[Smart Living @Kenneth] Fire insurance vs home insurance: What's the difference and which one do property owners and tenants need?
Lifestyle2026-07-15
7 Mins Read
Many property owners and tenants assume that fire insurance and home insurance are the same. In reality, however, they serve very different purposes.
Simply put, fire insurance mainly protects the structure of a property, while home insurance primarily covers household contents and third-party liability. Having fire insurance does not necessarily mean that your belongings at home are protected. As buildings age, extreme weather events become more frequent and household accidents increasingly common, understanding the differences between fire insurance and home insurance can help property owners and tenants choose the protection that best suits their needs.
What is fire insurance?
Fire insurance, more formally known as building structure insurance, is designed to protect the structural elements of a property, including ceilings, walls, flooring, doors, windows and water pipes.
Coverage generally applies to structural damage caused by incidents such as fire, typhoons, rainstorms, flooding, lightning strikes and landslides.
Who needs fire insurance?
Fire insurance is primarily intended for property owners, for two main reasons:
- When approving a mortgage, banks usually require property owners to purchase fire insurance. This ensures that funds are available for repairs or rebuilding if the property suffers structural damage, thereby protecting the value of the mortgaged asset.
- Some residential developments arrange a master fire insurance policy for the entire building through the management office. The premiums are typically included in the management fees. These policies generally provide basic coverage for the building structure and common areas.
It is worth noting that even after a mortgage is fully repaid and fire insurance is no longer required by the bank, property owners should still consider maintaining coverage. Given Hong Kong's dense urban environment, repair and reconstruction costs can be substantial. In the event of a fire, typhoon or other major incident, repair works can easily cost tens or even hundreds of thousands of Hong Kong dollars. Fire insurance is often relatively affordable and can provide valuable financial protection when it matters most. However, fire insurance coverage is not unconditional. Unauthorised structural modifications, such as removing a load-bearing wall, may invalidate the policy.
What is home insurance?
Unlike fire insurance, home insurance is designed to protect your household contents and your potential legal liability to third parties. The coverage includes:
- Household contents coverage protects items such as furniture, home appliances, clothing and valuables against accidental loss or damage caused by events such as fire, flooding and burglary. Take AXA SmartHome Plus as an example. The plan provides coverage for accidental loss of or damage to furniture, fixtures and fittings, household appliances and personal belongings. In addition, it covers up to 60 valuable items of up to HKD 10,000 each, subject to a maximum benefit of HKD 600,000 or one-third of the home contents sum insured (Plan B).
- Third-party liability coverage protects the insured against legal liability and compensation costs arising from accidental bodily injury or property damage suffered by a third party related to the insured home. Common examples include water leakage damaging neighbouring units, or objects falling from a window and injuring a passer-by. Under AXA SmartHome Plus, third-party liability coverage provides protection of up to HKD 20,000,000 for damages caused to third-party resulting from incidents such as fire or burst pipes.
Protect your home with SmartHome Plus
There is no place like home. Get your home the protection it deserves in just a few minutes, whether you own it or rent it.
Who needs home insurance?
Both property owners and tenants can benefit from home insurance.
- For tenants, even if the building structure is insured, their personal belongings are typically not protected. Furniture, home appliances and personal possessions purchased by the tenant would generally need to be insured separately. More importantly, if a tenant's negligence causes loss or damage to a third party — for example, forgetting to turn off a tap and causing water damage to a neighbouring unit — the tenant could be held legally liable for compensation and legal costs.
- For property owners, whether the property is owner-occupied or rented out, home insurance is recommended to help manage various potential risks:
- Owner-occupied property: Provides protection for household contents and third-party liability arising from everyday accidents at home.
- Rental property: Even if the tenant owns the furniture and personal belongings, property owners may still be responsible for incidents arising from the property itself. For example, if an original water pipe bursts and causes water damage to neighbouring units, the legal liability and compensation claims could ultimately fall on the property owner.
Fire insurance vs home insurance: What's the difference?
Comparison | Fire insurance (building structure insurance) | Home insurance |
What is covered? | ||
What is covered? | Building structure (e.g. ceilings, walls, flooring, doors and windows) | Household contents (e.g. furniture, home appliances and personal belongings) |
Who is it for? | ||
Who is it for? | Property owners | Property owners and tenants |
Is it mandatory? | ||
Is it mandatory? | Usually required by banks for mortgages | Not mandatory, but recommended |
Third-party liability coverage | ||
Third-party liability coverage | Often limited or available only as an optional add-on | Usually included |
Simply put, fire insurance protects the structure of a property, while home insurance protects the contents inside your home and provides third-party liability protection against unexpected incidents. Both types of insurance complement each other and serve different purposes.
