insurance products actually cover different risks, and policyholders should not confuse them.
Want to learn more about Home protection insurance products? Compare over 30 Home protection insurance products on the market now to view the coverage and premiums at a glance, along with exclusive actuarial ratings.
In summary, if you are taking out a mortgage, you must ensure that the property has eligible fire insurance. However, you are free to decide whether to choose the company recommended by the bank, provided that the bank confirms that it meets the eligibility requirements. In addition, the management fees for some newer housing estates already include group fire insurance, so there is no need to take out duplicate cover. Want to know how to calculate the most cost-effective option and what to look out for before taking out a policy? Check out the guide below 👇
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.
Oscar
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