They say that “Your home is your castle”, and beyond that, your home is where you invest your hopes and dreams for the future. Your home is also where most of your money is invested as well, with the luxurious living room setting you have always wanted and the gorgeous garden landscape only adding to the cost.
With so much of your savings being used to buy your dream home, it only makes sense that you do everything you can to protect it. Accidents or damage to your home can happen to anyone, and burglaries are all to common these days too.
Therefore, getting a home insurance policy to protect your home and its contents will not only ensure peace of mind but could save you financially in the long term.
Understanding Home Insurance
Otherwise known as houseowner and householder insurance, home insurance is a type of property insurance that protects your home and its contents against loss or damage.
In Malaysia, there are three main types of home insurance policies that you can buy to protect your home:
- The basic fire policy that covers your property against loss or damage due to fire, lightning or explosion;
- The householder policy that covers household contents and includes coverage for personal belongings, furniture, electronic equipment, but does not cover damage to the house itself; and
- The houseowner policy that covers your property against loss or damage due to fire, lightning or explosion as well as floods and burst pipes.
“Just like why you would insure your life and your car, a home insurance policy protects your financial interest in the event that anything goes wrong,” Allianz General Insurance Company (Malaysia) Bhd Head of Personal Business Kevin Lim tells Smart Investor.
Of course, as home insurance is not compulsory by law once you have paid off your mortgage, you have the option of dropping the insurance policy if you want to, although Lim cautions against it.
“This is a complex financial decision not to be taken lightly, and not having home insurance is certainly not a smart thing to do,” he points out. “After all, your home is a costly investment, so why wouldn’t you want to protect it should anything unexpected happens?”
Protecting Your Home with Allianz
A house is a private haven to some, and a valuable source of rental income to others. With that in mind, Allianz offers a comprehensive selection of home insurance policies comprising Smart Home Cover, HouseOwner and HouseHolder Insurance, Allianz KampungKu and Homeguard.
Modular in nature, Smart Home Cover, explains Lim, is a new kind of home insurance that offers flexibility in that customers can tailor-make their own home insurance according to their needs and/or wants.
“This new insurance scheme can cover the building (HouseOwner), content (HouseHolder), mortgage (Mortgage Loan Instalment Protection), fixing and maintenance (HomeFix) and, in the event of tenant runaway or damage caused by tenant, Landlord Insurance which also covers the legal fees for letter of demand,” explains Lim.
“I’m proud to say that Allianz is the first insurance company to come up with this sort of flexible product,” he further reveals.
“What truly sets us apart from other products in the market is the fact that we have an Agreed Value system, or in other words the amount agreed upon by Allianz and the policyholder for the property insured.”
The agreed value is calculated based on the policyholder’s housing area (postcode) and the type of house he/she has. In the event of a claim, the amount would be paid out based on Allianz’s Agreed Value system, alongside discounts on their home insurance premium.
In addition to Smart Home Cover, Allianz’s home insurance also comes in the form of the Allianz KampungKu, a product under the Perlindungan Tenang initiative, which makes it affordable for customers living in rural areas, and Homeguard, a comprehensive product designed specifically for the contents of your home.
The HouseOwner/HouseHolder Insurance, meanwhile, cover one’s house and its contents against losses and/or damage by the insured perils.
Simply put, HouseOwner covers the residential building (house/apartment including fixtures, fittings, garages, walls, gates and fences surrounding the house), while HouseHolder covers household contents and personal effects.
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