A house is not just an asset, but a safe haven too. Reside with peace of mind and soul with a Shariah compliant home insurance plan by Etiqa Insurance Berhad.
Do I need Etiqa Houseowner and Householder Takaful?
Etiqa Houseowner and Householder Takaful follows the Islamic concept of Wakalah, whereby you appoint Etiqa as an agent to manage your Takaful policy and investment, in exchange for a fee.
Whether or not you are a faith-abiding individual, this Islamic home insurance plan does not only cover you financially in time of duress, but also ensures that your fund is managed ethically. Plus, you get to perform charity and receive one too under Tabarru’ concept.
What are the key covers of Houseowner and Householder Takaful?
There are two similar, but somewhat unique, home Takaful covers: Houseowner and Householder.
Under Houseowner, your building (the infrastructure of your house) will be insured against loss and damage due to perils such as fire, flood, and impact among others. You are also covered for third party liability of up to RM50,000 for accident occurred in your house.
Your personal belongings, under the Householder section, will not only get the same coverage from the named perils above, but will also cover for extended circumstances such as property removal, death due to robbery, loss and damage to servant’s properties and damage to mirror.
Can I add on benefits to complement my basic coverage?
Yes you may, by paying additional premiums. You may want to increase the limit of loss of rent to 10% if you plan to sublet your house for rental income, or include other perils such as strike, riot and malicious damage, in case you live in a precarious area.
How much premium do I have to pay?
Your premium, or contributions, will depend on the sum insured and selected additional perils, including a Wakalah Fee of up to 40%, comprising an agent commission of 15% and management expenses of up to 25%.
In addition, you will also need to pay for a Stamp Duty of RM10 and a 6% GST, where applicable. The premium charged follows the standard minimum rate in accordance with the Malaysia Fire Insurance Tariff.
How much should I insure my home and valuable contents?
The rules of thumb to purchasing the right home insurance plan is knowing the appropriate amount to insure your house and personal belongings. It is worth noting that you should always cover your house based on the market value of your property at the time of loss and damage.
In other words, your total sum insured should correspond to the cost of rebuilding of your house and replacing its contents. You may also select to insure your property based on the Market Value (equivalent to the depreciated value of lost / damaged items) or Reinstatement Value basis.
Always check with your insurance agent regarding this matter to avoid being underinsured or paying too much.
Can I cancel my home insurance policy?
Yes, you may cancel your home insurance policy. However, prior to cancellation, you should notify Etiqa Insurance Berhad by way of a written notice. Upon cancellation, you will receive a partial refund of the premium provided of which you have not made any claim during the insurance period.