Why Fire & Home Insurance is Essential

Think your home is safe? Think again. Imagine returning from a well-deserved vacation, only to find your home reduced to ashes after a fire. Your cherished memories, belongings, and sense of security—gone in an instant. Or perhaps, during the rainy season, a sudden flood invades your home, leaving furniture floating and valuables destroyed. Worse yet, a landslide could swallow your home completely, leaving you with cracked walls, a collapsed roof, and injured family members. In such devastating situations, would you have the financial resources to cover temporary shelter, home repairs, or medical expenses for your loved ones? This is why fire and home insurance are essential. Many people assume fire insurance only covers fire-related incidents, but did you know it also includes protection against lightning, floods, landslides, and other perils? However, it’s crucial to understand the specifics of your coverage to avoid surprises when filing a claim.

Understanding Your Home Insurance Needs

Your insurance requirements depend on the type of home you live in:

• Landed Property (Bungalow, Terrace, Semi-Detached House):
  If your home is built with full brick (solid brick, cement, and concrete floors), it is typically eligible for insurance. However, partial brick homes (built with a mix of brick, wood, glass, or other materials) are often considered higher risk and may not be covered. Always insure the rebuilding cost, not the market value, to ensure adequate protection.
  
• High-Rise Property (Condominium, Apartment, Flat):
  In many cases, the Joint Management Body (JMB) provides fire insurance for the building, but this does not cover your personal belongings inside your home. It is advisable to get content insurance to protect valuables such as furniture and electronics. Additionally, reviewing your family insurance plan ensures you are covered for any medical expenses arising from an emergency.

How Much Should You Insure Your Home For?

To determine the right coverage amount, you can use the calculator provided by PIAM (Persatuan Insurans Am Malaysia). This helps you estimate the rebuilding cost of your home and ensure sufficient coverage.

What Should Fire & Home Insurance Include?

A comprehensive fire and home insurance policy should provide:

• Funds to rebuild your home in the event of severe damage
• Coverage for furniture and household items so you can replace them if lost
• Financial support for temporary relocation if your home becomes uninhabitable
• Medical expense coverage for injuries sustained due to a disaster

Protecting your home means protecting your future. Ensure you have the right coverage before disaster strikes.

Reference:
https://www.aia.com.my/en/knowledge-hub/protect-well/importance-of-fire-and-home-insurance.html