Everything You Need to Know about Home Insurance


When it comes to securing your home, home insurance tends to be the first thing that comes to mind. In Malaysia, homeowners are provided with a wide range of home insurance premiums to protect their property. Whether you’re living in a landed residential home or a luxurious condominium, various premiums are designed to offer the necessary protection against natural disasters, theft, fire and so forth. If you’re applying for a housing loan to finance the purchase of your new home, home insurance is required. Therefore, understanding the fine details and basic coverage is important before selecting your chosen premium. Here’s the breakdown of home insurance that you need to know.

The differences between a house owner and householder insurance

In Malaysia, there are three main categories of home insurance policies. There are basic fire, house owner and householder policies. Let us help you to distinguish the difference between the two popular policies, house owner and householder.

House owner insurance

If you’re the owner of a residential home, flat, apartment or condominium, protecting your home with a house owner insurance is the best way forward. Aside from covering most of the list under the basic fire policy, house owner insurance also extends to damages caused by selected natural disasters such as lightning, flood, explosion and more. Bear in mind that certain house owner insurance doesn’t cover certain forms of natural disasters in the likes of riot strike, bushfire, subsidence and landslide. Generally, the house owner insurance also covers theft by forced entry.

Householder insurance

If you’re a tenant of a residential home, flat, apartment or condominium, it’s best to secure your home with a householder insurance. Generally, the landlord would have secured your temporary home with a house owner insurance. However, this policy does not protect the content and belongings of your home such as valuable paintings and antiques. For householder insurance, you need to determine your chosen compensation: reinstatement or replacement value. Then, you’re required to declare each item under this policy to receive full compensation when damages or theft occurred.

The benefits of owning a home insurance


Similar to most insurance, home insurance prepares you for the unfortunate turn of events that can potentially damage your home. The yearly commitment of a home insurance premium may add weight to your finances but always remember its long-term benefit.

There are several ways that your home can be exposed to unfortunate events. For instance, late-night fires caused by a faulty electrical source, landslides along steep slopes and floods from the monsoon. Without warning, these fires and natural disasters can ruin your home or damage your belongings. Before you know it, you’re slapped with a massive bill to recover your losses. That is why securing your home with insurance is essential.

Home insurance also comes with several optional benefits. It can protect lost jewellery, belongings of a domestic worker, uncollected rent, removal of property and more.

The average costs of home insurance in Malaysia

According to the Malaysia Fire Insurance Tariff, it states that ‘no insurance may be granted or renewed for a premium less than RM60.00’. Therefore, the minimal annual cost of home insurance begins from the stated amount.

There are other factors that contributed to the additional charges such as the type of residential property (landed, apartment or flat), construction classification and a 15%-25% commission to the insurance agent.


Final thoughts

For most of us, purchasing a new home is a huge life investment. Therefore, it’s also important that we secure our home with the necessary security and protection it needs. In Malaysia, there are various insurance policies available for homeowners. Each of these policies served their part in protecting your home from fire, theft and natural disasters. It’s also crucial to ask your insurance agent on the level of coverage and compensation because some policies do not cover damages caused by hurricane or typhoon, for instance.

ZURICH, Allianz, MSIG and AIA are one of the main insurance companies that provide comprehensive home insurance coverage. Even better, there are also dual policies that cover both house owners and householders. With that in mind, you can live in your home or leave for a vacation with a great peace of mind.

This article was previously published on Qompanion.my in Feb 2018. 


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s