Consider a common scenario: a typhoon shatters a flat's window, allowing rainwater to flood the home. As a result, the walls, flooring, furniture and television are damaged, while water also spreads into the building and damages the lift.
In this situation:
- Repair costs for original windows, walls and flooring that form part of the building structure may be claimed under a fire insurance policy, subject to the policy terms and conditions.
- Damaged household contents, such as furniture and televisions, would typically be covered under a home insurance policy.
- Damage to the building's lift would be considered third-party property damage and may be covered under the third-party liability section of a home insurance policy.
If you only have fire insurance, losses involving household contents and third-party liability may not be covered. On the other hand, relying solely on home insurance could leave you with significant repair costs for the building structure.
Protect your home with SmartHome Plus
There is no place like home. Get your home the protection it deserves in just a few minutes, whether you own it or rent it.
How should property owners and tenants choose?
- If you own and live in your property: Consider both fire insurance and home insurance.
- If you rent out your property: Consider both fire insurance and home insurance, particularly plans that offer loss of rental income protection.
- If you are a tenant: Home insurance is generally recommended, while fire insurance is typically the property owner's responsibility.
Protect your home with SmartHome Plus
There is no place like home. Get your home the protection it deserves in just a few minutes, whether you own it or rent it.
Q1: If my building already has a master fire insurance policy, do I still need my own fire insurance?
Q2: Do tenants need insurance for appliances and furniture provided by the landlord?
Q3: Can fire insurance and home insurance be purchased under the same policy?
How does AXA SmartHome Plus protect your home?
AXA SmartHome Plus offers flexible and customisable protection tailored to different needs. Whether you are an owner-occupier, a landlord or a tenant, you can choose the coverage that best suits your circumstances.
- Household contents coverage: Protects household contents such as furniture, household equipment, electrical appliances and personal belongings, including clothing, without the need to declare each item individually. Valuable items such as jewellery and cash are also covered under the policy.
- Third-Party Liability Coverage – We cover up to HKD20,000,000 for damages caused to third party – such as from a fire or a pipe burst event.
- Typhoon & Rainstorm Coverage – If your home becomes uninhabitable as a result of a Tropical Cyclone Warning Signal No. 8 or above, or a Black Rainstorm Warning, we will reimburse your temporary accommodation and meal expenses. In addition, if your home is left without a water or electricity supply for six consecutive hours due to a Tropical Cyclone Warning Signal No. 8 or above, you may also be entitled to a temporary accommodation and meal allowance, subject to the policy terms and conditions.
- Optional building structure coverage: Covers structural elements of the property, including ceilings, walls and flooring, with reinstatement costs of up to HKD 200,000,000. The optional coverage also meets the requirements of most mortgage lenders, allowing property owners to address both their fire insurance and home insurance needs seamlessly under a single policy, protecting the building structure, household contents and third-party liabilities.
- 24-hour emergency support – Provides emergency referrals to plumbers, locksmiths and electricians, helping to address unexpected household issues when you need assistance most.
- Loss of rent cover (for rental properties): If your property becomes uninhabitable due to accidental damage to household contents and requires repairs before it can be leased again, this optional cover can compensate you for the resulting loss of rent of up to HKD 75,000.
Protect your home with SmartHome Plus
There is no place like home. Get your home the protection it deserves in just a few minutes, whether you own it or rent it.
Be prepared, enjoy greater peace of mind
Given Hong Kong's densely populated environment, increasingly frequenency of extreme weather events and the unpredictability of household accidents, it pays to be prepared. Rather than discovering gaps in your protection after an incident occurs, it is wise to take early steps to safeguard your home and belongings. AXA SmartHome Plus offers flexible and customisable coverage options to suit different needs. Whether you are a property owner or a tenant, you can choose the protection that best suits your circumstances and enjoy more comprehensive protection for your home.
Insurance plans vary in coverage and are subject to their respective terms and conditions. For detailed terms and conditions of the plan, please refer to the relevant product brochure and policy contract.
No warranty or responsibility is assumed by AXA Hong Kong and our related or holding companies regarding non-infringement, security, accuracy, completeness, adequacy, reasonableness, fitness for a purpose or free from computer viruses in connection with the information and materials provided. AXA Hong Kong and our related companies and holding companies do not accept any liability for any loss, damage, cost or other expense, whether wholly or partially, directly or indirectly, arising from any error, inaccuracy or omission of the information and materials to the extent that such liability is not excluded by law.
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