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House insurance in Indonesia: How to insure your property?

house insurance in indonesia

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Property owners should carefully consider house insurance in Indonesia. Whether they own residential or business properties, there are several risks property owners take when owning property in Indonesia. Property insurance provides financial protection against these risks. With the country’s unique geographical and climatic conditions, home insurance in Indonesia is not just a precaution but a necessity.

2 types of property insurance in Indonesia

House insurance in Indonesia is a crucial investment for property owners as it provides financial protection against several risks and ensures peace of mind. There are two types of house insurance in Indonesia: home insurance and business insurance.

  • Home insurance in Indonesia: This type of insurance policy is specifically designed to cover residential homes. It provides coverage against various risks, including natural disasters, which are common in Indonesia due to its location within the Pacific Ring of Fire. Typically, home insurance policies cover damage caused by earthquakes, floods, and other natural calamities, as well as theft and vandalism.
  • Business insurance in Indonesia: This type of insurance is designed specifically for businesses and their properties. It covers similar risks as home insurance but is tailored to meet the specific needs of companies. Business insurance in Indonesia covers property damage, loss of income due to business interruption, and liability in case of accidents occurring on the premises.

Do you need house insurance in Indonesia?

Although not mandatory, it’s highly recommended to have house insurance in Indonesia. There are several reasons why insurance for houses is a smart idea:

  1. Natural disaster protection: Indonesia is vulnerable to natural disasters like earthquakes and tsunamis, making insurance crucial for financial security.
  2. Theft and vandalism: Insurance provides coverage against theft and vandalism, which can concern property security in some areas.
  3. Peace of mind: Having insurance ensures peace of mind, knowing that your property is protected against unforeseen events.
  4. Financial security: It helps maintain financial stability by avoiding the burden of unexpected repair costs.

House insurance for rental property in Bali

Owning rental property in Bali comes with an increased risk of property damage and liability issues due to the island’s popularity as a major tourist destination. For this reason, property insurance in Bali is essential for property owners who rent out their villas or apartments to short-term guests. Visitors are often less cautious with rental properties, making insurance coverage a crucial investment.

Specific insurance coverage may be necessary for some rental or lease agreements in Bali. Additionally, rental properties may require additional coverage for loss of rental income or higher liability limits.

best property insurance in bali

What is the best house insurance in Indonesia?

Several insurance companies offer insurance for houses in Indonesia. Some of the most notable companies offering comprehensive house insurance policies are:

How much does house insurance in Indonesia cost?

The average rate for house insurance premiums in Indonesia is approximately 0.1996% of the insured sum. However, the total cost of house insurance in Indonesia varies based on property price, type, location, total cost of home contents, and the extent of coverage.

Example of Indonesia’s house insurance cost

Let’s consider an example where we have a property that is priced at IDR 2 billion ($122,000). The total cost of home contents is IDR 150 million ($9,150), which brings the total insured sum to IDR 2.15 billion ($131,150). Applying the tariff rate of 0.1996%, we get the insurance premium amounting to IDR 4.29 million ($262).

6 tips for choosing the best property insurance

Are you looking for the best house insurance in Indonesia? When selecting property insurance in Indonesia, consider the following:

  1. Understand the coverage: It’s important to understand what is included in your insurance coverage and what is not. When selecting house insurance in Indonesia, make sure to choose one that covers common risks in Indonesia, such as earthquakes, floods, and volcanic eruptions.
  2. Consider the property type: Research the types of properties that are covered by your policy. Remember that villa insurance policies may have different requirements and guidelines than apartment insurance policies.
  3. Compare premiums: Look around and compare building insurance premiums from different companies.
  4. Check the insurer’s reputation: Choose an insurance company with a good reputation for customer service and claim settlement.
  5. Read the insurance policy: Carefully review the policy’s exclusions and limitations to avoid surprises.
  6. Consider additional coverage: Depending on your property’s location and use, you may require additional coverage, such as liability or loss of income protection (in the case of rental property).

Always carefully research the several companies and policies to choose the best house insurance in Indonesia.

Get house insurance in Indonesia with Own Property Abroad

Do you want to buy house insurance in Indonesia? Own Property Abroad can assist you and ensure a seamless and hassle-free property journey. Thanks to our extensive knowledge and local experience in the Indonesian market, we can help with property insurance, legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.

With our expert team, you won’t have to navigate the complexities of the Indonesian market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected].

Get help with property insurance in Indonesia

Leave your name and email below – Our property expert will reach out to help you to find the best house insurance in Indonesia.

Frequently Asked Questions (FAQs)

Does Indonesia offer house insurance?

There are several companies offering house insurance in Indonesia. Property owners in Indonesia can avail themselves of various house insurance policies that provide coverage against natural disasters, theft, fire, and other potential damages. These policies are tailored to protect residential homes and are widely available through numerous insurance providers. Property owners can also choose business insurance in Indonesia tailored for business owners.

What should I insure my property in Indonesia against?

In Indonesia, it’s advisable to insure your property against various risks, including natural disasters (such as earthquakes, tsunamis, and floods), theft, vandalism, and fire. Given Indonesia’s geographical location, it’s essential to have coverage for natural disasters.

Is home insurance in Indonesia worth the investment?

Home insurance in Indonesia is worth the investment. Considering the country’s vulnerability to natural disasters and risks like theft and fire, home insurance provides homeowners with essential financial protection and peace of mind. The benefits of securing your property with a comprehensive insurance policy far outweigh the costs involved.

How much is Bali property insurance?

Bali property insurance costs around 0.1996% of the insured sum (property value and price of home contents combined). However, the cost may vary depending on the insurance company, property type, location, and extent of coverage.
Generally, insurance premiums in Bali are considered affordable and are a wise investment for the protection they offer against various risks, especially in a high-tourism area.

Is there a special villa insurance in Bali?

Yes, there is special villa insurance in Bali available. This type of insurance is designed to cater to the unique needs of villa owners, covering risks such as property damage, liability issues, and potential loss of rental income, which are particularly relevant for properties in tourist-heavy areas like Bali.

Your guide to buying property in Indonesia

Written by Matt Timmermans

3 Responses

  1. Hi. I have a 10 year lease on a villa in Seminyak, Bali. I want to lease it out commercially. Do you have a suitable policy for this?
    Thanks Ray

  2. Hi!

    I’m interested in learning more about real estate insurance for apartments in Bali. Specifically, I want to insure a complex of apartments against fire, earthquakes, floods, and other common risks.

    The complex has three buildings, with each building housing apartments. Each apartment has its own owner.

    Can you please help me with some questions:

    1. Can I get insurance for the entire complex, or do I need to get individual insurance for each apartment?
    2. What will the cost of insurance be per year, roughly? Is it around 0.5% of the value of the property?
    3. Can you give me more information via WhatsApp so we can talk further?

    1. Hello Oleg! For insuring a complex of apartments in Bali:
      1. Insurance can be obtained for the entire complex, but it might be easier to insure each apartment individually.
      2. The cost is typically around 0.5% of the property value per year, but this can vary.
      3. You can contact us via WhatsApp at +31683506131 for more information.

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