What Property Insurance Should a Phuket Condominium Buyer Arrange—and What Does the Building Policy Cover?

Concise answer

A Phuket condominium’s building insurance does not automatically protect everything inside an owner’s unit.

The condominium juristic person may arrange insurance covering the structure, common property and shared systems. However, the exact scope, insured value, exclusions, deductibles and disaster coverage depend on the policy.

An individual owner may still need separate insurance for:

• Furniture and personal belongings
• Appliances and electronics
• Interior improvements and fixed installations
• Water damage inside the unit
• Accidental damage
• Theft
• Public liability
• Damage caused to neighbouring units
• Alternative accommodation
• Loss of rent
• Tenant-related risks
• Domestic employees
• Mortgage requirements

Before buying, the purchaser should obtain the building’s current insurance schedule and policy summary rather than relying on a statement that the condominium is “fully insured.”

Detailed explanation

1. Condominium ownership contains private and common property

A condominium owner normally owns:

• The registered private unit
• A proportional interest in the condominium’s common property

Under the Condominium Act, common property includes structural and shared elements such as:

• Land on which the condominium stands
• Structural components
• Common buildings and facilities
• Shared equipment
• Fire-protection systems
• Lighting and ventilation systems
• Drainage
• Wastewater treatment
• Waste-disposal systems
• Other property maintained for collective use

The distinction between private and common property is important because it influences who arranges insurance and who manages a claim. HqhL9WPR3TfdDtXr1JvEzxnu.pdf

2. The juristic person normally manages common property

The condominium juristic person manages the common property according to:

• Condominium Act
• Registered condominium regulations
• General-meeting resolutions
• Approved budget
• Management contracts

Insurance premiums for the building or common property may form part of the condominium’s shared expenses.

The Department of Lands has confirmed that building-insurance premiums may be incorporated into common expenses where properly provided for under the applicable regulations and resolutions. dol.go.th

3. A building policy is not the same as unit-owner insurance

A condominium building policy may protect the juristic person’s insurable interest in:

• Main structure
• Foundations
• Roof
• External walls
• Common corridors
• Lifts
• Common plant and machinery
• Swimming pools
• Shared electrical systems
• Fire-safety equipment
• Common furniture
• Management-office contents

The owner’s policy may protect:

• Furniture
• Appliances
• Personal property
• Interior decoration
• Owner-installed fixtures
• Liability to neighbours
• Alternative accommodation
• Rental income

There can be gaps between the two.

4. “Fully insured” is not a precise answer

A buyer may be told:

• The building has insurance.
• Everything is covered.
• Insurance is included in the common fee.
• The developer has arranged full protection.
• Owners do not need separate insurance.

These statements are not sufficient.

The buyer should request:

• Insurer’s name
• Policy number
• Policy period
• Named insured
• Property insured
• Total insured value
• Covered events
• Exclusions
• Deductibles
• Sub-limits
• Endorsements
• Claims history
• Latest renewal confirmation

The relevant question is not simply whether a policy exists. It is whether that policy responds to the particular loss.

5. The named insured matters

The policy may name:

• Condominium juristic person
• Developer
• Management company
• Bank
• Individual unit owners
• Several parties jointly

A policy issued only in the developer’s name may be inappropriate after the condominium has been registered and units have been transferred.

The buyer should confirm that the policy identifies the correct legal party with an insurable interest in the property.

6. The insured property must be identified

A building policy may cover only specified property.

It might include:

• Entire registered condominium structure
• Common areas only
• Particular buildings within a larger development
• Shared machinery
• Juristic-person contents
• External facilities
• Car parks

It may exclude:

• Individual unit contents
• Interior fit-out
• Furniture packages
• Owner alterations
• Rental equipment
• Motor vehicles
• Cash and valuables
• Commercial premises
• Separate hotel facilities

In a mixed-use project, the buyer should determine whether the condominium, hotel, retail and leisure components have separate policies.

