Risk Prevention for Expats Investing in Property in Bali

May 9, 2025

Investing in property in Bali offers incredible opportunities -- but it also carries unique risks that many expats underestimate. Beyond legal and tax considerations, safeguarding your investment through proper risk prevention is essential. 

At SAS, we take a 360-degree approach to property investment in Bali—from legal structuring and tax optimisation to introducing you to trusted partners like Be Protected Indonesia, specialists in insurance and risk management for expat property owners. 

Fire Prevention: Simple Measures with Serious Consequences

Fire is one of the most common – and most preventable – causes of property damage in Bali. What many property owners don’t realise is that insurance claims may be denied if basic fire prevention steps are not in place. 

What to do: 

  • Install serviced fire extinguishers in key areas 
  • Avoid using candles or incense near curtains or furniture 
  • Schedule regular inspections of electrical systems 

Flooding Risks: Not Just for Riverside Properties

Flooding is not limited to riverside or low-lying properties. Heavy rain, poor drainage, rising groundwater, and nearby construction can all contribute to water damage – especially during Bali’s rainy season. 

How to reduce flood risk: 

  • Check if your property is in a flood-prone zone 
  • Improve drainage systems where needed 
  • Store electronics and valuables off the floor 

Earthquake Coverage: Don’t Assume It’s Included

Located in an active seismic zone, Bali is prone to earthquakes. Yet, earthquake coverage is not always included in standard insurance policies. If it is not clearly stated, it is likely not covered. 

Key considerations: 

  • Is earthquake protection explicitly included? 
  • Is your villa’s structure built with seismic resistance in mind? 
  • What is your deductible in case of earthquake-related damage? 

Public Liability: What If a Guest Gets Injured?

Whether you're renting out your villa or hosting friends, public liability insurance is crucial. Injuries around pools, stairs, or slippery surfaces can lead to expensive legal claims — especially if your property is registered as a business. 

Tips for protecting yourself and your guests: 

  • Ensure your policy includes public liability 
  • Keep the property well-maintained 
  • Add clear signage in potentially risky areas (e.g., wet floors, pools) 

How SAS Helps You Protect Your Investment

At SAS, we believe risk prevention is just as critical as choosing the right legal structure or optimizing your taxes. That’s why we’ve partnered with Be Protected Indonesia—a leading insurance consultant for expat property owners. 

BPI doesn’t just issue policies — they work closely with each client to ensure that prevention requirements match the insurer’s terms, avoiding unpleasant surprises during the claims process. For example, a missing or expired fire extinguisher may be grounds for claim rejection — even if you’re insured. 

Ready to Invest Safely in Bali?

If you're buying land, building a villa, or managing property in Bali, let’s talk about how to keep it safe, compliant, and fully protected — not just beautiful.

  Visit Be Protected Indonesia to explore insurance option.

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