Property is one of the most expensive item that you may bought in your life, so you spend your hard earning money to buy it, you need to make sure it cover with insurance to protect it, the following are some of the tips that you may go through when you buying an insurance for your property
- Insured value/sum insured – Get a professional property valuer to estimate the value of your property based on rebuilding costs. For property insured by the bank, the coverage is usually based on the amount of loan taken. It’s advisable to top up coverage for better protection. Householder policy holders should declare items they want insured to get full compensation. Maintaining documents, receipts and photographs of these items prove helpful in the event of a claim.
- Average condition – If the insured value in your insurance policy is less than the rebuilding cost, the ‘average condition’ will apply in the event of a claim. It is advisable to re-evaluate your property and its contents annually for a more accurate insured sum that covers renovations, enhancements and additional movable household items.
- Insurance purchase responsibility – Insurance only needs to be purchased upon vacant possession from the developer. It is mandatory for the ‘management’ to purchase fire insurance for the entire building for strata title properties. Still, respective unit owners or tenants are advised to purchase or top up on the coverage. Do check if your bank already required you to purchase property insurance beforehand.
- Premium and policy – Ensure you pay your premiums on time, within 60 days from the inception date or the cover will be null and void. Insist on a receipt for premiums paid and contact the insurance company if you have not received your policy within one month of purchase.
- Making a claim – Notify your insurance company in writing with full details as soon as possible and take necessary measures to mitigate further loss. Advisable to contact your insurance agent immediately to find out relevant procedures and action required.
- Complaint – If you are dissatisfied at any time regarding your insurance claim or policy, submit a written complaint to the complaints unit of your insurance company. For further action, you may take the matter up in writing to Bank Negara or the insurance mediator at the Financial Mediation Bureau.
GOOD TO KNOW
When purchasing residential landed property, one is paying for the land and the building structure. When purchasing insurance for it, concentrate on the costs of re-building the structure and the contents of the home.
Employ a valuer to estimate these costs before taking up a comprehensive insurance package to ensure coverage of the costs of re-building and loss of contents. Strata-titled owners are advised to purchase both houseowner and householder policies as the insurance these owners are required to take up under the high-rise management only covers the cost to re-build the structure.