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Published in Business Today on 4 August 2022
Home is where the heart is and for most, a home is where one can find comfort and solace. That said, doesn’t it make perfect sense to safeguard and protect one’s most precious asset – their home? With a proper insurance plan in place, precious valuables and priceless belongings in the house can be safeguarded from any untoward incidents. Victims of
such unfortunate circumstances would also not be left in a financial lurch as repair cost mounts.
In a tropical country like Malaysia, getting a proper house insurance coverage is pivotal. If anything, a lesson should be learnt from the most recent flooding that wreaked havoc on thousands of houses in Selangor where many have lost their homes. Based on reports, thousands of flood victims with an estimated damage cost of at least RM20 billion were left with huge repair bills and no means of paying for it.
Yet, there are many Malaysians that are deeply underinsured and uninsured for weather-related perils, especially the B40 groups who see insurance as a luxury rather than a necessity.
Based on the Department of Statistics Malaysia (DoSM), Malaysia reported a loss of about RM6.1 billion due to floods in 2021. Meanwhile, the Selangor Fire and Rescue Department dealt with 8,814 fires involving buildings and properties in the state in 2021. In the same period, some RM347.7 million in losses to fire were recorded, increasing from RM297.9 million losses in 2020. The most common causes of fire breakouts in residential houses include cooking or boiling water left unattended, leaking gas regulators and hoses, short circuits due to electrical wiring and the use of uncertified electrical equipment.
“With these rampant natural disasters hitting thousands nationwide annually, it is about time this mindset about the importance of insurance be changed. It is our hope at Liberty Insurance that all homeowners be educated about the importance of home insurance and what to look out for in terms of coverage. That way, more homeowners and their homes can be thoroughly protected and covered by insurance if and when natural disaster strikes or an untoward incident occurs like theft for instance,” said Liberty Insurance Berhad Commercial Lines Head, Foo Yong Chiat.
Houseowner or Householder Insurance Policy?
For most insurance packages, there are two aspects to a home insurance plan to look into – the Houseowner plan and the Householder plan. What is the difference? Simply put, the houseowner policy usually covers the house structure that includes walls, ceiling, roof, fixtures and others. Meanwhile, the householder policy covers the content in the house like furniture and so on. Both the insurance policies are equally important and with both policies in hand, home owners can rest easy knowing that their most precious belongings are safeguarded at all times.
Other things to look into for a holistic home insurance plan include coverage for natural instances such as disaster relief including fire, lightning, windstorm, earthquake and floods. These are important key factors to note, especially where fire, lightning and floods are concerned in Malaysia. Another thing to look out for is if the coverage includes sudden impact situations where your house may be damaged by road vehicles, animals or domestic gas explosions.
If the home is being rented out, there are also plans that cover rental loss, theft and even damages caused by overflowing water tanks or burst water pipes. If this basic coverage is not sufficient, then be sure to look out for add-ons to the policy that covers landslip especially for houses on a hill for example.
While the exterior of the house is well covered and protected, the insides must be equally protected too. Precious belongings like furniture, electrical appliances, kitchen equipment, clothing, personal effects and valuables should be well covered by a proper insurance plan. Other items like cash, jewellery, damage to lock and keys should also be included into the insurance plan.
To get all the above and more, Liberty Insurance offers both the home insurance plans that are holistic and comprehensive. Its Householder and Houseowner Insurance Policies cover all aspects and come with various add-ons to suit every home owner’s needs. If you are still unsure about how to choose an insurance package that encompasses all aspects, the knowledgeable Liberty Insurance agents are always on hand to guide a homeowner through the whole process and which plan suits them best.
