Renting your next home with an extra layer of security

Owning a property is a common goal to which many of us aspire. But in Hong Kong, where real estate prices are among the highest on the planet, purchasing a property is simply unrealistic for lots of people. That explains why a large proportion of residents in Hong Kong rent rather than own their homes. Government data show that in Q3 2024, some 46.2% of domestic household were sole tenants – equating to nearly 1.3 million people.

Today, the residential rental market in Hong Kong is thriving. Demand has gone up thanks to new arrivals to the city, as well as prospective homebuyers who are deterred by high mortgage rates, according to the SCMP. With rents going up, many current residents might feel they are paying too much. The obvious answer is to look for better-value accommodation in different areas of Hong Kong, or downsize, depending on their budgets.

If you are on the hunt for a new rental space, one thing you should never shirk on is purchasing adequate home insurance. You might think that home insurance is something you only need if you own your apartment. Not so. In fact, tenants can purchase insurance that protects both their own belongings and their landlord’s property. Ultimately, doing so will give you greater peace of mind in the event of a range of scenarios occurring – which we’re going to look at now.

Imagine you are about to move to a new apartment and are waiting for your current landlord to return your security deposit. However, your landlord has declared himself bankrupt since you signed your old contract, and all his assets are forfeited to his creditors. Unfortunately, you won’t be seeing your deposit any time soon. But with a tenant home insurance plan, you can recoup some of that loss – sometimes 50% of your deposit or a maximum of HK$10,000 (whichever is lower) – which can be a real help over the short term while you relocate.

In another potential scenario, the professional removal company you have hired to relocate your belongings accidentally drops a box containing ceramic ornaments when they are carrying it into one of the bedrooms. Unfortunately, some of the items are completely smashed, much to your annoyance. But with a home insurance plan that focuses on tenants, you can be covered for up to HK$100,000, or HK$10,000 per item, if the damage was accidental and you had employed the services of a professional removal company. Remember, accidents like this do happen – perhaps more frequently than you’d like to imagine!

One of the worst situations you can find yourself in is to be the victim of a burglary in your own home. As well as the material loss, the physical injuries you could sustain can be have a severe impact on your wellbeing – as well as your mental state. With the right home insurance plan, you can receive a cash benefit to help you cope with your injuries in the event of a break-in.

Ultimately, when you choose to rent a new property, you should make home insurance one of your non-negotiables. So don’t leave anything to chance. Home insurance could protect you from financial hardship when you need it most.

To find out more about MSIG’s Tenant Protector Insurance plan:
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To find out more about our insurance plans:
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