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Questions and Answers
What is the purpose of property insurance?
What is the purpose of property insurance?
- To provide compensation for automobile accidents
- To recover on a liability or a loss to your property
- To eliminate catastrophic losses associated with property damage (correct)
- To pool financial risks associated with health insurance
When was the first modern homeowner's policy sold?
When was the first modern homeowner's policy sold?
- 1968
- 1958 (correct)
- 1988
- 1978
What is a peril in the context of homeowner's insurance?
What is a peril in the context of homeowner's insurance?
- An event or happening that causes a financial loss (correct)
- An insurance claim for a burglary
- A liability for home damages
- A type of residential property insurance policy
How many main types of residential property insurance policies are there in Malaysia?
How many main types of residential property insurance policies are there in Malaysia?
What is the main focus of automobile insurance policy?
What is the main focus of automobile insurance policy?
What was needed before the introduction of the first modern homeowner's policy in 1958?
What was needed before the introduction of the first modern homeowner's policy in 1958?
What does the Basic fire policy cover?
What does the Basic fire policy cover?
Which policy includes coverage for loss or damage due to flood and burst pipes?
Which policy includes coverage for loss or damage due to flood and burst pipes?
What is the extension available in the Houseowner policy that covers loss of rent and liability to third parties for accidents in your house?
What is the extension available in the Houseowner policy that covers loss of rent and liability to third parties for accidents in your house?
Under which circumstance does the Householder policy not cover theft claim?
Under which circumstance does the Householder policy not cover theft claim?
What is an important point to consider when buying insurance for your property under the Houseowner policy?
What is an important point to consider when buying insurance for your property under the Houseowner policy?
What type of property may require you to purchase another houseowner policy if it is under financing?
What type of property may require you to purchase another houseowner policy if it is under financing?
What does it result in if your apartment is under financing and the financier requires you to purchase another houseowner policy?
What does it result in if your apartment is under financing and the financier requires you to purchase another houseowner policy?
What agreement has been made if your property is financed by a bank or finance company under the supervision of Bank Negara Malaysia (BNM)?
What agreement has been made if your property is financed by a bank or finance company under the supervision of Bank Negara Malaysia (BNM)?
What should you ensure you get if you own a strata-titled property?
What should you ensure you get if you own a strata-titled property?
What should you ensure about the insured value when buying insurance for your property under the Houseowner policy?
What should you ensure about the insured value when buying insurance for your property under the Houseowner policy?
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Study Notes
Property Insurance
- The purpose of property insurance is to provide financial protection against loss or damage to property.
History of Homeowner's Policy
- The first modern homeowner's policy was sold in 1958.
Key Terms
- A peril in the context of homeowner's insurance refers to a cause of loss or damage to property.
Types of Residential Property Insurance Policies in Malaysia
- There are several main types of residential property insurance policies available in Malaysia.
Automobile Insurance
- The main focus of an automobile insurance policy is to provide financial protection against loss or damage to vehicles.
Introduction of Modern Homeowner's Policy
- Before the introduction of the first modern homeowner's policy in 1958, a fire policy and various optional extensions were required.
Basic Fire Policy
- The Basic fire policy covers fire and lightning risks.
Extended Coverage
- The Houseowner policy includes coverage for loss or damage due to flood and burst pipes.
- The Houseowner policy can be extended to cover loss of rent and liability to third parties for accidents in your house.
Exclusions in Householder Policy
- The Householder policy does not cover theft claims if the policyholder is not residing in the house.
Important Considerations when Buying Insurance
- When buying insurance for your property under the Houseowner policy, it is essential to consider the rebuild value of your property.
- If your property is under financing and the financier requires you to purchase another houseowner policy, it may result in duplicate coverage.
Financed Properties
- Properties under financing may require the purchase of another houseowner policy.
- If your apartment is under financing and the financier requires you to purchase another houseowner policy, it may result in duplicate coverage.
Bank Financed Properties
- If your property is financed by a bank or finance company under the supervision of Bank Negara Malaysia (BNM), you have a tripartite agreement between the borrower, the lender, and the insurer.
Strata-Titled Properties
- If you own a strata-titled property, you should ensure you have a master policy that covers the building and common areas.
- When buying insurance for your property under the Houseowner policy, you should ensure the insured value is adequate to cover the rebuild value of your property.
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