HOME INSURANCE FREQUENTLY - ASKED QUESTIONS 1. I already have an insurance policy for my house building. Why do I need additional insurance for my home content? These are two different sections integrated into our Home Insurance and you can choose to apply for either one or both. Home content Insurance protects the contents of the house, such as furniture, electrical appliances, improved fixtures and fittings, etc. Home Building Insurance covers the physical structure of the building, such as walls, windows, ceilings, floors, pipes and the property's original fixtures and fittings. Therefore, the two covers are complementary. For comprehensive protection, we highly recommend that you should consider buying both insurance policies. 2. As a tenant, may I apply for Home Building cover? Absolutely - you can purchase Home Building cover if it is specified under the tenancy agreement that you are responsible for it. Moreover, you can also apply for Home content cover for items inside your home which belong to you or under your custody. 3. As an owner of a house for rent, may I apply for both House Building and Home content covers? Absolutely you can purchase Home Building cover and also the Home content cover if the contents of the house are your assets. 4. Does the insurance cover the interior decoration of the house? Scenario 1: If the interior decor is part of the construction cost of the building: If you are the home owner, loss of and damage to interior decorations would be covered under House Building cover. If you are the tenant, loss of and damage to interior decorations would be covered under the Home content section if it is specified under the tenancy agreement that you are responsible for them. Scenario 2: If the interior decorations have been improved by you as the home owner or a tenant, loss of and damage to them would definitely be covered under Home content as they are your own improvement. Issued by HSBC Bank (Vietnam) Ltd. 1
Scenario 3: If the interior decorations are additional costs to the construction value of the house: If you are the home owner, losses and damages to interior decorations will be covered under the Home content section as they are your own improvements. If you are the tenant, loss of and damage to interior decorations would be covered under the Home content section if it is specified under the tenancy agreement that you are responsible for them. Please note, you must be able provide evidence to prove that such interior decoration was bought at additional cost to the construction value of the house. 5. Most of my home appliances (fan, refrigerator, washing machine, iron, etc.) are fairly old. Will they be covered? The Home content section of BaoViet s Home insurance policy provides cover for accidental loss of or damage to household contents regardless of whether the insured items are new or old. Regarding the indemnity of the loss, they are covered on a New replacement basis, without any deduction for depreciation. If the appliances are stolen or beyond repair, they will be replaced by a new article of the same kind which is of similar but not better quality. 6. If my home content has a value of VND 750 million, which insurance plan should I apply for? Plan A with limited liability of VND 500 million for each and every loss, or Plan B with limit of liability of VND 1 billion for each and every loss? If the total Sum Insured of your Home content cover lies between two plans, we advise you to select the plan with the higher limit of liability in order to receive financial compensation in full for the whole value of your contents in case of an incident (which in this case would be Plan B). Similarly, if the Sum Insured of the Home content cover is less than the limit of liability for each and every loss under Plan A, you are still recommended to select Plan A to be paid for the whole value of your contents. We will design a special plan as required in case the Sum Insured is higher than limit of liability under Plan C in order to provide you with a comprehensive insurance service package. 7. What isn't covered under this policy? Are there any excesses for claims? The policy does NOT cover for damages: occasioned by riot, civil commotion, strikers or locked-out workers; to any property whatsoever or any loss or expenses whatsoever resulting or arising therefrom or any consequential loss directly or indirectly caused by, contributed to or arising from any nuclear weapons material, voluntary or involuntary use of missiles and/or any kind of warlike weapons, ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear Issued by HSBC Bank (Vietnam) Ltd. 2
