Only 0.1% of Indonesian homes are insured.
Around 36,000 out of 64 million. In a country ranked second in the world for disaster risk, above the 193 others assessed.
The numbers behind that gap
Through 2024, BPS recorded more than 1,400 flood events with potential economic losses above Rp500 trillion. Risk from extreme weather and forest fires is estimated at Rp700–800 trillion. In recent memory alone, flash flooding in Bali and major floods across Greater Jakarta have inundated thousands of homes.
Indonesia sits where four tectonic plates meet — Indo-Australian, Eurasian, Pacific and Philippine. Earthquakes, eruptions and floods are not distant possibilities here. They are part of ordinary planning.
What to check before buying
Basic policies often exclude flood and earthquake
This is the most expensive misunderstanding in Indonesian property insurance. A standard fire policy typically covers fire, lightning, explosion, aircraft impact and smoke. Flood, earthquake, landslide, windstorm and riot are generally extensions that must be requested and paid for separately.
For most of Indonesia, those extensions are the entire reason to insure. Check your policy now, not after the water is inside.
The sum insured is rebuild cost, not market value
The relevant figure is what it would cost to rebuild your structure, excluding land value. A house worth Rp3 billion in a prime location might cost only Rp900 million to rebuild, and insuring it for Rp3 billion means paying premium for a benefit that will never be paid.
Underinsurance and average
If a building is insured below its true value, partial claims are generally settled proportionally. Insured at half its value, a claim may be paid at half the loss — even when that loss is well under the sum insured.
What follows is a summary written for general understanding. The benefits, annual limits, waiting periods and exclusions that actually bind are those in the Policy and the official illustration issued by Allianz, and cover is always subject to underwriting.
What is available
| Type | Who it suits | Typical scope |
|---|---|---|
| Home insurance | Homeowners and occupiers | Building, contents, and extensions for flood, earthquake and theft with forced entry. |
| Property All Risk | Owners of shophouses, offices, warehouses, factories | Broad cover for business assets, flood and earthquake extensions, and protection against income lost while operations are halted. |
| Allianz UsahaKu | SMEs and smaller businesses | Combined package covering property, legal liability, cash in safe, loss of customers' goods, plus flood, storm and windstorm. |
Documents usually needed at claim time
- Claim report form and a copy of the policy
- Photographs of the damage, taken before any cleaning or repair begins
- An itemised loss schedule with proof of ownership for damaged items
- Police report, or a letter from the village or sub-district head confirming the event
- Repair cost estimate from a contractor
The thing most often missed: photograph and film the damage before clearing anything away. Once debris is tidied, proving the scale of loss becomes far harder, and that routinely slows or shrinks the settlement.
Check whether your flood extension is active
The check is free and only needs a copy of your policy. It applies to policies from other insurers too.