Guide to Houseowner and Householder Insurance

When purchasing home insurance, you should insure your property based on its rebuild cost, not its market value - because land is not subject to damage and is not covered by insurance. To help you calculate an appropriate sum insured, PIAM offers a free Building Cost Calculator online. By entering details such as your built-up area, number of storeys, and finish quality, you can get an estimated rebuild cost. This estimate typically includes demolition costs and professional fees.

If you under-insure your home, the Average Clause (or Average Condition) will apply. This means any claim payout will be reduced in proportion to the level of under-insurance.

• Since 1 March 2024, the Service Tax (SST) on home insurance premiums is 8% (up from 6%)
• The cost of building materials and labour continues to rise (approximately 3% per year)
• To ensure adequate coverage, consider adding an inflation guard clause to your policy  or review your insured sum each year.

• Notify your insurer immediately―either by phone or online. Be prepared to provide your policy number, date and time of the incident, and a brief description of what occurred. 
• Take reasonable steps to prevent further loss or damage and document everything with photos or videos. For theft, capture images of entry points. 
• Complete the claim form and submit it together with supporting documents, such as:
  
  
  • police report (for theft/robbery cases)
  • fire report (for fire-related claims)
  • original receipts or proof of purchase for affected items
  • contractor's repair quotations
  • medical report (if applicable)
• A loss adjuster may be appointed by your insurer depending on the extent of the loss. Do not dispose of damaged items until approval is given.
• Keep copies of all submitted documents. For your own record, consider saving digital backups as well.

• Simple claims: If all documentation is complete, insurers typically aim to settle claims promptly.
• Complex claims (e.g. structural damage, or those requiring permits): May take between 8 to 12 weeks to finalize. However, you may request interim payments up to 40% of the estimated loss, to carry out urgent repairs while the full assessment is ongoing.

• Take photos of your belongings and store digital receipts in a secure online location. • 
• Update your insured value after renovations or significant purchases.
•  Review your coverage annually - it only takes 20 minutes and could protect your finances in the event of a disaster. 

To ensure a smooth and stress-free claims process, please follow our official Tokio Marine Home Insurance claim procedures . We provide a clear step-by-step outline of the required documents and tips for accelerating your claim settlement.

With Malaysia’s unpredictable weather and rising construction costs, having adequate home insurance is no longer just about fulfilling bank requirements - it’s about safeguarding your family’s future. Find the right balance - avoid overpaying for unnecessary coverage, but don’t risk under-insuring your home and belongings. Use PIAM’s Building Cost Calculator and review your policy details to ensure you have the protection you need.

The benefit(s) payable under eligible policy is protected by PIDM up to limits. Please refer to PIDM’s TIPS Brochure or contact TMIM or PIDM (visit www.pidm.gov.my).