waste from the combustion of nuclear fuel. Solely for the purpose or this exclusion, combustion shall include any self-sustaining process of nuclear fission; to any electrical machine, apparatus, or any portion of the electrical installation arising from or occasioned by or over-running, excessive pressure, short circuiting, self heating, arcing or leakage of electricity arising from whatever cause (lightning included); caused by pollution or contamination; losses and damages to data or software or computer programs; arising from acts of war and terrorism. These properties are not covered under the Home Building cover: any property not belonging to the insured or for which he is not legally responsible, any property, the value of which is included in the Total Sum Insured listed in your Home content cover. These properties are not covered under the Home content section: property more specifically insured under another policy; property removed for sale or exhibition or to a furniture depository; bullion or unset precious stones, any curiosity or work of art, manuscripts, plans, drawings or designs, patterns, models or moulds, medals, coins or rare books, securities, obligations or documents of any kind, stamps, coins or cash, currency notes, cheques, travellers' cheques, money orders, postal orders, bills of exchange, promissory notes, books of account or other business books, motor vehicles or accessories, pedal cycles and livestock unless specifically mentioned herein; any part of the structure or ceilings of the buildings, wallpapers and the like or external television and radio antennae, aerials, fittings, masts and towers; any property, the value of which is included in the Total Sum Insured listed under Home Buildings cover. Deductibles are applied as follows: o Section I Home Building: VND 5,000,000 per claim o Section II Home content: VND 2,000,000 per claim. 8. How do we gauge the quantity of the damaged home content if they are of the same type and have similar functions? Loss of and damage to home content which are of the same type or have similar functions shall be separately defined as a loss unit. Issued by HSBC Bank (Vietnam) Ltd. 3
For example, the insured home content destroyed by a fire include: two fans, three air conditions, four televisions and two beds. Each item above shall be defined as a separate loss unit and the total loss units are calculated as follows: 2 + 3 + 4 + 2 = 11 9. How do you determine the value of my home content when I submit the claim? The claim payment for loss of and damage to home content follows the "New replacement basis under which any property which is stolen or damaged beyond repair will be replaced with a new article of the same kind which is of similar but not better quality. The cost of repairing any damaged property is also covered. It will be easier to determine the value if you can provide us with purchase invoices, receipts or repair quotations of the possessions. If an article which is part of a pair or set is lost or damaged, the measure of loss shall be a reasonable and fair proportion of the total value of the pair or set, giving consideration to the importance of the article. 10. Must I keep invoices of the insured contents? We strongly recommend you store all purchase invoices and maintenance bills of the insured contents because they could be important evidence to prove your proprietary right in case of damage or loss. If you are unable to provide this proof, your proprietary rights shall be considered based on the report of our loss adjusters. Please bear in mind that those invoices and bills can only show your possession to the lost or damaged contents, and the values of contents written on those bills might not be used in calculating the claim amount (the payment must be based on New replacement value please refer to question 5, 9, 11). 11. What is the difference between basis of covers of Section I (Home Building cover) and Section II (Home content cover)? Section I. Home Building cover is based on a underinsurance basis, i.e. if the Building shall at the time of any loss or damage for which indemnity is provided under Section I be of greater value than the Sum Insured, then the Insured shall be considered as being his own insurer for the difference and shall bear a ratable proportion of the amount of such loss or damage accordingly. Every item of the building shall be separately subject to this condition. For example: The Sum Insured: VND 2,000,000,000 Construction value of the building at the time of loss: VND 3,000,000,000 Estimated loss: VND 100,000,000 Issued by HSBC Bank (Vietnam) Ltd. 4
2,000,000,000 Claim amount = 100,000,000 x = VND 66,667,000 3,000,000,000 Section II. Home content cover is based on a New replacement basis, i.e. the under value condition would not be considered if the Sum Insured of the home content is less than the real value at the time of loss and damage. (Please refer to question 5, 9) 12. My family and I are leaving Vietnam for a few months. Will the contents of our home be covered during that period? If your house is unoccupied for 30 consecutive days, no compensation will be paid for loss of or damage to household contents due to theft, burglary, malicious act or vandalism. However, other loss of or damage to household contents caused by perils such as fire, typhoon, explosion, etc. can still be covered. Issued by HSBC Bank (Vietnam) Ltd. 5