{"id":2764,"date":"2025-09-22T12:32:53","date_gmt":"2025-09-22T05:32:53","guid":{"rendered":"https:\/\/www.bsibroker.co.th\/?p=2764"},"modified":"2025-09-22T12:36:20","modified_gmt":"2025-09-22T05:36:20","slug":"condo-insurance-juristic-persons-guide","status":"publish","type":"post","link":"https:\/\/www.bsibroker.co.th\/en\/news\/condo-insurance-juristic-persons-guide\/","title":{"rendered":"As a Juristic Person what are your obligations to the owners to insure properties for their actual value rather than your estimated value?"},"content":{"rendered":"<p>As a Juristic Person, your obligation regarding insurance is not necessarily to insure individual units for their &#8220;actual value&#8221; (a term that can be ambiguous), but rather to fulfill your fiduciary duty by securing appropriate and prudent insurance for the<strong>\u00a0common property<\/strong>\u00a0of the condominium.<\/p>\n<p>Here is a breakdown of your legal and ethical obligations:<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-2772\" src=\"https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-01.jpg\" alt=\"condo-insurance-juristic-persons-guide-h2-01\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-01.jpg 1920w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-01-300x169.jpg 300w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-01-1024x576.jpg 1024w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-01-768x432.jpg 768w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-01-1536x864.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/p>\n<h2>1. Primary Obligation: Insure the Common Property, Not Individual Units<\/h2>\n<p>The core mandate of the Juristic Person is defined by the\u00a0<strong>Thai Condominium Act B.E. 2522 (1979)<\/strong>\u00a0and the specific regulations of the condominium&#8217;s by-laws.<\/p>\n<ul>\n<li aria-level=\"1\"><strong>What is Common Property?<\/strong>\u00a0This includes the main structure of the building (foundations, load-bearing walls, beams, roofs), common areas (lobby, hallways, elevators, swimming pool, gym), and common systems (main plumbing, electrical systems, central AC system for common areas).<\/li>\n<li aria-level=\"1\"><strong>Your Duty:<\/strong>\u00a0You are legally obligated to take out a\u00a0master insurance policy\u00a0that covers the common property against standard perils like fire, explosion, lightning, storm, flood, and other risks as defined in the policy.<\/li>\n<li aria-level=\"1\"><strong>The &#8220;Value&#8221; in Question:\u00a0<\/strong>The policy should cover the\u00a0full reinstatement or replacement cost\u00a0of the common property. This is the cost to rebuild the common areas from the ground up at current construction prices, including debris removal, architect fees, and permits. It is\u00a0not\u00a0the market value of the entire condominium (which includes land value) or the sum of the individual unit values.<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-2766\" src=\"https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-02.jpg\" alt=\"condo-insurance-juristic-persons-guide-h2-02\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-02.jpg 1920w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-02-300x169.jpg 300w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-02-1024x576.jpg 1024w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-02-768x432.jpg 768w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-02-1536x864.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/p>\n<h2>2. The Critical Distinction: Common Property vs. Unit Owner&#8217;s Property<\/h2>\n<p><span style=\"font-weight: 400;\">This is where confusion often arises. The Juristic Person&#8217;s policy typically stops at the\u00a0<\/span><b>original internal surfaces of the unit<\/b><span style=\"font-weight: 400;\">\u00a0(the &#8220;bare walls&#8221;).<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Juristic Person&#8217;s Policy Covers:<\/b><span style=\"font-weight: 400;\">\u00a0The building structure, common areas, and the original fixtures as built (e.g., the original bathroom tiles, the original kitchen sink provided by the developer).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unit Owner&#8217;s Responsibility Covers:<\/b><span style=\"font-weight: 400;\">\u00a0Everything inside that isn&#8217;t original, including:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">All personal belongings (furniture, electronics, clothing).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Interior renovations and improvements (wooden flooring, custom-built kitchens, upgraded bathrooms, wallpaper).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Their own civil liability (e.g., if their renovated bathroom floods and damages the unit below).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Therefore, your obligation is\u00a0<\/b><b><i>not<\/i><\/b><b>\u00a0to insure the owner&#8217;s personal property or improvements for their &#8220;actual value.&#8221; That is unequivocally the owner&#8217;s responsibility.<\/b><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-2768\" src=\"https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-03.jpg\" alt=\"condo-insurance-juristic-persons-guide-h2-03\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-03.jpg 1920w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-03-300x169.jpg 300w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-03-1024x576.jpg 1024w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-03-768x432.jpg 768w, https:\/\/www.bsibroker.co.th\/wp-content\/uploads\/2025\/09\/condo-insurance-juristic-persons-guide-h2-03-1536x864.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/p>\n<h2>3. Fiduciary Duty: To Act Prudently and in the Best Interest of All Co-Owners<\/h2>\n<p><span style=\"font-weight: 400;\">Your obligation is to exercise\u00a0<\/span><b>due care and diligence<\/b><span style=\"font-weight: 400;\">\u00a0in arranging the master policy. This means:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Adequate Sum Insured:<\/b><span style=\"font-weight: 400;\">\u00a0Ensuring the sum insured is adequate for the full reinstatement cost of the common property.