AXA Hong Kong today unveiled findings of the first ‘AXA Home Protection Awareness Study’, which gauges Hong Kong residents’ understanding of home insurance and its coverage. Over 1,000 respondents aged 18 or above, who are decision makers on home insurance[1], were surveyed between June and July this year. Drawing on the findings, AXA Hong Kong aims at raising public awareness of the potential household risks and the need to safeguard valuables at home.

Low penetration of home insurance uptake and a lack of awareness on safeguarding valuables at home 

The survey findings show that while almost 80% of respondents did not purchase home insurance, of which 40% have not thought about the need of purchasing one. Moreover, 36% say that they do not own any valuable items at home, and 31% think the risk of loss and damage is low.

Despite many Hong Kong people not owning proper home protection, the average estimated value of personal valuables at home amounts to almost HK$400,000, with gold, silver and precious metals (21%), jewellery (16%) and watches (11%) being the three most common valuables kept at home. 

Furthermore, home accidents happen often and one in three respondents (33%) have encountered accidents in the past 12 months, with water seepage (15%) and burst pipes (10%) being the most common accidents. According to AXA Hong Kong’s claims data, the claim payment amount caused by water damage[2] from January 2016 to May 2017 accounted for 51% of the total claim payment amount, and the average claim payment for such damage was around HK$15,000.

Misconceptions about home and fire insurance[3] prevail, with the majority of respondents unable to articulate the difference

Almost 60% of respondents claim that they are aware of the difference in coverage between home insurance and fire insurance, though more than 90% cannot articulate it.

Around 70% of respondents are unaware of the fact that accidental damages caused by domestic helpers, decorators and visitors/ guests at home are also covered by home insurance, indicating the lack of sufficient understanding on the insurance coverage for losses.

Findings also reveal that around 60% of Hong Kong people[4] have misconceptions about fire insurance. In the case of a fire accident, respondents mistakenly think that the cost of alternative accommodation and temporary storage of furniture are covered by fire insurance. On the contrary, fire insurance only covers the building structure such as walls, ceiling and floor. Awareness of the coverage provided by home insurance among Hong Kong people is also alarming as the survey reveals that even current owners of home insurance do not show a good understanding of home insurance coverage.

 ‘While many Hong Kong people pay a great deal of effort in building their dream homes, this survey shows that the majority of them have ignored the importance of safeguarding home contents, in addition to  lacking an adequate understanding of coverage provided by home and fire insurance. Through this study, we hope to raise their awareness of the importance of home protection. “Home” is considered one of the most precious assets in our lives, and a comprehensive home insurance plan could provide the best protection for home contents and personal valuables. Having such a plan is crucial to providing support in case of accidents, offering peace of mind to individuals and their family members.’ Ms. Agnes Choi, Chief Distribution Officer, General Insurance, AXA Hong Kong.

As a thought leader in general insurance, AXA Hong Kong has recently been honoured with an accolade in the ‘Home Insurance’ category of the ‘Smart Parents’ Choice – Brand Awards 2017’ organised by Smart Parents, the parenting weekly of Sing Tao Daily, recognising the company’s strong commitment to providing comprehensive home insurance plans to the public.