Typhoon Bavi Approaches, Insurance Brokers Advise Strengthening Coverage with Typhoon and Flood Insurance for Homes

Taipei, Aug. 8 (CNA) As Typhoon Bavi continues to approach Taiwan, insurance brokers are reminding the public that basic coverage for typhoon and flood damage is included in home fire insurance policies without the need for additional premiums. In the event of typhoon-related losses, individuals should first photograph or video record the damage and water levels, and keep the scene intact to avoid affecting subsequent claims calculations.

In the face of approaching strong winds and heavy rains, insurance broker Gong Sheng Insurance Brokerage today issued a press release advising the public to utilize typhoon and flood insurance for homes to strengthen their coverage. In the past, many people mistakenly believed that they needed to purchase a separate "Residential Typhoon and Flood Insurance" policy for their property to be protected.

Chen De-cheng, General Manager of Gong Sheng Insurance Brokerage, pointed out that the Financial Supervisory Commission (FSC) has proactively included "Residential Typhoon and Flood Damage Compensation Insurance" within the scope of coverage for "Residential Fire and Earthquake Basic Insurance" since January 1, 2020. As long as individuals have home fire insurance, they automatically receive this basic coverage for typhoon and flood damage without needing to purchase additional insurance.

Gong Sheng Insurance Brokerage stated that Residential Typhoon and Flood Damage Compensation Insurance operates on a limited compensation mechanism. Regardless of the construction cost of the house, each residential property is subject to a fixed maximum compensation limit based on its location. During the insurance period, if the insured property suffers direct losses due to a typhoon or flood, the insured can apply for compensation in one of two ways:

First, compensation can be claimed based on the actual value of the loss, with a maximum compensation limit determined by the corresponding limit in the "Residential Typhoon and Flood Damage Compensation Insurance Limits Table" of the policy, based on the area where the insured building is located. Second, if the insured property experiences a hazardous event that meets the "Criteria for Flood Disaster Relief," meaning the residence is flooded to a depth of 50 centimeters or more, the compensation limit will also be based on the corresponding limit in the table for the area where the insured building is located.

Gong Sheng Insurance Brokerage indicated that if homes and furniture are unfortunately damaged by a typhoon, individuals with "Residential Fire and Earthquake Basic Insurance" need to prepare a claim application, a copy of the property deed or other proof of ownership, photos of the damage, and a list of losses to submit to the insurance company for a claim.

Cheng Chih-hung, Senior Sales Manager of Gong Sheng Insurance Brokerage's Southern Region, reminded the public that they must have purchased "Residential Fire and Earthquake Basic Insurance" before the typhoon occurs to receive compensation. If insurance is purchased urgently after a typhoon warning has been issued or damage has occurred, compensation will not be provided. It is recommended to purchase home fire insurance online to effectively increase protection for homes or rental properties.

Cheng Chih-hung added that "Residential Fire and Earthquake Basic Insurance" only covers the building itself and its interior movable property, and does not include outdoor vehicles. He also reminded the public that they must first photograph or video record the damage and water levels immediately after the event, and keep the scene intact to avoid affecting subsequent claims calculations.

According to the Residential Typhoon and Flood Damage Compensation Insurance Limits Table, compensation limits across Taiwan are divided into three tiers based on region: NT$7,000, NT$8,000, or NT$9,000. (Editor: Lin Chia-han) 1150708)

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