Property Insurance Renewal in Indonesia Why Updating Your Sum Insured Matters.
- Be Protected Indonesia
- 21 hours ago
- 3 min read
When a property insurance renewal arrives many owners focus mainly on the premium and coverage conditions. While these points are important one key element is often overlooked the total sum insured for both the building and its contents.
In Indonesia costs related to construction furniture and materials increase regularly. If your insured values remain unchanged year after year your coverage may slowly fall behind the real value of your property. This is why renewal time is the ideal moment to review and adjust your sums insured.
At Be Protected Indonesia our role is to help you stay properly protected not only on paper but also in real life when a claim occurs.
1. Understanding the total sum insured
The total sum insured represents the maximum amount your insurer can pay in case of a covered claim.
For property insurance this usually includes two main parts:
The building value which covers the structure walls roof and fixed elements
The contents value which covers furniture appliances decoration and equipment
These amounts should always reflect the replacement cost meaning the cost to rebuild or replace today not the original purchase price.
2. Why inflation impacts property insurance in Indonesia
Even if your property has not changed, inflation still affects the cost of rebuilding or replacing it.
In Indonesia we regularly observe increases in
Construction materials
Labor costs
Imported furniture and equipment
Renovation and finishing expenses
As a result the real replacement cost of your property increases over time. If your sums insured stay the same your coverage may no longer match the actual cost in case of damage.
3. Our recommendation increasing sums insured by around 5%
At renewal time we generally recommend increasing both the building and contents sums insured by approximately 5%.
This adjustment is not mandatory and your policy can be renewed without any increase.
However this small update helps keep your insurance aligned with inflation and current market costs while offering better protection in case of a claim.
4. Why this matters in case of a claim
In the event of a claim insurers assess losses based on the replacement value of the damaged property or items.
If a property is underinsured
The insurer may apply underinsurance rules
The claim payment can be reduced proportionally
The property owner may have to cover part of the cost personally
By slightly increasing your sums insured you reduce the risk of being underprotected at the moment you need your insurance the most.
Is increasing the sum insured mandatory?
No increasing your sum insured is not mandatory.
However it is considered best practice especially for
Villas and rental properties
Properties owned long term
Homes with high value or imported contents
Our role is to clearly explain the options so you can make an informed and comfortable decision.
5. How Be Protected Indonesia supports you at renewal
At Be Protected Indonesia renewal time is more than a simple administrative step.
We support you by:
Reviewing your building and contents values
Explaining inflation impact and market trends
Adjusting sums insured when appropriate
Clearly explaining premium changes and coverage impact
Most importantly we stay by your side during claims to ensure your policy works as expected.
Conclusion
Property insurance renewal is the perfect moment to make sure your coverage still reflects reality.
A simple adjustment of around 5% to your building and contents sums insured can significantly improve your protection against rising costs and reduce unpleasant surprises in case of a claim.
If you would like us to review your property insurance or discuss your renewal options our team at Be Protected Indonesia is always here to help you protect your property with confidence.
