Ulsan Group Residential-Commercial Fire Insurance Underwriting … Insurance May Be Less Than Actual Damage

Entry 2020.10.10 16:21

Victims are paying attention to how much compensation residents who sustained damage from the massive fire in the Ulsan multi-purpose apartment building on the 8th will receive compensation. Under current law, apartments on the 16th floor and above are subject to insurance against Mandatory fires, so residents can receive insurance payments. However, mandatory group insurance does not have a large amount of coverage, so if you do not buy individual insurance separately, the amount of insurance may be less than the actual level of damage.

According to the city of Ulsan on the 10th, ‘Samhwan Art Nouveau’, where the fire occurred, subscribed to the Fire Insurance of Samsung Fire Insurance Group. It is included in the residents’ management fee and underwrites group insurance under the name of the ‘Resident Board’. Compensation for fire damage is up to 150 million won in case of death and 30 million won in case of injury. In the case of property damage, it is up to 1 billion won per accident.

Insurance premiums are included in the monthly apartment management fee. The insurance amount for Samhwan Art Nouveau was 46.2 billion won for buildings, 6.3 billion won for household items, and 1 billion won for property. However, this amount is the maximum amount that can be compensated for fire damage. The final amount of insurance is determined through a damage assessment process, such as due diligence for each apartment.

Once the insurance amount is determined, it is divided by household. The entity that receives the insurance money is the actual resident who pays the management fees.

Fire insurance pays for the cost of repairing the burned building as insurance money. The amount of insurance against the amount of damage depends on the insurance contract. In the case of the 13th floor and above, some generations have been known to have burned. Consequently, in the case of households that have not subscribed to individual fire insurance, there is a possibility that the amount of compensation covered by the group insurance is insufficient for the actual damage scale.

It is reported that the fire department will carry out an investigation into the scale of the damage on the 12th. There are also observations that the total scale of fires from this fire will exceed 10 billion won.

An official from the Korea Fire Insurance Association said: “In the past, even if a tenant paid insurance premiums as a management fee, there were many cases where insurance coverage was not guaranteed in the event of a fire.” did.