7. Fire cover should not be assumed to cover every risk

A basic fire policy may cover fire and certain related perils, but it may not automatically provide comprehensive protection against:

• Flood
• Storm
• Earthquake
• Tsunami
• Water leakage
• Burst pipes
• Theft
• Accidental damage
• Electrical damage
• Machinery breakdown
• Public liability
• Business interruption
• Loss of rent

The Office of Insurance Commission publishes standard residential fire and catastrophe policy materials, but the cover actually purchased depends on the issued policy, schedule and endorsements. oiceservice.oic.or.th

8. Phuket’s natural-hazard exposure requires specific review

Relevant Phuket risks can include:

• Intense rainfall
• Local flooding
• Storm damage
• Wind-driven rain
• Lightning
• Landslip
• Coastal exposure
• Salt-air corrosion
• Earth movement
• Tsunami
• Falling trees
• Drainage failure

A reference to “natural disasters” should not be accepted without checking the exact policy definition and limits.

The Office of Insurance Commission explains that residential and catastrophe policies can provide different levels of protection for flood, storm, earthquake, tsunami, hail and other natural events. The limit depends on the policy purchased. cit.oic.or.th

9. Flood cover may have a low sub-limit

A policy may mention flood but provide only limited compensation.

For example, flood protection may be subject to:

• Separate insured limit
• Percentage of total insured value
• Event deductible
• Waiting period
• Geographic restriction
• Basement exclusion
• Contents sub-limit
• Aggregate annual limit
• Exclusion for gradual water ingress

The word “covered” does not establish whether the limit is adequate.

10. Storm and wind-driven rain may be treated differently

A policy may cover direct storm damage but dispute loss caused by:

• Poor maintenance
• Deteriorated sealant
• Open windows
• Defective waterproofing
• Gradual leakage
• Construction defects
• Corrosion
• Unrepaired prior damage

If rain enters because the roof or façade has deteriorated over time, the insurer may distinguish that from sudden storm damage.

Insurance should not be treated as a replacement for maintenance.

11. Water damage is a common condominium risk

Water damage may originate from:

• Unit above
• Shared pipe
• Private pipe
• Roof
• External wall
• Balcony
• Air-conditioning drain
• Swimming pool
• Fire-suppression system
• Wastewater system
• Stormwater drainage

Several parties may become involved:

• Affected owner
• Neighbouring owner
• Juristic person
• Management company
• Contractor
• Developer
• Building insurer
• Individual owner’s insurer

The source of the water and classification of the damaged property will affect responsibility.

12. The person responsible and the insurer are separate questions

A leak may have been caused by another owner, but the affected owner may still claim first under their own policy.

The insurer may then pursue recovery against the responsible party through subrogation.

Alternatively:

• Building insurer may cover common-property damage.
• Unit-owner insurer may cover contents and improvements.
• Responsible owner’s liability policy may cover damage to neighbours.
• Developer may be responsible for a proven construction defect.
• No policy may respond if the loss falls within an exclusion.

The owner should notify relevant insurers promptly rather than waiting for the parties to agree on fault.

13. Interior improvements may fall into an insurance gap

A unit may have been sold in basic condition and later upgraded with:

• Built-in kitchen
• Wooden flooring
• Ceiling systems
• Designer lighting
• Wardrobes
• Bathroom improvements
• Smart-home equipment
• Custom doors
• Air-conditioning
• Decorative wall finishes

The building policy may cover the original structure but not owner-installed improvements.

The unit policy should describe these items accurately and insure them at an appropriate reinstatement value.

14. Furniture packages require separate attention

An off-plan condominium may include:

• Loose furniture
• Curtains
• Beds
• Sofas
• Televisions
• Kitchen appliances
• Decorative items
• Rental equipment

These items may not be part of the insured building.

The buyer should establish:

• Legal owner of the furniture
• Replacement value
• Whether contents cover applies
• Whether rental use is disclosed
• Whether theft requires evidence of forced entry
• Whether accidental damage is included
• Treatment of wear and tear

15. Personal belongings may have sub-limits

A contents policy may restrict claims for:

• Jewellery
• Watches
• Artwork
• Cash
• Collectibles
• Cameras
• Computers
• Sporting equipment
• Business equipment
• Documents

High-value property may need:

• Individual declaration
• Valuation
• Photographs
• Purchase evidence
• Separate insured limit
• Special endorsement
• Security conditions

A general contents amount should not be assumed to cover every valuable item fully.

