SPEEDProtect: Don’t forget to insure the biggest asset in your life!

According to some of the industry experts, Malaysian don’t know much about home insurance.

On the topic of property, did you know the majority of Malaysian spend up to 30 to 40% of their monthly salary on housing installment?

That is a large commitment! Home appliances, furniture, and decorations are not cheap and it definitely adds up quickly.

After spending so much, it only makes sense to protect and make it last, right?

Tear and small fixes are fine. However unforeseen accidents such as fire, floods or burglary are definite devastation to your investment.

As a point of view of a property investor, these little things matter. Especially jumping the gun and by chance unluckily lands on bad tenants from hell.

If only there is a home insurance protection that covers your rental losses.
Oh wait, there is.

So what is home insurance?

In simple words, according to Investopedia Homeowners Insurance is a form of property insurance that covers losses and damages of the house and its assets in the house.

Homeowners insurance also provides liability coverage against accidents in the home or on the property. 

In brief liability coverage is for say, your neighbor accidentally slip and fall. Then sues you for the damages done of them. Liability will cover the costs around it. But of course, it depends on the policy.

In Malaysia, the main types of home insurance policies that you should know:

1. The Basic Fire policy – This covers your property against loss or damages that are caused by either fire, lightning or explosion.

2. The Houseowner policy – like the Basic Fire policy, it covers the same damages with the addition of water-related damage like floods and burst pipes.

Experts’ thoughts on Home Insurance?

Overlapping Purchase

REHDA President Y.Bhg. Dato’ IR Soam Heng Choon said: “House owners should look out for overlapping purchase of insurance by house owners during the confirmation of end-financing with the bank or financial institution, and purchase of insurance policy by Joint Management Body (JMB). It is important that house buyers and house owners understand the different types of insurance that is available out there for loss or damage due to flood, burst pipes, fire incidents, lightning, explosion, and even theft and to be able to secure sufficient coverage with one policy in place.”

After the housing, loan payment forget to insure your house

 Horst Habbig, Chief Sales Officer of Allianz General Insurance Company (Malaysia) Berhad, said, “Most Malaysians are still in the dark about house insurance. We are so used to things being done for us. So when we finish paying off our housing loan, we tend to ignore the fact that our house – our most prized possession- is not protected. Accidents happen, fire is a huge threat, and natural calamities like thunderstorms, floods, and landslides do not discriminate. Are we not afraid? Or are we too busy to do anything about it?” 

Even though getting an insurance premium naturally sounds like the way to go. But it’s not as easy. There’s so much to protect, specific policy premiums can be expensive.

Reduce your Premium Policy Amount

  1. Avoid including all home contents in the policy

    While you may value your old items —furniture or electronics —the insurer will only consider the depreciated cost of the item. Including old home, contents will cause your premium to be high when you take the policy. But, the pay-out during claim settlement will lower

  2. Avoid additional cover options

    They may not always be useful and only add to the overall insurance cost.

  3. Home security and safety equipment investment can do wonders for your risk rating.

    Do your bit to secure your home as much as possible with burglar alarm systems, fire detection systems, smoke detectors, fire alarms, and security cameras among others. This way, your property will be considered a lower risk one because of which your insurance premium will be lesser.

With that said, make sure that you shop around when you need to buy home insurance in Malaysia. There are plenty of comparison platforms that you can find online where you can get information about multiple policies and see which one suits your individual needs.

Remember that you can also customize your policy according to your needs and budget. So, be sure to do enough research before settling for one.

Keep your eyes appealed for the next SPEED Protect article! We will discuss the latest product in Malaysia Market! Insurance that protects your property and helps you rent out our tenant within days! 

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