I've finished paying my house loan.

The HouseOwner insurance that was purchased with the loan where the beneficiary was the bank, is now been terminated.

So I am shopping for HouseOwner Insurance (not the basic Fire Insurance) for my house:
* 22 X 75 Basic Double Story Terrace House
* Current Market Price is around 900k

My question is:

1. How much should the sum insured be? Any recommendation

2. What does the below clause in the insurance policy mean?


I'm seen a few pictures of house being damaged by fire which is creeping me out.



This post has been edited by creativ: Dec 11 2017, 03:03 PM

I want to know too.
How much fire insurance cost (against damage to house structure) ?

Insurance company will send out adjuster to value the damage cost and compensate accordingly.

So there is no fix answer, as every house is different.

Can get a valuer to estimate your house value first. Then you'll know how much fire insurance to buy.

Would I need to insure the full value ? I assume the cost of repair would be lesser than that.

would a new car owner insure his car to the full value?
there is this betterment clause?

I always assumed the car might be stolen or total destroyed so that's why need to insure full value.
But still can under insure actually, if you don't mind paying the difference in loss...

Quote from an article:
Under-insurance – If you insure your vehicle at a lower sum than its market value, you will be deemed as self-insured for the difference, i.e. in the event of loss/damage, you will only be partially compensated (up to the proportion of insurance) by your insurance company.
Over-insurance – Should you insure your vehicle at a higher sum than its market value, the maximum compensation you will receive is the market value of the vehicle as the policy owner cannot ‘profit’ from a motor insurance claim.

anyone tried Allianz Smart Home cover? HouseOwner insurance should cover against fire, right?
I think can put less than market value, cost of repair should not be that high (and excludes land value) ...

You can use this web site to estimate sum insured: https://bcc.piam.org.my

As a reference point, I am insuring (a 22x75 with about the same market valuation as yours) for reconstruction cost of 450k and contents of 100k. The cost is about RM 1,300 through Allianz.