\u00a0<\/span><b>Under-insuring is a severe breach of duty.<\/b><span style=\"font-weight: 400;\">\u00a0If a loss occurs and the insurance payout is insufficient, the Juristic Person (and ultimately all co-owners) could be liable for the shortfall through a special assessment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accurate Valuation:<\/b><span style=\"font-weight: 400;\">\u00a0It is considered best practice to periodically (e.g., every 2-3 years) obtain a professional valuation or have a quantity surveyor assess the rebuilding cost to ensure the sum insured remains accurate amidst inflation and changing construction costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Appropriate Coverage:<\/b><span style=\"font-weight: 400;\">\u00a0Selecting a policy with comprehensive coverage that is suitable for the specific risks faced by the condominium (e.g., including flood coverage if in a risk area).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Transparency:<\/b><span style=\"font-weight: 400;\">\u00a0Clearly and regularly communicating to all co-owners:<\/span>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">What the master policy covers (the common property).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">What it\u00a0<\/span><i><span style=\"font-weight: 400;\">does not<\/span><\/i><span style=\"font-weight: 400;\">\u00a0cover (their personal belongings, improvements, and liability).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The importance of them obtaining their own\u00a0<\/span><b>Condo Owner&#8217;s\/Householder&#8217;s insurance<\/b><span style=\"font-weight: 400;\">\u00a0policy to cover the gaps.<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ul>\n<h2>Summary of Obligations:<\/h2>\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 14px; text-align: left; border: 1px solid #ddd;\">\n<thead>\n<tr style=\"background-color: #f4f6f9; color: #333;\">\n<th style=\"padding: 12px; border: 1px solid #ddd;\">Obligation<\/th>\n<th style=\"padding: 12px; border: 1px solid #ddd;\">Description<\/th>\n<th style=\"padding: 12px; border: 1px solid #ddd;\">Why It&#8217;s Important<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background-color: #fff;\">\n<td style=\"padding: 12px; border: 1px solid #ddd; font-weight: bold;\">Legal Compliance<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Secure a master insurance policy for the common property as mandated by the Condominium Act and building by-laws.<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">To fulfill your legal mandate as the Juristic Person.<\/td>\n<\/tr>\n<tr style=\"background-color: #fafafa;\">\n<td style=\"padding: 12px; border: 1px solid #ddd; font-weight: bold;\">Fiduciary Duty<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Act prudently by ensuring the sum insured reflects the <b>current reinstatement cost<\/b> of the common property.<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">To avoid the severe financial risk of under-insurance for all co-owners.<\/td>\n<\/tr>\n<tr style=\"background-color: #fff;\">\n<td style=\"padding: 12px; border: 1px solid #ddd; font-weight: bold;\">Clear Communication<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">Educate owners on the limits of the master policy and their responsibility to insure their own unit&#8217;s contents, improvements, and liability.<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">To manage expectations and prevent disputes after a loss occurs.<\/td>\n<\/tr>\n<tr style=\"background-color: #fafafa;\">\n<td style=\"padding: 12px; border: 1px solid #ddd; font-weight: bold;\">Avoiding Overstepping<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\"><b>Not<\/b> to insure the individual units&#8217; contents or &#8220;actual value,&#8221; as this is the owner&#8217;s personal financial responsibility.<\/td>\n<td style=\"padding: 12px; border: 1px solid #ddd;\">To avoid misusing the condominium&#8217;s common funds for a purpose they are not intended for.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><b>In conclusion:<\/b><span style=\"font-weight: 400;\">\u00a0Your primary obligation is to be a prudent manager of the common <\/span><a href=\"https:\/\/www.bsibroker.co.th\/en\/home-and-property-insurance\/\"><span style=\"font-weight: 400;\">property insurance<\/span><\/a><span style=\"font-weight: 400;\">. You must insure the\u00a0<\/span><i><span style=\"font-weight: 400;\">common property<\/span><\/i><span style=\"font-weight: 400;\">\u00a0for its accurate\u00a0<\/span><i><span style=\"font-weight: 400;\">reinstatement value<\/span><\/i><span style=\"font-weight: 400;\">. You have\u00a0<\/span><b>no obligation<\/b><span style=\"font-weight: 400;\">\u00a0to insure an individual owner&#8217;s unit for its &#8220;actual value,&#8221; as this is a private matter for each owner to address. Your duty is to make this distinction clear and encourage owners to protect themselves accordingly.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a Juristic Person, your obligation regarding insurance is not necessarily to insure individual units for their &#8220;actual value&#8221; (a term that can be ambiguous), but rather to fulfill your fiduciary duty by securing appropriate and prudent insurance for the\u00a0common property\u00a0of the condominium. Here is a breakdown of your legal and ethical obligations: 1. Primary [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2764","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/posts\/2764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/comments?post=2764"}],"version-history":[{"count":5,"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/posts\/2764\/revisions"}],"predecessor-version":[{"id":2777,"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/posts\/2764\/revisions\/2777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/media\/2770"}],"wp:attachment":[{"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/media?parent=2764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/categories?post=2764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bsibroker.co.th\/en\/wp-json\/wp\/v2\/tags?post=2764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}