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FAQs on Houseowner/Householder Insurance

    I have taken a loan to buy an apartment. The financier wants me to buy insurance cover for the apartment, even though I am already paying for the insurance policy taken by the management corporation (MC) on the property. Why must I pay for double insurance? Can I pay for one policy only?
      Under the Strata Title Act, it is mandatory for the MC of buildings such as apartments and condominiums to purchase fire insurance policy for the whole building. The individual unit holder is then required to pay to the MC, his/her respective premium portion. If the unit is purchased through a loan, the financiers would also normally require the borrower to obtain an insurance policy for the unit, leading to a situation of double insurance.

      However, if you have attained the loan from a banking institution under BNM’s supervision, it has been agreed that borrowers will not be required to buy another insurance policy for their apartments or condominiums. Instead, the banking institutions will accept the insurance policy already purchased by the MC subject to certain terms and conditions. If your loan is not from a lending institution under the supervision of BNM, you can negotiate with the institution concerned.

    If I own an apartment, how will I be compensated under the master policy taken by the MC in the event of a loss?
      In the event of a loss, the insurance company will compensate the MC as the master policy owner. As the unit owner, you can get your compensation from the MC.
    What type of policy should I purchase to protect my house and the contents?
      The compensation of insurance claims depends on the type of policy that you have purchased. If you have the basic fire policy, you will only be compensated against the loss/damage of the building by fire, lighting or explosion. The houseowners policy provides you with additional cover such as flood, burst pipes etc. In order to protect the contents of your house, you may purchase the householders policy.

    I made a theft claim under my householders policy when my maid ran away and took with her some of my jewellery. However the insurance company repudiated my claim. Can the insurance company do this?
      One of the basic conditions in a householders policy is that the insurance company will only pay compensation for theft if there has been violent breaking into or out of your house. In this case, since the maid did not break into the house, you will not be eligible for compensation.

    I obtained 50% financing for the purchase of my house. The bank required me to purchase insurance cover up to the amount of the loan. Is this adequate cover?
      In line with the principle of indemnity, the insurance company will compensate you based on the sum insured or market value of the property at the time of loss, whichever is lower. If you had insured your house at lower than its market value, you are considered to be self-insured for the difference between these values. In this case, in the event of loss/damage, you will be compensated only up to 50%.

    There are many items to be insured under a householder policy. How do I substantiate my claims if there has been a loss?
      It is very important to be able to provide evidence to support any claim. Make sure that you keep the invoice, bill or payment voucher of such items to substantiate your claim.

    What type of insurance policy should I buy to protect my house which is near or on top of a hill?
      When a house is near or on top of a hill, there is a higher risk from landslide. As such, it is advisable to ensure that your house insurance policy covers subsidence and landslide. To also protect the contents of your house, you may buy the householders policy.
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