16. Public-liability cover protects against third-party claims

An owner may face a claim if:

• Water from the unit damages the apartment below.
• A guest is injured inside the unit.
• An object falls from a balcony.
• A domestic employee causes damage.
• A tenant damages common property.
• A fire originating in the unit spreads.
• Renovation work injures another person.

Public-liability insurance may cover qualifying legal liability and defence costs, subject to the policy.

The limit should be reviewed against the potential damage—not merely the value of the owner’s furniture.

17. The juristic person’s liability policy may not protect the owner

The condominium may maintain public-liability insurance for:

• Common areas
• Juristic person
• Building manager
• Shared facilities
• Staff activities

That does not necessarily cover an individual owner’s private liability arising inside the unit.

The owner should confirm whether they are included as an insured party and under what circumstances.

18. Loss-of-rent protection must be selected deliberately

Rental investors may want protection if insured damage makes the unit uninhabitable.

Loss-of-rent cover may depend on:

• An insured physical-damage event
• Existing tenancy
• Documented rental income
• Maximum indemnity period
• Waiting period
• Occupancy status
• Legal rental use
• Policy limit
• Mitigation efforts

It does not normally compensate for:

• Poor rental demand
• Seasonal vacancy
• Operator default
• Regulatory restrictions
• Unlicensed hotel operation
• Routine repairs
• Renovation
• A tenant choosing to leave without insured damage

19. Short-term rental use must be disclosed

A policy priced for ordinary owner occupation may not automatically cover:

• Daily rental
• Frequent guest turnover
• Hotel-like operation
• Commercial rental activity
• Rental-pool participation
• Property-management activities

The owner should describe the actual use accurately.

Failure to disclose a material use may create problems when a claim is reviewed.

Insurance does not legalise a rental operation that otherwise requires a licence or approval.

20. Long-term tenancy also changes the risk

Where the unit is rented under a longer-term agreement, the owner should consider:

• Landlord contents
• Tenant damage
• Public liability
• Loss of rent
• Malicious damage
• Theft by tenant
• Vacancy between tenants
• Emergency accommodation
• Legal-expense cover where available

The tenant may separately insure personal possessions and personal liability.

21. Vacancy conditions can restrict cover

Many policies apply special conditions when a property remains unoccupied for an extended period.

Possible consequences include:

• Reduced theft cover
• Exclusion of water damage
• Requirement to shut off water
• Inspection requirements
• Security requirements
• Reduced claim payment
• Complete suspension of certain coverage

This is particularly relevant to Phuket holiday homes occupied only part of the year.

The owner should tell the insurer how frequently the unit will be occupied.

22. Renovation may require notification

Cover can be affected while the unit is:

• Under renovation
• Structurally altered
• Vacant during works
• Occupied by contractors
• Storing construction materials
• Having electrical or plumbing systems changed

The owner should confirm:

• Juristic-person approval
• Contractor’s insurance
• Public-liability cover
• Workers’ compensation arrangements
• Existing policy notification
• Cover for the works
• Cover for materials
• Responsibility for damage to common property

The contractor’s promise to repair damage is not equivalent to an insurance policy.

23. Construction defects are often excluded

Property insurance is generally designed for uncertain insured events—not to guarantee construction quality.

A policy may exclude or limit loss arising from:

• Defective design
• Defective workmanship
• Defective materials
• Wear and tear
• Gradual deterioration
• Corrosion
• Inadequate maintenance
• Pre-existing damage
• Inherent defects

However, resulting damage from an otherwise covered event may be treated differently depending on the wording.

A defect claim against the developer and an insurance claim should be evaluated separately.

24. The total insured value must be adequate

A building can be insured but materially underinsured.

The relevant value is generally based on reconstruction or reinstatement—not the aggregate market price of all units.

Market value can include:

• Land value
• Location premium
• View
• Foreign-freehold premium
• Investment demand
• Developer brand

These do not necessarily equal the cost of rebuilding.

The Office of Insurance Commission provides tools and information concerning fire-insurance sums insured and building-cost estimates. oiceservice.oic.or.th

25. Underinsurance can reduce a claim

If the insured value is below the appropriate reinstatement value, the policy may apply an average or proportional-settlement provision.

