Tenants of Hong Kong storage facility unlikely to be covered for fire losses

Tenants who lost possessions in the blaze at SC Storage were unlikely to be able to claim compensation, according to the lawmaker who represents the insurance sector.

Chan Kin-por pointed out that most operators of such mini-storage facilities did not purchase insurance to cover personal losses and that there was a need to step up protection for customers.

A fireman died while tackling the blaze on Tuesday in the Ngau Tau Kok industrial building. The Fire Services Department said there were more than 200 mini-storage cubicles inside the building.

“The operators usually insure against accidents and fire hazards that would affect their business, such as damage of the facilities and hardware etc,” Chan said.

There was also little incentive for tenants to insure their stored possessions as costs were high. Chan said a HK$100 plan that offered HK$100,000 protection came with an administrative cost of about HK$500.

Insured items would be compensated based on their market price – meaning the personal value of the possession would not be taken into account – unless an evaluation had been agreed with the insurer before an accident.