According to General Insurance Association of Malaysia (PIAM), most Malaysians purchase the fire insurance only. However, this basic insurance has limited insurance coverage.
Therefore, PIAM is introducing 3 types of insurance, Fire Insurance, Houseowner Policy and Householder Policy.
1. Fire Insurance
Fire insurance covers your property against damages caused by fire, lightning and explosion caused by domestic gas. However, it can be extended to cover the following:
• Riots and strikes
• Aircraft damage and thereby falling objects ( damage caused)
• Impact damage (not inclusive the vehicle itself)
• Water tanks, apparatus and pipes burst and / or spills
• Earthquakes, volcanic eruptions, hurricanes, typhoons, tornadoes and storms
• Land subsidence and landslip
2. Houseowner Policy
Homeowners insurance policy is designed for protection against fire and loss or damage to buildings, except riots, strikes and malicious damage, land subsidence and landslides. However, owners are protected against damages caused by earthquakes and volcanoes.
In addition to that, the policy also covers theft, loss of rent due to damaged uninhibited building, injuries and damages done onto others. This policy can also be extended to cover losses due to riots, strikes and malicious damage, land subsidence and landslides.
3. Householder Policy
This insurance policy protects the tenant’s properties instead of the building. Such policy is extremely useful to people renting and occupying properties that don’t belong to them.
When you are about to purchase a house, remember to:
a) To ensure your property has full protection, consider upgrading and renovating your house.
b) Always disclose all necessary information on your insurance application form.
c) Read the policy carefully, have a clear understanding towards all terms and conditions.
d) Be a good paymaster, or your insurance might be cancelled.
The don’ts while purchasing an insurance:
a) Do not sign a blank insurance application form.
b) Do not over-or under- insurance your property.
c) Do not hide information required on the application form.
d) Do not purchase unnecessary insurance protection because you feel pressured to do so.