Bali Villa Insurance: What You Need to Know

Imagine waking up one morning and getting a call that an earthquake has damaged your fancy Bali house. At least you're safe, but it's still terrible news! Are you ready for it? In Bali, owning a villa is considered wealthy and a wise investment. However, there are also special risks associated with these homes. With a Bali villa insurance policy, you can have peace of mind that your property is safe from any unexpected problems. In this blog article, Investland Bali will tell you everything you need to know about insuring your villa in this tropical paradise.

Is insurance mandatory?

Unlike many European countries, insurance is optional in Bali. This may surprise newcomers. Many villas remain uninsured despite the increase in property ownership. For example, our partner Zurich, a major insurance provider, covers less than 1,000 villas in Bali, even though over 9,000 will be built in Uluwatu alone by 2023. This shows a significant coverage gap...

What is the reason for this?  It's hard for us to understand - we guess people want to save money, but is it worth it? We make sure that our villas and our client's interests are always protected, so insurance is a non-negotiable for us, and here it's not even that expensive! So we recommend that you insure your property and offer 1-year free insurance on all our developments.

Do you need Bali villa insurance?

Bali's tropical climate poses risks such as floods and earthquakes. Property and liability issues can arise from high tourist turnover. Villa insurance is essential to cover physical, legal, and financial risks. If your villa is uninhabitable as a result of a disaster, insurance can help with the loss of rental income.


Types of Coverage

  1. Property Damage

This covers damage to the villa and its contents from fire, theft, and natural disasters. For instance, a severe storm causing roof damage would be covered.

  1. Liability Protection

Protects villa owners against claims from injuries or damages sustained by third parties on the property. If a guest slips and falls, liability protection covers medical expenses and legal fees.

  1. Loss of Rental Income

For those renting out their villas, this compensates for lost income if the property becomes uninhabitable after a disaster. For example, if an earthquake makes your villa uninhabitable, this insurance covers the lost rental income during repairs.

  1. Natural Disaster Coverage

Given Bali’s susceptibility to natural events like earthquakes and tsunamis, this coverage is essential. If a volcanic eruption damages your villa, this ensures financial recovery.

The Claims Process: What Property Owners Should Know

The effectiveness of any Bali property insurance policy is tested during the claims process. When a covered event causes damage or loss:

  • Contact Your Insurer Immediately: Provide detailed information and necessary 
  • Assessment: An adjuster will evaluate the damage or loss against the policy terms before approving the claim.
  • Keep an Inventory: Maintain an updated inventory of valuable items to expedite the claims process.documentation (e.g., police reports).

Best Villa Insurance Providers in Bali

Zurich Insurance Bali

Zurich Insurance leads in providing villa insurance in Bali. Understanding local risks, Zurich offers tailored solutions for villa owners. Their policies provide extensive protection against natural disasters. Zurich emphasizes flexibility, allowing policyholders to customize coverage based on specific needs.

Allianz Insurance Bali

Allianz is another key player in villa insurance. With global renown, Allianz brings high standards to Bali, offering comprehensive and adaptable policies. They cover common risks from natural calamities to theft and liability issues, ensuring prompt support when needed.


Cost of Villa Insurance in Bali

House insurance in Bali costs about 0.2% of the insured sum. For a property worth IDR 2.15 billion ($135,450), the premium is IDR 4.29 million ($270). Most policies do not cover volcanic eruptions automatically, but additional coverage options are available. Review your policy carefully or consult your insurer to ensure adequate coverage.


Get 1st Year of Insurance for Free

Investing in villa insurance in Bali is essential for protecting your property from natural disasters, theft, and other unforeseen events. Comprehensive coverage ensures peace of mind and financial security.

We collaborate with Zurich Insurance representatives in Bali to offer the best insurance solutions. We've also secured construction insurance from them for our development projects. As a special offer, all our clients receive free home insurance for the first year through Zurich, ensuring your investment is protected against potential damages and uncertainties.

Contact us for personalized advice and let us help you find the perfect insurance plan. Reach out via email at

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