Home Takaful protects your home against losses or damage caused by unforeseen dangers. You have a choice to purchase either a houseowners takaful or a householder takaful, or for complete coverage, purchase both.
 
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  When you protect your house under the houseowners/householders takaful plan, you will undertake a contract (aqad) to become one of the participants by agreeing to mutually help each other, should any of the participants in the plan suffer a loss or damage to their property and/or its contents. The participative contribution (tabarru’) in a general takaful fund will be used for this purpose.

If you have not made a claim at the plan’s maturity date, you are entitled to a share of the surplus in the general takaful fund, which is shared between you and the takaful operator according to a pre-agreed ratio.

An example of how surplus sharing works is shown below:

Example: A takaful operator has a total surplus (S) of RM4 million and total general contribution (GC) of RM10 million. Your contribution (C) for the year is RM1,000. The pre-agreed sharing ratio (PSR) for the surplus is 50:50. Your share of the surplus will be as follows:
 
     
   
     
 
     
  The coverage provided under the respective takaful plans are as follows:  
     
 
COVER TYPES
Houseowner Householder Houseowner & Householder
   Section 1: Buildings
   This section covers loss or damage to the building by any of the following perils:
Fire, lightning, thunderbolt, subterranean fire, explosion, aircraft damage, impact damage by road vehicles or animals
Yes No Yes
Bursting or overflowing of water tanks, apparatus or pipes **
Yes No Yes
Theft by forcible or violent entry or exit
Yes No Yes
Hurricane, cyclone, typhoon, earthquake or volcanic eruption, flood ***
Yes No Yes
  Section 2: Contents ****
  This section generally covers loss or damage caused by any of the perils stated in Section 1 to the contents, including your household goods and personal effects, belonging to you, your family members or domestic servants.
Fire, lightning, thunderbolt, subterranean fire, explosion, aircraft damage, impact damage by road vehicles or animals
No Yes Yes
Bursting or overflowing of water tanks, apparatus or pipes
No Yes Yes
Theft by forcible or violent entry or exit
No Yes Yes
Hurricane, cyclone, typhoon or hurricane, earthquake or volcanic eruption, flood
No Yes Yes
  Section 3: Other contingencies
Loss of rent
Yes Yes Yes
Liability to third parties for accidents in your property
Yes Yes Yes
Subsidence and landslip
No No No
Riot, strike or malicious damage
No No No
 
     
 
* These exclusions can be covered under your plan with payment of additional premiums.
** The takaful operator will not be liable for the first RM50.
*** The takaful operator will not be liable for the first 1% of the sum covered or RM200, whichever is lower.
**** This section also pay compensation for your death in the event of fatal injury caused by theft or fire, up to a maximum of RM10,000 or one half of the total sum covered, whichever is lower.
     
  You are advised to check for the details of the coverage, exclusions and extensions with your takaful operator or agent before purchasing a plan.  
     
 
     
 
When you take out a housing loan, the bank will generally require you to take up a houseowners takaful plan as well as a mortgage takaful plan. Mortgage takaful is a family takaful plan which will automatically settle your house financing in the event of your death or permanent disability.

In most cases, you only need to pay a single contribution for the mortgage takaful.The contribution rate depends on your age, the amount, profit rate and term of financing.

If you sell your house or redeem the financing earlier, you will receive a pro rata refund of your contribution for the unexpired period of takaful.
 
 
     
 
     
  When applying for a takaful plan :  
     
 
Do disclose all material facts on the risks to be covered.
Do read the 'Important Notice' on the Proposal Form.
Do answer all questions fully and accurately.
Do complete and sign the Proposal Form yourself.
Do pay the contribution.
 
     
 
Don't leave any question in the Proposal Form unanswered.
Don't use ticks and dashes to answer the questions requiring full answers.

Don't withhold or misrepresent any material fact. Otherwise, the plan issued will be void, meaning that the claim can be repudiated.

Don't underinsure, as you will be penalised by the application of ‘average condition’ in the event of a claim.

Don't sign any blank forms.
 
     
  After a loss or damage :  
     
 
Do notify the takaful operator immediately
Do report to the police all cases involving theft

Do send all writs or claims from third parties immediately upon receipt to the takaful operator
Do cooperate with the takaful operator and loss adjuster
Do communicate with the takaful operator in writing
Do take reasonable action to mitigate further losses
 
     
 
Don't admit liability, pay or negotiate with the third party on claims

Don't deliberately inflate the claim with the belief that the takaful operator will systematically reduce the claim. This is untrue and could also cause the claim to be forfeited

Don't leave the damaged building exposed to further losses without taking reasonable precautions to ensure its safety
 
     
 
     
  If your home is damaged and you need to claim from houseowners/householders takaful, please follow these procedures. This will make it easier for your claims to be processed.  
     
     
 
Notify your takaful operator by telephone as soon as possible.
Complete the Loss Notification Form and send it to the takaful operator.
Be ready to provide the following basic information:
 
- Date, time and place of loss;
- Brief description of how the loss or accident occurred or how the loss was discovered
(provide police report, if available);
- Information on the degree of involvement of third parties (if any) and the extent of their injury
and damage sustained; and
- Brief description of the loss and/or damage.
Make a police report immediately, especially if you suspect theft or malicious damage.
Take reasonable actions to protect the building from further loss or damage
Keep damaged items for inspection by the takaful operator.
 
     
     
 
Send the claim immediately to the takaful operator.

You must not admit or deny responsibility for the claim, or negotiate or settle any claim, unless notified by the takaful operator to do so in writing.

The takaful operator will decide whether to negotiate, defend or settle any claim made against you by a third party.
 
     
     
  The amount of compensation you get depends on the basis of the cover:  
     
  Replacement basis (old for old)  
  You will be paid the cost of repairing the damaged building less the amount for wear, tear and depreciation; or  
     
  Reinstatement value basis (new for old)  
  It will pay the full cost of repairing the damaged building without any deductions being made for wear, tear or depreciation, provided that the sum covered is adequate to cover the total cost of reinstating the building.  
     
  The takaful operator has the option to settle the claim for partial loss (repairable damage) on the following basis:  
 
   
  - Payment of the cost of repairs;
  - Payment of cash amount of loss or damage; or
  - Reinstatement or replacement of the partially lost or damaged property.
 
     
  In the event of total loss (i.e. the damage is so bad that it has made the property uneconomical to be repaired), the takaful operator will either pay:  
 
   
  - cost to rebuild; or
  - sum covered, whichever is lower
 
     
  Unless the certificate states otherwise, the cover is normally considered to be on replacement basis. If you want to be covered on reinstatement value basis, the certificate should have the relevant clause attached to it.  
 
 
  Download
here
To understand the houseowners / householders takaful policy better, download our
booklet
or visit our FAQ section on home takaful. You may also contact a takaful operator for more information.
 
 
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