Would like to ask about insurance for shop lot (ground floor is rented out to a hp business, owners staying at first floor).
The value is about RM800-900k.
Currently, the insurance coverage is RM250k for the shop lot, with 24 * RM2000 (rental loss) and RM30k furnishing.
Questions:
1. Is there any guideline in increasing the coverage for the shop lot? It sounds too little to me.
However, the servicing agent says RM250k should be enough to rebuild the whole unit from scratch if burned down and insurance company will not pay anything more than the cost of building it, so I will just be wasting money if the coverage is increased even if the shop lot can fetch millions in the open market.
2. Is there any benefit in insuring the furnishing, considering the depreciation? In current coverage of RM30k, will the insurance company compensate me RM30k for the furnishing if the whole shop is burned down?
3. What other advice can you experts give? The renewal is due in Mar next year.
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