This can affect even a partial loss.

For illustration only:

The actual settlement depends on the issued policy.

26. Deductibles determine who funds the first part of a loss

A deductible is the amount retained by the insured before the insurer pays.

There may be different deductibles for:

• Fire
• Flood
• Storm
• Earthquake
• Water damage
• Machinery breakdown
• Public liability
• Accidental damage

In a condominium claim, the governing documents or meeting resolution may determine how a deductible is funded.

Possible outcomes include payment by:

• Juristic person
• Sinking fund
• All co-owners
• Owner of the affected unit
• Owner responsible for the damage
• Several parties

The buyer should review large disaster deductibles in particular.

27. A lender’s insurance requirement may be limited

A bank financing a condominium purchase may require fire or property insurance.

That does not necessarily mean the policy adequately protects the owner.

The lender may focus on:

• Secured property
• Outstanding loan
• Bank’s interest
• Fire risk
• Policy assignment

The owner may still need additional protection for:

• Contents
• Improvements
• Liability
• Alternative accommodation
• Rental income
• Natural hazards

28. Mortgage insurance is not property insurance

Mortgage-reducing term assurance or credit-life insurance generally addresses the borrower’s death or specified personal risks connected with the loan.

It is different from insurance protecting the physical property.

A buyer should not assume one policy replaces another.

29. Foreign ownership does not prevent insurance

A foreign owner can generally arrange appropriate property insurance in Thailand, subject to:

• Insurer’s underwriting
• Identification requirements
• Property details
• Declared use
• Payment
• Policy terms

The buyer should use a properly authorised insurer, agent or broker.

The Office of Insurance Commission provides services for checking licensed insurance agents and brokers and searching approved non-life insurance products. oiceservice.oic.or.th

30. Policy language should be understood before purchase

The owner should understand:

• Thai wording
• English translation
• Which version legally controls
• Definitions
• Exclusions
• Conditions
• Duties after a loss
• Claim deadlines
• Dispute procedure

An informal English summary may be helpful, but it may not replace the issued Thai policy wording.

Material provisions should be reviewed with a qualified insurance professional or Thai lawyer where necessary.

31. Claims must be reported promptly

Following damage, the owner or manager should:

1. Protect people from immediate danger.
2. Contact emergency services where required.
3. Take reasonable steps to prevent further loss.
4. Notify the juristic-person manager.
5. Notify relevant insurers.
6. Photograph and video the damage.
7. Preserve damaged items where safe.
8. Identify the likely source.
9. Obtain incident and witness records.
10. Avoid permanent repairs until inspection, except where necessary to prevent further damage.
11. Keep repair quotations, invoices and payment evidence.
12. Cooperate with the loss adjuster.

Delay can make causation and claim assessment more difficult.

32. The owner should not admit liability prematurely

After a leak, fire or accident, an owner may feel pressure to promise immediate payment.

Before admitting legal responsibility, the owner should:

• Notify insurer
• Preserve evidence
• Identify cause
• Review policy conditions
• Obtain technical advice
• Seek legal advice where the loss is substantial

An unauthorised admission or settlement can potentially prejudice insurance rights.

Emergency assistance and mitigation can still be provided without making a final legal admission.

33. Claims history can reveal building risk

Before purchasing, the buyer may ask about:

• Previous fires
• Repeated water leaks
• Flood claims
• Storm damage
• Lift incidents
• Pool leakage
• Structural claims
• Public-liability claims
• Claim refusals
• Policy cancellations
• Premium increases

A history of repeated losses may indicate:

• Design problem
• Maintenance failure
• Inadequate drainage
• Ageing pipework
• Weak risk management
• Future premium increases
• Higher deductibles
• Coverage exclusions

The juristic person may not disclose confidential personal information, but it should be able to explain material building-level risks.

34. The policy must be renewed

A policy existing when the buyer signs a contract may expire before transfer.

The buyer should confirm:

• Current expiry date
• Renewal arrangements
• Premium payment
• No cancellation notice
• Continuing insured value
• Material changes in coverage
• New exclusions or deductibles

For an off-plan purchase, the developer’s construction insurance is not necessarily the policy that will protect the completed condominium after handover.

