Frequently Asked Questions

Products

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Home Protector
1.  What is the amount to insure for building & contents under Home Protector?
The amount or sum insured must represent the cost of reinstatement or the market value of the property destroyed or damaged.
2.  What does under insurance mean?

Under-insurance exists when the sum insured is less than the value of the property at the time of loss. When under-insurance exists average will be applied. The effect of the application of average is that the Insured will be the insurer for the under-insured amount.

3.  If my client underinsures, what will be the consequence?

If at the time of loss or damage, the cost of rebuilding exceeds the sum insured, then the insured will have to bear a ratable proportion of the loss accordingly.

Illustration:

i) Total Loss

    If the cost of rebuilding is $500,000 but the sum insured taken up by client for the building is $250,000. When a total loss occured, the company will have to be responsible for

    Sum Insured $250,000

    Value at time of loss $500,000

    Loss or damage $500,000

 

   $250,000 (Sum Insured)

   ------------------------------ X $500,000 (loss) = $250,000

   $500,000 (Value at time of loss)

 

   The company will be responsible for $250,000 (500,000 - 250,000)

 

ii) Partial Loss

 

    Sum Insured $250,000

    Value at time of loss $500,000

    Loss or damage $100,000

 

    $250,000 (Sum Insured)

    --------------------------- X $100,000 (loss) = $50,000

    $500,000 (Value at time of loss)

 

    The company will be responsible for $50,000 (100,000 - 50,000)

4.  Can a lanlord buy Home Protector for his house which is rented out and cover the tenant's belongings as well?

The landlord can take up Home Protector for his house but can only cover his building and his own belongings in the house only. There is no insurable interest on his tenant's belongings. The tenant can take up a separate Home Protector to cover his contents instead.

5.  I plan to go for a holiday overseas; will the policy cover any loss or damage happening during my absence?
The Policy does not cover loss or damage when the building is left unoccupied in excess of 60 consecutive days.