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4 tips towards protecting your biggest life investment


Source: rf123

Now that you have found your dream home, let’s take a look at how you can go about protecting it.

For most of us, purchasing a home is one of our biggest financial commitments and a major life milestone. It’s something that we’ve scrutinised over and over again before actually making the decision to be a bona fide homeowner. Having poured your heart and soul (and life savings!) into it, you would want to do everything in your power to ensure that your house is well protected.

Having your home damaged by unforeseen incidents or broken into can be financially and emotionally distressful for you and your family. To combat this, the best thing to do is to pick the right home protection coverage so that you can have a total peace of mind.

Similarly, investors who purchase a rental property will want to see their asset taken care of and that it will continue to generate the maximum possible returns. Won’t it be great to be able to be able to sleep well at night knowing that your property is being safeguarded from possible threats such as water damage or malicious tenants?

Who wouldn’t want to protect something they love with all their heart, right?

However, with an abundance of home insurance policies available out there, it can be daunting to choose the right coverage for your house. A basic houseowner insurance covers the cost of replacing the bricks and mortar and rebuilding your home, but most Malaysians opt to protect their belongings with a home contents insurance.

So how do you exactly select the right protection for your home? Here are 4 tips to help you decide:

#1 Get your buildings and contents covered

home-protectionSource: rf123When you’re surveying for home insurance, remember to consider protection for two parts – the building and its contents. If your home is still under a mortgage loan, your bank would have purchased a house owner insurance on your behalf to cover the building of your home, but not the contents inside it, leaving it unprotected.

Therefore, be sure to purchase an additional Home Contents Insurance to protect all of your valuable belongings.

Should your mortgage already have been paid off, then don’t forget to purchase your own Homeowner Insurance and Home Contents Insurance for a complete protection.

#2 Insure for the rebuild cost of your home

Source: rf123

Keep in mind that you should insure your home for its replacement value, and not just for what you paid for it. This should comprise the cost to rebuild your home, including the cost of renovations, fixtures and fittings if your home is totally damaged.

For those who want to calculate the rebuilding cost of your home, you can do so with the Building Cost Calculator.

Ascertaining the cost of rebuilding your home will then help you decide on the coverage that best fits your property. Ultimately your home (Building) should be protected against loss or damage caused by fire, lightning, explosion, aircraft damage, impact damage, bursting or overflowing of water tanks or pipes, and other natural disasters.

#3 Take inventory of your possessions

Source: Getty Images

Ensure that you have a proper and detailed inventory of your possessions. Make a list of all your home’s contents and the value of those items based on receipts and purchase dates.

You might even want to take photographs of the items on the list. Also, remember to insure the total value of your home contents, including personal and household items that belong to you and your family.

Besides that, do make sure that your Home Contents is covered on ‘All Risk’ basis, which means it covers all the perils as per a Houseowner cover; accidental damages as well as ‘Full Theft’ (burglary or theft without signs of forcible entry).

#4 Look for home insurance with flexible coverage

Always choose a home insurance that allows you to select the type of protection that suits your needs such as AXA SmartHome Optimum (Enhanced). It offers two types of flexible coverage – Homeowner Insurance and Home Contents Insurance. You have the choice to select either one, or both of the coverage for a complete protection.

Regardless of whether you live in a landed property or high-rise building, you can always find a plan that fits your budget and requirements.

So what are you waiting for? Safeguard your home and valuable contents now with AXA SmartHome Optimum (Enhanced). For more information, please click here.

Edited by Reena Kaur Bhatt

Disclaimer: The information is provided for general information only. Malaysia Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

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