There are three Â types of insurance which you can buy to protect your house.
- Fire Dwelling Insurance policy is the basic protection for your home. Â It only covers your house building only against the loss and damage due to fire, lightning and explosion.
- Houseowner insurance policy provides additional coverage compare to the basic fire dwelling policy as it includes loss or damage due to floods, earthquake, storm and tempest, landslip and subsidence, bursting of water pipes and apparatus, riots, strikes and malicious damage, impact, aircraft damage and etc. There are also other benefits which some insurance companies may include in package such as rent allowance for temporary accommodation when fire damaged the house and rendered it unsafe to stay pending repair and restoration of the loss and damage. Other extension like windows and plate glass panel breakage are optional cover that can be added with payment of additional premium.
- Householder insurance policy is the coverage for your household contents such as the furniture, fixture and fittings like built-in wardrobe and beds, bed-sheets and mattresses, blankets and pillows, living and dining tables and chairs, kitchen cabinets and cupboards,kitchen utensils and cutlery, curtains, home electrical appliances like refrigerator, washing machine, microwave oven, kitchen hop and air-ventilators, air-conditioners,fans, television, DVD players and music Hi-Fi and home theatre Â system, Â personal computers like desktop, notebooks and printers and its accessories, cameras, and video camcorder, musical instruments like organ and piano, books, cash money, Â jewellery and valuables and personal effects. Â Apart from the Fire, Lightning and Other Optional Perils, this policy also covers burglary and robbery of the contents. Â It also included fatal injury to the insured in a fire or a crime like armed robbery.
Therefore, an owner of a house can choose to insure his/her house building under Fire Dwelling Insurance Policy(Type 1) or Houseowner Insurance Policy(Type 2). Â He/She may also insure Householder Insurance Policy (Type 3) if he/she stay in the house and furnished it completely and choose to protect her contents too.
On the other hand, the person who does not own a house can still insure his/her contents as there are monetary value in the items he/she bought to furnish the rented house or the house they lived in belong to another person such as family siblings or parents.
There are exclusions in all three Â types of policy such as intentional arson committed by the insured and the house has been used for illegal activities and/or the local authority has declared the structure illegal and to demolish it or ordered for the destruction of the property by fire and tear down without compensation due to some health hazards.
Insured are advised to also check the value of the house and assets to be insured to avoid under-insurance and avoid dispute which can cause delays and hassles in the processing of claims settlement. Note that almost all insurers will only pay Â one third of the value of loss of gold and jewellery items insured.
Customer is advised to read the terms and conditions of each type of insurance policy before they decide the coverage most suitable for their needs.
Fire Insurance Section of Â Fire Dwelling, Houseowner and Householder Insurance PoliciesÂ in MalaysiaÂ are TariffÂ rated.
For high rise buildings like Residential Flats, Apartments and Condominiums, the individual owners will be insured through a one Strata Risks Fire Insurance Policy arranged by their Joint Management Board(JMB) or Joint Management Committee(JMC) through their appointed Property Management to facilitate the issuance of individual certificates to each of them and collection of premiums.
As soon as the registration of individual strata titles are completed the JMB will be replaced by the Management Corporation(MC). Â Most of the high rise buildings in Kuala Lumpur, Johor Baru and Penang are not subject to Malaysia Fire Tariff Rate as soon as the valuation of the whole block of Â high rise building exceed the RM10,000,000 sum insured which is self-rated.
Self-rated means the insurance company can adjust the fire insurance rating after successful negotiation with the JMC/JMB/MC for coverage of Fire Section and other perils. Â There are compulsory perils that the Fire Section must include for high rise building such as Earthquake, Landslip and Subsidence, Explosion, Bursting of Water Pipes, Water Tanks and apparatus and Riot Strike and Malicious Damage as governed by the local housing regulations.
Other Insurance policies that are usually purchased together with Fire Insurance for High Rise buildings are Public Liability Insurance and Directors and Officer’s Insurance. Â Some property management will require some coverage on burglary and robber and money insurance policies for the common property assets risks.
Other clauses such as the Escalation Clause , Mortgagee Clause and Premium Warranty are important terms to be included. Â We shall share with you further on these matters in other pages.
We offers free quotation and review of your existing basic Fire Dwelling Insurance policy or Houseowner Insurance Policy or Householder Insurance Policy. Your choice general insurance agent in Penang, Malaysia. Please contact us.