Fire vs Householder Insurance in Malaysia
In Malaysia, Fire Insurance and Householder Insurance are two distinct types of general insurance policies that cater to different needs. Below is a comparison of their key differences, with a focus on the perils covered under each policy:
1. Fire Insurance
Fire Insurance is a basic property insurance that primarily covers losses caused by fire and related perils. It is often required by banks for mortgaged properties.
Perils Covered (Standard Fire Policy)
- Fire (accidental or external causes)
- Lightning
- Explosion (of gas or boilers used for domestic purposes)
- Aircraft Damage
- Impact by Vehicles/Animals
- Riot, Strike, and Malicious Damage (RSMD)
- Storm, Tempest, and Flood (usually optional, requires an extension)
- Earthquake & Volcanic Eruption (optional)
- Subsidence & Landslide (optional)
Key Features
- Typically covers the building structure (not contents unless specified).
- May require additional extensions for full protection (e.g., flood coverage).
- Often purchased by property owners, landlords, or businesses.
2. Householder Insurance
Householder Insurance is a comprehensive home insurance policy designed for homeowners/tenants, covering both the building and contents against a wider range of risks.
Perils Covered (Typical Householder Policy)
- Fire, Lightning, & Explosion
- Bursting or Overflowing of Water Tanks/Pipes
- Theft & Burglary (often included but may have sub-limits)
- Storm, Tempest, Flood, and Landslide
- Impact by Vehicles/Aircraft
- Riot, Strike, and Malicious Damage (RSMD)
- Earthquake (sometimes optional)
- Accidental Breakage of Glass & Sanitary Fixtures
- Domestic Appliances & Electrical Damage
- Public Liability (covers legal liability if someone is injured on your property)
Key Features
- Covers both the building and personal belongings (furniture, electronics, jewelry, etc.).
- Includes additional living expenses (if the home becomes uninhabitable).
- More suited for homeowners or tenants who want broader protection.
Key Differences in Perils Coverage
| Peril | Fire Insurance | Householder Insurance |
|---|---|---|
| Fire & Lightning | ✅ Yes | ✅ Yes |
| Explosion | ✅ Yes (limited) | ✅ Yes |
| Theft/Burglary | ❌ No | ✅ Yes (usually) |
| Flood/Storm | ❌ (Optional) | ✅ Yes (often included) |
| Burst Pipes/Water Damage | ❌ No | ✅ Yes |
| Earthquake | ❌ (Optional) | ✅ (Sometimes optional) |
| Public Liability | ❌ No | ✅ Yes |
| Accidental Damage | ❌ No | ✅ Yes (limited) |
Which One to Choose?
- Fire Insurance: Best for property owners who only need basic fire-related coverage (e.g., landlords, commercial buildings).
- Householder Insurance: Best for homeowners/tenants who want all-risk coverage for both the building and personal belongings.
Would you like a recommendation based on your specific needs?
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs.
Published By:
Jacky Tan 陈奕綸
Jacky Tan is a Licensed Financial Planner regulated by Bank Negara Malaysia (BNM) and the Securities Commission (SC), specializing in corporate risk & insurance planning, money market strategies, and employee benefits solutions. With over 15 years of experience in the financial industry, he has successfully designed high-yield financial plans for a diverse clientele, including corporations, families, and high-net-worth individuals.
Recognized for his expertise in tailor-made financial planning, Jacky provides strategic advisory services that help clients achieve their long-term financial objectives. To date, he manages an impressive RM100 million in Assets Under Advisory (AUA), delivering optimized investment portfolios and risk management solutions.
His holistic approach integrates corporate insurance structuring, money market opportunities, and talent-centric benefit programs, ensuring sustainable growth and financial resilience for his clients.
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