A large number of Hong Kong homeowners do not have home insurance in spite of being aware of its critical role, revealed a new study.
The survey by Blue Cross (Asia-Pacific) Insurance revealed that over 70% of Hong Kong residents are aware of the importance of home insurance, yet 60% stated they don’t own any.
The Hong Kong Home Insurance Survey also highlighted a specific lack of protection amongst tenants, with 81% lacking coverage. Amongst homeowners, 56.7% are currently uninsured. The survey data show that 71.1% of respondents acknowledge the importance of home insurance, yet 57.6% of those who deem it important have not purchased a policy. Furthermore, 77.7% of respondents have not bought fire insurance.
Some of the issues faced in insurance adoption by respondents include a lack of understanding of insurance coverage, concerns about premium costs, and optimism bias, with 23.8% of respondents believing that accidents will not happen to them.
Knowledge gaps are particularly high amongst younger generations and tenants. Nearly 40% of Gen Z respondents cited unclear coverage as their primary reason for not purchasing insurance.
Many tenants mistakenly believe insurance is unnecessary if they do not own high-value items, unaware that policies can cover interior decorations and third-party liability, with 50% of respondents being unaware of the coverage provided by home insurance, which can include extended benefits for pet injuries, electric vehicle chargers, or items stored in mini-storage facilities.