Your house is probably your biggest asset and you should insure it against fire, storm and flood etc. Understand the different types of fire insurance so that you can make the right decision when buy a fire insurance.
There are basically 2 types of Fire Insurance, a basic fire and a houseowner insurance. A basic fire insurance, as the name suggest merely provide covers against fire, lightning and domestic explosion. It is very cheap as it only protect against 3 perils mentioned (Fire, Lightning and Domestic Explosion).
The second type of fire insurance provides a more complete cover, known as Houseowner Policy. It is a actually a bundle policy where various standard perils are added onto the basic fire insurance, and as it is bundled with these common perils, the premium is relatively cheaper compared to specially adding each perils onto a basic fire policy.
As a more comprehensive fire insurance, a Houseowner Policy will provide followings cover:
3. Domestic Explosion
5. Hurricane, cyclone, typhoon, windstorm
6. Earthquake and Volcano eruption
7. Aircraft Damage
8. Impact Damage
9. Bursting or overflowing of water tanks apparatus or pipes
10. Theft but only if accompanied by actual forcible and violent breaking
11. Third Party Liability and more..
While the premium for a Householder Insurance will be higher than a basic fire insurance, but in view of the wider coverage it offers, it is advisable to opt for a houseowner insurance to a basic fire insurance. Thus, understanding the differences between a basic fire insurance and a houseowner insurance should help you in making a better purchase decision.
Building vs Content
When purchasing for a fire insurance, you can insured for the building and/or contents. The building refers to the physical structure of the building, while as content refers to the items/movable contents inside your building/house.
So, after determining if you need a basic fire insurance or a houseowner insurance, you now decide on the coverage for the building and or contents. If you live in a strata title property, such as a condo/apartment, your JMB will purchase a Master Fire Insurance Policy to protect the actual physical building/structure. What is not cover in the Master Fire Insurance is the content of your home. Thus, you will need to purchase a separate fire insurance for your house content.
If you are opting for the basic fire insurance, then you have to determine the sum insured you wish to cover for your content. If you are opting for a more comprehensive cover, it will be refer as a Householder insurance (Houseowner refer to cover for building and Householder refer to cover for content). Thus, it is commonly refer to as a HOHH insurance.
Insurance Coverage Amount
When determining how much you should insured for your building/property, the sum insured amount should be based on the estimated cost of re-building and NOT on Market Value. This is because the market value of your property is inclusive of land cost, while as a fire may completely burnt down your property, but your land will remain.
If you are not sure of the re-building cost, you may use a cost-rebuilding Calculator provided by PIAM (The Malaysia General Insurance Association) which you can refer to this link. (bcc.piam.org.my)
Get Insurance Quote now
If you understand the need for a fire insurance and wish to receive a quotation. Kindly contact us so that we can assist you to generate an official quote from Allianz General Insurance. Likewise, if you are more comfortable and wish to renew online directly, you may get instant quote by clicking here [Renew Fire Insurance Online]