35. Developer insurance during construction is different

Before completion, a developer or contractor may maintain:

• Contractors’ all-risks insurance
• Public-liability insurance
• Workers’ compensation insurance
• Professional-indemnity insurance
• Construction plant and equipment insurance

After completion, the condominium juristic person normally needs an appropriate operational building policy.

The buyer should identify when one insurance arrangement ends and the next begins.

36. Shared facilities can complicate claims

A Phuket development may contain:

• Condominium
• Hotel
• Villas
• Retail premises
• Beach club
• Shared roads
• Shared utilities
• Common parking
• Central plant

The buyer should establish:

• Who owns each facility
• Which policy covers it
• How premiums are allocated
• Who files claims
• Who receives insurance proceeds
• Who pays deductibles
• Whether condominium owners fund hotel-related risks
• What happens if one policy is cancelled

The fact that owners may use a facility does not necessarily mean the condominium juristic person owns or insures it.

37. Insurance proceeds must be used appropriately

Where the juristic person receives insurance proceeds for common-property damage, the buyer should understand:

• Who controls the funds
• Whether co-owner approval is required
• Repair obligations
• Contractor appointment
• Treatment of deductibles
• Treatment of underinsurance
• Funding of any shortfall
• Accounting and reporting
• Position if reconstruction is impractical

A major casualty can require legal, engineering, financial and insurance advice.

38. Insurance cannot remove every ownership risk

Even a strong insurance programme may not cover:

• Poor maintenance
• Construction defects
• Gradual corrosion
• Illegal use
• Regulatory fines
• Market-value decline
• Developer insolvency
• Operator default
• Ordinary vacancy
• Guaranteed-return failure
• Intentional damage by the insured
• Undeclared commercial activity
• Excluded natural hazards

Insurance is one layer of due diligence and risk management—not a substitute for title, legal, building and financial checks.

Insurance responsibility comparison

What to request before purchasing

Practical buyer checklist

1. Obtain the building’s current insurance schedule.
2. Confirm the policy period.
3. Confirm the named insured.
4. Confirm that the condominium juristic person is properly protected.
5. Identify every building and facility covered.
6. Check the total insured value.
7. Ask when the reinstatement value was last reviewed.
8. Compare insured value with a current professional valuation where appropriate.
9. Review the full policy wording.
10. Review all endorsements.
11. Identify the applicable exclusions.
12. Identify every deductible.
13. Check fire coverage.
14. Check flood coverage.
15. Check storm coverage.
16. Check earthquake and tsunami coverage.
17. Check water-leakage coverage.
18. Check machinery-breakdown coverage.
19. Check public-liability coverage.
20. Determine whether private-unit interiors are included.
21. Determine whether owner-installed improvements are included.
22. Determine whether loose furniture and appliances are included.
23. Arrange separate contents cover where necessary.
24. Arrange owner’s liability cover.
25. Consider loss-of-rent cover for an investment unit.
26. Consider alternative-accommodation cover for a residence.
27. Disclose short-term or long-term rental use accurately.
28. Check vacancy conditions.
29. Notify the insurer before substantial renovation.
30. Verify the contractor’s insurance.
31. Review recent building claims.
32. Investigate repeated water leaks or flood incidents.
33. Confirm how deductibles are allocated.
34. Confirm how any underinsured shortfall would be funded.
35. Review shared-facility insurance arrangements.
36. Confirm construction insurance remains effective until completion for an off-plan purchase.
37. Confirm operational insurance begins at handover.
38. Check any lender’s insurance requirements.
39. Do not confuse mortgage-life cover with property insurance.
40. Use an authorised insurer, agent or broker.
41. Keep policy documents, inventories, photographs and purchase receipts.
42. Review cover annually and after renovations or changes of use.
43. Obtain independent insurance advice for a high-value unit.
44. Obtain Thai legal advice for a substantial claim or disputed responsibility.

Greg’s professional perspective

Insurance is often treated as a box to tick during a condominium purchase: the buyer asks whether the building is insured, receives a reassuring “yes,” and moves on.

I would want a more precise answer.

Before recommending a condominium, I want to know:

1. What property is insured?
2. For how much?
3. Against which risks?
4. What is excluded?
5. What must the individual owner insure separately?
6. How would a major deductible or uninsured shortfall be funded?

