How Home Insurance Claims Work After the Wang Fuk Court Fire: Reviewing Home Insurance Claims in Hong Kong

The Wang Fuk Court fire in Tai Po showed how a single high-rise incident can generate thousands of separate home insurance claims in Hong Kong – from building damage and burnt contents to temporary accommodation and loss of rent. Rather than revisiting every detail of the blaze, this article uses Wang Fuk Court as a real-world case study to help you review your own protection and understand how home insurance claims work in Hong Kong after a major fire.

From Fire to Claim: What Actually Gets Paid?

Major high-rise fires usually trigger several different types of insurance policies at once. At Wang Fuk Court, there were claims under the estate’s main building policy, individual home contents policies, and long-term covers such as life or personal accident plans, all responding in different ways.

The building policy is designed to deal with structural repair and common areas, while contents and householders policies focus on what is inside each flat. On top of that, some residents may have had cover for alternative accommodation or loss of rent, which becomes crucial when an entire block is declared temporarily uninhabitable.

Building Policy vs. Home Contents: Who Covers What?

One of the most common surprises after a fire is discovering that the “building insurance” arranged by the owners’ corporation does not automatically replace your furniture, clothing, appliances, or personal items. That master policy usually protects the structure, lifts, corridors, and other shared facilities.

Home contents or householders insurance is what normally pays for damaged or destroyed belongings inside the flat and, in some cases, interior improvements such as built-in cabinets or upgraded flooring. Without a separate contents policy, many residents only receive compensation for the physical building, not the items that made the flat liveable.

How Insurers Assess Home Insurance Claims in Hong Kong

Once a claim is notified, insurers will normally arrange an inspection or appoint a loss adjuster, especially after a large fire. Their role is to confirm the cause of loss, estimate the cost of repairs or replacement, and check how the policy terms apply to the actual damage.

For contents, you can expect to be asked for details such as what was lost, when it was bought, and approximate values, with photos, receipts, or bank records used where available. For building and interior works, contractors’ quotations, management office reports, and official fire investigation documents often form part of the evidence bundle.

Why Sums Insured and Underinsurance Matter So Much

Large incidents like Wang Fuk Court expose whether sums insured were realistic. If a contents policy has not been updated for years, the total declared value for belongings may be far below the true replacement cost of everything in the flat.

Many Hong Kong home policies apply an “average” or proportional settlement clause when underinsurance is discovered. That means if you insure only half of the genuine value, the insurer may pay only half of a valid claim, even if you did not lose everything. Regularly reviewing your sums insured is therefore just as important as buying the policy in the first place.

Fire and Smoke: Check the Fine Print

Most standard home insurance products in Hong Kong list fire as a core insured peril and also respond to resulting smoke damage. However, cheaper or stripped-down plans sometimes have narrower coverage, higher deductibles, or exclusions linked to renovation works, illegal wiring, or poor maintenance.

Before a claim ever arises, it is worth checking that fire, explosion, and smoke are clearly included, and that any special conditions are understood. In high-rise buildings, one neighbour’s mistake can affect many units, so exclusions related to negligence or non-compliance should be read carefully.

Alternative Accommodation and Loss of Rent

In a serious estate fire, the question “Where will we live now?” can be more urgent than “Who will pay for the ceiling?” Temporary housing, storage costs, and extra daily expenses can quickly become the biggest financial strain for families.

Many home insurance policies in Hong Kong offer cover for alternative accommodation or loss of rent if the flat is uninhabitable following an insured event, usually with a monthly limit and a maximum duration. If your current policy does not include this, or the limits are very low compared to local rental prices, it may be time to upgrade.

Post–Lunar New Year: A Smart Time to Review Your Cover

Fire risks often rise around Lunar New Year because of candles, cooking, and festive decorations. Using the weeks after the holidays as an annual “fire cover review” point can help you keep protection in line with real-life risks.

A simple checklist includes: confirming you have both building and contents cover where needed, updating sums insured, checking that fire and smoke are included perils, and reviewing alternative accommodation or loss-of-rent benefits. This turns a seasonal peak in risk into a regular reminder to keep your home insurance claims in Hong Kong as straightforward as possible if the worst happens.

How Navigator Can Help with Your Claims

Dealing with multiple insurers, technical wording, and detailed claim forms is challenging at the best of times, and even more so when you are displaced from your home. Many households only discover gaps or ambiguities in their policies when they are already under pressure.

An independent broker can help you choose suitable home and contents policies before a loss and guide you through home insurance claims in Hong Kong if a major estate fire occurs.

Contact us via our form below or send us a message today to see how we can help you!