Comprehensive cover for the risks of residential buildings — detached houses, apartments, row houses and multi-unit dwellings — including fire, explosion, rupture, lightning, storm-flood and theft. Under the Act on Compensation for Fire-Caused Loss and Insurance Subscription (the Special Buildings Act), special buildings such as apartments of 16 storeys or more, general buildings of 11 storeys or more, and academies and multi-use facilities are in the compulsory area.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
Comprehensive cover for the risks of residential buildings — detached houses, apartments, row houses and multi-unit dwellings — including fire, explosion, rupture, lightning, storm-flood and theft. Under the Act on Compensation for Fire-Caused Loss and Insurance Subscription (the Special Buildings Act), special buildings such as apartments of 16 storeys or more, general buildings of 11 storeys or more, and academies and multi-use facilities are in the compulsory area.
Homes for own use or for rental.
Compulsory for the residents' council / management body.
Compulsory at 11 storeys+ or 3,000㎡+ total floor area.
Household goods and tenant fire liability can be combined.
| Special building (compulsory) | Building fire + bodily-injury cover compulsory; penalty for non-compliance |
|---|---|
| Ordinary home (voluntary) | Free design of building/contents; fire-property and recourse cover recommended |
| Storm-flood | Typhoon, flood, heavy rain, heavy snow, strong wind |
|---|---|
| Earthquake / eruption | Additional cover for magnitude 5.0+ |
| Theft | Burglary / robbery loss |
| Tenant fire liability | For tenants on a lease |
| Day-to-day liability | Third-party loss |
| Policy period | 1 year (long-term 3/5 years available) |
|---|---|
| Insurers | AIG · Chubb · DB · KB · Meritz · Hyundai (comparison quote) |
| Sum insured | Building replacement value / household goods |
| Turnaround | Same day – 2 business days |
| Legal basis | Act on Compensation for Fire-Caused Loss and Insurance Subscription (Special Buildings Act) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Five by residential type — protecting own property and neighbours
Owner-occupied detached houses. Building + contents combined is common; natural-disaster risk where adjacent to forest.
2–4-household dwellings. Spread-to-neighbour risk; per-unit cover or a management-body blanket policy.
Ordinary apartments outside the Fire Insurance Act's compulsory area. Per-unit own-property cover combined with the management body's policy.
The Fire Insurance Act compulsory area. The management body must insure, with a fine for non-compliance.
Separate from the owner's fire insurance. The tenant reviews the "tenant fire liability" wording in combination.
At a multi-unit dwelling, a fire believed to be from an electrical leak in one household caused loss to that household and two neighbouring ones. The owner of the originating household had own-property cover reviewed under this wording, and under the Act on Liability for Fire Caused by Negligence the liability to neighbours was limited on an ordinary-negligence assessment. Some neighbouring households handled their own property through their own fire insurance, and the unit with a tenant had its case reviewed in combination with the tenant fire liability wording. A case showing that, in the same accident, the cover boundary of each wording and the application of the Negligent Fire Act are the deciding factors.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
Where a building mixes residence and business (restaurant, karaoke and so on), the business part is a separate compulsory "multi-use establishment fire liability" area. This wording is limited to residential use, so without a combined design the business part is a cover gap.
The owner covers building and contents (own property) under this wording, and the tenant covers liability to the landlord and neighbours under "tenant fire liability". Confirming the lease's liability-allocation and matching it to each wording's cover area is key.
Under the Act on Liability for Fire Caused by Negligence, an ordinary-negligence fire has limited liability, but gross negligence or a fire spreading to neighbours brings a large burden. Combining a neighbour-harm endorsement beyond own-property cover is recommended.
The questions decision-makers ask most when considering residential fire insurance
Ordinary homes are voluntary, but under the Act on Compensation for Fire-Caused Loss and Insurance Subscription (the Fire Insurance Act), apartment buildings of 16 storeys or more, and special buildings such as hospitals and schools, are in the compulsory area. Multi-use establishments (restaurants, karaoke and so on) fall under a separate "multi-use establishment fire liability" area.
Fire, explosion and lightning loss to the home building and household goods is the base cover. Endorsements can add storm-flood (typhoon, flood), theft, family day-to-day liability, and compensation for harm to neighbouring units or neighbours from a fire.
An ordinary residential home is this wording's area, while restaurants, karaoke and internet cafés are a separate compulsory "multi-use establishment fire liability" area. Where a building mixes residence and business, the two wordings need to be designed in combination.
The owner covers their own property through the building's fire insurance, and the tenant covers liability to the landlord and neighbours through "tenant fire liability". The two areas are separate, so confirm the lease's liability-allocation in advance and choose the wording accordingly.
Under the Act on Liability for Fire Caused by Negligence, liability for a fire by ordinary negligence is limited. But for gross negligence or where a fire spreads to neighbours, the liability scope can widen, so combining a neighbouring-harm endorsement is recommended.
Under the Fire Insurance Act, the management body of an apartment building of 16 storeys or more must hold fire insurance, with a fine for non-compliance. A compulsory limit + excess-limit endorsement is commonly combined to supplement single-accident loss.
The insurer assesses it on the building structure (concrete, timber, steel), area, building value, household-goods value, fire-risk grade (including the surrounding environment) and firefighting facilities. The exact premium and whether cover can be accepted are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
