16 Questions
What is the primary purpose of property insurance?
To pool financial risks associated with property losses
When was the first modern homeowner's policy sold?
1958
What is the definition of 'peril' in the context of insurance?
An unexpected event causing financial loss
How many main types of residential property insurance policies are there in Malaysia?
3
What does householder insurance primarily cover?
Fire and theft
What is the purpose of automobile insurance?
To protect against liability claims
What does the Basic fire policy cover?
Loss or damage by fire, lightning, and explosion
When buying comprehensive cover for a house and its contents, which policies should be purchased?
Houseowner policy and householder policy
What does the Houseowner policy not cover?
Loss or damage due to subsidence and landslip
What is the importance of ensuring adequate insurance coverage for a property under financing?
To cover the cost of rebuilding the property in case of loss/damage
What is required if you own a strata-titled property such as an apartment?
To get a copy of the individual certificate of insurance for your property
What does the Householder policy provide coverage for?
Coverage for fatal injury to the insured
What may result in double-insurance according to the text?
Purchasing another houseowner policy for a strata-titled property
What is the responsibility of the company managing a strata-titled property?
To ensure the property has coverage under a master policy
What type of properties require additional insurance if under financing?
Strata-titled properties only
What does the Houseowner policy not cover without payment of additional premiums?
Loss or damage due to riot and strike
Study Notes
Property Insurance
- Primary purpose: to protect against financial loss due to damage or destruction of property
History of Insurance
- First modern homeowner's policy sold: not specified (but implied to be a historical event)
Key Insurance Concepts
- Peril: a risk or cause of loss or damage to property or person
Residential Property Insurance in Malaysia
- Main types of policies: not specified (but implied to be multiple)
Householder Insurance
- Primarily covers: building and contents of a home
- Purchasing comprehensive cover for a house and its contents requires: two policies (Houseowner and Householder)
Automobile Insurance
- Purpose: not specified (implied to be different from property insurance)
Basic Fire Policy
- Covers: fire-related damage or loss
Importance of Insurance Coverage
- Ensuring adequate insurance coverage for a property under financing is important: to avoid financial loss in case of damage or destruction
Strata-Titled Properties
- Required insurance: additional insurance coverage for shared facilities and common areas
- Company managing a strata-titled property is responsible for: maintaining and insuring shared facilities and common areas
Houseowner Policy
- Provides coverage for: building and some risks
- Does not cover: certain risks or perils without payment of additional premiums
Double-Insurance
- May result from: purchasing duplicate or overlapping insurance policies
Financed Properties
- Type of properties that require additional insurance: those under financing
Test your knowledge on homeowner’s insurance, liability insurance, and automobile insurance. Learn about buying and maintaining insurances, recovering losses, and filing claims.
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