Choosing the right Bali villa insurance is key to protecting your property

Buying a villa in Bali is an exciting journey. But it comes with its share of responsibilities. Theft, fire, flooding, tenant damage — these are risks that can quickly turn a profitable investment into a source of stress.

Surprisingly, many foreign owners overlook the question of Bali villa insurance, either because they don’t know what’s available, or they assume they don’t need it.

This article will walk you through the essential insurance types, common pitfalls, and how to make the right decision when it comes to protecting your Bali property.

1. Is insurance mandatory for a villa in Bali?

No, Bali villa insurance is not legally required. However, it is strongly recommended if:

• You rent out your villa short-term

• You’ve invested significantly in the interior design and furnishings

• You’re not living on-site full-time

• You employ staff (housekeepers, gardeners, security)

💡 The right insurance policy offers peace of mind — even when you’re thousands of kilometers away.

👉 Also read: Villa in Bali: Why Security Should Be a Top Priority

2. The 3 types of insurance every villa owner in Bali should consider

a) Home and contents insurance

This is your basic coverage. It typically protects against:

• Fires

• Flooding

• Theft

• Electrical damage

• Storms or earthquakes

Make sure it covers both the building and its contents (furniture, appliances, electronics, etc.).

b) Public liability insurance

This is crucial if you’re renting the villa. It covers damages or injuries sustained by guests, neighbors, or third parties.

👉 Related: How Gravity Bali Efficiently Manages the Challenges of Seasonal Rentals

c) Staff insurance

If you employ staff like cleaners or gardeners, you may be legally liable in the event of an accident. Some policies include optional coverage for domestic staff.

3. Limitations of local insurance companies

Many local Indonesian insurers (e.g., Jasindo, Simas, Adira) offer affordable policies, but:

• They are often written only in Bahasa Indonesia

• Coverage limits tend to be low

• Exclusions are common (especially for villas built with natural materials)

• Customer service may be difficult if you’re not fluent

👉 External resource: OJK Indonesia – Insurance Regulations

4. Why many expats prefer international insurance providers

Many foreign investors choose expat-friendly international insurers like AXA Expat, April International, or Global Underwriters.

Benefits include:

• Documentation and support in English or French

• Higher coverage ceilings

• Broader protection (including natural disasters and vandalism)

• Easier claims handling from abroad

📌 While premiums are higher, the long-term security is worth the extra cost.

5. Key things to check before signing any policy

Before committing to a Bali villa insurance contract, be sure to review:

• ✅ Total coverage (building + furniture)

• ✅ Liability limits

• ✅ Deductible amounts

• ✅ Short-term rental coverage

• ✅ Emergency assistance in English

• ✅ Online account access and remote management options

👉 Related article: Property Management: What Does Gravity Bali Actually Do on a Daily Basis?

6. A real case: Under-insured and left with the bill

A villa owner invested USD 350,000 in a modern home in Canggu. They took out a basic local fire insurance policy. When heavy rains flooded the villa and damaged furniture and electrical systems, the claim was denied.

Outcome: a USD 14,000 loss — and weeks of renovation before the villa could be rented again.

💡 A well-chosen insurance policy is a smart part of your long-term property strategy.

Conclusion: Yes to Bali property — but make sure it’s protected

Purchasing a villa in Bali can be a smart lifestyle and financial decision. But without the right insurance, your investment could be at risk.

At Gravity Bali, we help owners select insurance plans that suit their property type, rental model, and risk tolerance — thanks to our local and international partners.