Should I buy a home insurance?
Imagine witnessing your properties and years of hard work being swept away by flood or burned to dust by fire or ransacked and robbed off in a split second…
Like a life insurance, home insurance ensures that you are compensated for the loss and damage due to those perils and more. Be prepared for the unexpected such as the monsoon season, sudden inferno and acts of criminal minds.
What are the key covers of Lonpac Householder Insurance?
Lonpac Householder Insurance covers for your household goods (moveable properties and personal effects) against specified risks.
You can insure most or all your personal belongings, subject to a limit from the total sum insured, to cover for the cost of recovering / reinstating at the time of loss or damage.
That’s not all, you can also claim for Public Liability for up to RM50,000 and claim for death of insured person up to RM10,000.
Can I add on benefits to my basic home insurance coverage?
Absolutely, over an additional premium to your standard coverage. Depending on your needs and budget, you can extend the coverage to include perils such as subsidence and landslip, riot strike and malicious damage, accidental damage to mirror and increase of limits to public liability and loss of rent.
How much premium do I have to pay?
Your home insurance premium will depend on the sum insured, additional extensions required and a commission between 15% to 25% paid to the insurance agent.
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 Lonpac 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.