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How is Householders Insurance cover different from Fire? |
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Like the Houseowners policy, Householders insurance is tailored made for the private dwelling premises and provides coverage for the Contents therein. Its cover is equal to that in the Fire Insurance plus additional cover like the under mentioned:
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loss of contents insured arising from theft or attempted theft |
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covers contents temporarily removed from the private dwelling |
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breakage of mirrors |
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compensation for death of the Insured occasioned by outward and visible violence caused by thieves or by Fire |
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loss or damage caused to clothing and personal effects of the Insured's domestic servants |
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liability to the public in respect of accidents in or about the private dwelling house |
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reasonable additional expenses necessarily incurred by the Insured at a hotel or lodging house in consequence of the premises so damaged as to render it uninhabitable |
Although the Householders Insurance package is more expensive when compared to the same perils in the Fire Insurance (at 0.398% against 0.187% for a detached or attached house of class 1A construction) the wider coverage provided makes it well worth the consideration. |
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| Q |
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Can fixtures and fittings be covered in the Householders Insurance since my Bank has arranged the necessary fire insurance on the building?
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Yes. For the benefit of policyholders, fixtures and fittings like wall & ceiling lighting, air-conditioners, water heaters, built-in cabinets, built-in wardrobes and the like can be insured under Houseowners Insurance (at a very low rate of 0.106%) but if expressly requested, insurers would be happy to cover the items under the Householders section for the appropriate (higher) rate. |
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| Q |
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My bank has taken up a Fire or Houseowners Insurance for me. Can I instruct them to handle the Householders insurance as well? |
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You can ask them but it is advisable to make the insurance arrangement yourself as the Bank has no insurable interest in your house contents. It is a very simple procedure of approaching your insurance company for the proposal form and quotation. |
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| Q |
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I keep jewellery in the house. Will the Householders Policy cover me for losses on my jewellery arising from theft or other perils stated in the policy?
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| A |
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Yes, the Householders Policy covers losses to Platinum, Gold and Silver Articles, Jewellery and Furs but limited to one-third of the Total Sum Insured on Contents. However, any item in this category exceeding 5% of the Total Sum Insured on Contents must be specifically declared to the insurers.
For example, a Householders policy with Total Sum Insured of RM20,000 can claim up to RM6,667 for jewellery and if any single item is valued at more than RM1,000 (being 5% of RM20,000) then the jewellery concerned must be lodged separately to the insurers beforehand, when insurance was first arranged. Failure to do so would result in your insurer only reimbursing you not more than RM1,000 per piece of jewellery at the time of loss. |
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| Q |
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How much should I insure the house contents for?
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Contents in the policy includes "household goods and personal effects of every description (unless otherwise mentioned by the Insured) being the property of the Insured or any member of his family normally residing with him whilst contained in the Private Dwelling". This definition would be the first guide.
Secondly, unless otherwise arranged, the Householders policy pays the insured value or the market value of the insured property, whichever is the lower subject to any excess which the Insured is required to bear under the policy. The alternative is to arrange insurance on "reinstatement value" basis. Under this agreement, the Insurer will reinstate or replace the insured property as it was when new, ignoring the elements of wear and tear. So when setting the amount for insurance purpose, also be guided by the valuation basis of your choice.
A reminder: if at the time of loss the value is collectively of greater value than the sum insured, the Insured shall be considered as being his own insurer for the difference. |
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