For your home: houseowner vs householder
Home insurance in Malaysia usually comes in two parts. Many families need both.
| Houseowner insurance | Householder insurance | |
|---|---|---|
| Covers | The building: structure, walls, roof, fixtures, renovation | The contents: furniture, appliances, belongings |
| Who buys it | The owner of a landed home. Banks normally require fire cover on a mortgaged property | Owners and tenants who want their belongings protected |
| Typical extras | Flood, storm, impact damage | Burglary, theft with forcible entry |
For condos and apartments, the building is normally insured under the management body’s master policy, so owners usually focus on householder cover for the inside of the unit.
The sum insured for the building should be what it would cost to rebuild, not the market price of the house, which includes the land.
For your shop
A shop fire policy can cover:
- the building, if you own the shophouse,
- renovation, fixtures and fittings, often the tenant’s biggest cost,
- stock-in-trade, the goods you sell,
- furniture and equipment such as fridges, counters and POS systems.
Stock levels change during the year. Before festive seasons, many shops hold far more stock than usual, so tell Lulu if your stock value swings a lot.
For your factory
Factories carry bigger values and more risk, so the details matter:
- Building and machinery insured separately, each with its own sum insured.
- Raw materials, work in progress and finished goods declared as stock.
- The nature of the work. Processes involving heat, chemicals or dust affect the premium and the conditions.
- Fire safety equipment such as extinguishers, hose reels and sprinklers, kept in working order.
Ask about consequential loss (business interruption) cover too. It helps pay fixed costs and lost profit while the factory is being rebuilt.
Extensions worth considering
- Flood: important in low-lying parts of the Klang Valley.
- Storm, tempest and windstorm
- Riot, strike and malicious damage
- Impact damage from vehicles
- Burglary, usually a separate policy for shops and factories
Exact extensions and wording depend on the insurer and policy.
Avoid under-insurance
If the sum insured is lower than the real value, most fire policies apply an average clause: the claim is reduced in proportion to the under-insurance. For example, if your stock is worth RM200,000 but insured for RM100,000, a RM50,000 loss may only be paid at about half.
Lulu reviews sums insured with you each year so the cover keeps up with renovations, new machinery and higher stock. For more detail, read the guide to fire insurance for shops and factories.