This is especially important in Phuket, where heavy rain, coastal exposure, long vacant periods and rental use can materially affect risk.

The building policy and the owner’s policy should work together. The building policy protects the collective asset within its terms. The individual policy should address the owner’s interior improvements, contents, liability and intended use.

A buyer should never discover that gap only after a fire, flood or water leak. Reviewing the insurance position before transfer is part of helping buyers Invest with Confidence.

Applicable date

Current as reviewed on: 28 October 2026

Thai insurance regulation, approved policy wording, condominium regulations, lender requirements and insurer underwriting practices may change. This entry should be reviewed following a relevant legislative, regulatory, judicial or Office of Insurance Commission change.

Location and property types

Location: Phuket, Thailand
Primary property type: Registered condominium units
Ownership types: Foreign freehold, Thai freehold and leasehold interests
Transaction types: Off-plan purchases, completed developer units, resales and rental investments
Buyer type: International purchasers, investors, retirees, holiday-home buyers and owner-occupiers

Verified legal and authoritative sources

• Condominium Act B.E. 2522 (1979), Sections 4 and 13–17 — distinguishes private property, common property and shared ownership.
• Condominium Act, Section 18 — provides for shared expenses connected with common property and condominium operation.
• Condominium Act, Section 32 — requires registered regulations addressing common-property management, use and co-owner expenses.
• Condominium Act, Sections 35–38 — addresses management and representation of the condominium juristic person.
• Condominium Act, Section 40 — provides for advance expenses, capital and other funding required for juristic-person activities.
• Office of Insurance Commission — Thai authority regulating insurers, policy forms, insurance agents and brokers.
• Office of Insurance Commission online services — insurer, policy, agent and broker information and fire-insurance resources. oiceservice.oic.or.th
• OIC residential fire and catastrophe policy — official policy wording and schedule framework. oiceservice.oic.or.th
• OIC insurance complaint portal — official channel for qualifying insurance complaints. complaintportal.oic.or.th
• Department of Lands — official authority administering the Condominium Act and registered condominium regulations.
• Phuket Provincial Land Office — responsible for registration matters concerning Phuket condominium ownership.
• Condominium juristic person — responsible for managing common property and maintaining the building’s applicable insurance and financial records.

Related questions

• Is condominium insurance compulsory in Thailand?
• Does a Phuket condominium common fee include insurance?
• What does the juristic person’s building insurance cover?
• Does building insurance cover the inside of my unit?
• Who insures condominium furniture and appliances?
• Are owner-installed improvements covered?
• Do I need contents insurance for a Phuket condominium?
• Does the building policy cover water leaks?
• Who pays if my unit damages the unit below?
• Does property insurance cover construction defects?
• Is flood insurance automatically included?
• Is storm and wind-driven rain covered?
• Does Phuket condominium insurance cover earthquakes or tsunami?
• What is an insurance deductible?
• Who pays the building-policy deductible?
• How can I tell whether a condominium is underinsured?
• What is reinstatement value?
• Does insurance cover the market value of my unit?
• Do I need public-liability insurance?
• Can a foreign owner obtain property insurance in Thailand?
• Does a rental investor need different insurance?
• Does insurance cover short-term rental guests?
• Can rental use invalidate an ordinary owner-occupier policy?
• What happens if the unit remains vacant?
• Does property insurance cover loss of rent?
• What insurance is needed during renovation?
• Should the contractor have separate insurance?
• Is bank-required fire insurance sufficient?
• Is mortgage insurance the same as property insurance?
• What documents should I request from the condominium juristic person?
• What should I do immediately after water, fire or storm damage?
• How can I file an insurance complaint in Thailand?

Knowledge-catalog administration

Disclaimer

This entry provides general educational information and does not constitute legal, insurance, property, engineering, tax, investment or financial advice. Insurance protection depends on the issued policy, schedule, endorsements, exclusions, deductibles, insured value, property condition, occupancy, declared use and facts of the loss. Buyers and owners should obtain case-specific advice from authorised insurance professionals and qualified independent Thai legal or technical advisers before relying on any policy or making a material decision.