Do I need insurance when buying property in Malaysia?

 

It's April, may many blessing and good things be happening to you!

How is your progress with buying your dream house or getting the gem property you have always wanted?

If you're thinking or in the process of buying property in Malaysia, you might be wondering if you need insurance. 

The answer is yes, you do. Here's why.

Insurance is a way of protecting yourself from financial losses in case something unexpected happens to your property. For example, if your property is damaged by fire, flood, theft, or vandalism, insurance can help you cover the repair costs or replace your belongings. Without insurance, you would have to pay for everything out of your own pocket, which can be very expensive and stressful.

There are different types of insurance that you can get for your property in Malaysia, depending on your needs and preferences. Some of the most common ones are:

Fire insurance

This covers the damage caused by fire to your property and its contents. It is usually mandatory for properties that are financed by a bank or a mortgage company.

Houseowner insurance

This covers the damage caused by various perils to your property's structure and fixtures, such as walls, roofs, doors, windows, etc. It is optional but highly recommended for properties that are fully paid or self-financed.

Householder insurance

This covers the damage caused by various perils to your property's contents, such as furniture, appliances, electronics, etc. It is optional but highly recommended for properties that are rented or leased.

Mortgage Reducing Term Ansurance (MRTA)

This covers the outstanding balance of your mortgage loan in case of death or total permanent disability. It is usually required by banks or mortgage companies as a condition for granting you a loan.

Mortgage Level Term Assurance (MLTA)

This covers the original amount of your mortgage loan in case of death or total permanent disability. It is similar to MRTA but offers more benefits, such as cash value and premium refund. It is optional but advisable for borrowers who want more protection and flexibility.

As you can see, insurance is not only a legal requirement but also a smart investment for your property in Malaysia. It can give you peace of mind and save you from financial troubles in the future. 

Therefore, it is important to compare different insurance plans and choose the one that suits your budget and needs best.

Happy property hunting!

Signing off for now, do take care!

Ashlin REN01427