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
As a Chartered Wealth Advisor and Licensed Financial Planner regulated by Bank Negara Malaysia (BNM) and the Securities Commission (SC), I provide sophisticated financial strategy to high-net-worth individuals, families, and corporations.
With over 16 years of experience, my practice is dedicated to managing the complete life cycle of wealth. I architect tailored solutions that address the complex challenges of:
Wealth Accumulation: Deploying advanced money market strategies and high-yield investment portfolios to accelerate capital growth.
Wealth Preservation: Implementing robust corporate and personal risk management frameworks, including bespoke insurance structuring, to protect assets.
Wealth Distribution: Designing strategic plans for efficient legacy and succession planning, ensuring your wealth fulfills your long-term vision.
I currently advise on over RM300 million in Assets Under Advisory (AUA), leveraging a holistic approach that integrates capital market access, corporate insurance solutions, and talent-centric benefit programs to build financial resilience and drive sustainable growth for my clients.
I am committed to delivering institutional-grade advisory services to private clients.
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