| Date | : | 24th February 2025 |
| To | : | Teega Residents |
| From | : | The Management |
REF: ADVISORY – INSURANCE POLICIES
In Malaysia, strata properties (e.g., condominiums, apartments, etc.) require insurance policies tailored to their unique ownership and usage dynamics. Property owners (proprietors) should consider several key insurance policies to protect their property and financial interests. Additionally, landlords and tenants have different perspectives and coverages that need to be considered.
While the Joint Management Body (JMB) provides a master insurance policy covering the building structure and common areas, this does not extend to personal belongings or liabilities within individual units. Below are the key types of insurance policies that proprietors should consider:
I. PROPRIETOR/OWNER INSURANCE
a. Houseowner / Home Insurance
- Protection against risks such as fire, flood, lightning, explosion, and natural disasters, especially if not already covered by the master insurance policy.
b. Home Content Insurance
- Covers personal belongings inside the unit, including furniture, electronics, and appliances.
- Protection against theft, burglary, fire, water damage, and other risks.
c. Public Liability Insurance
- Protects against legal claims from third parties for injuries or damages occurring within the unit.
- Useful if guests, tenants, or service personnel suffer injuries on the premises.
d. Temporary Alternative Accommodation Insurance
- Covers costs for temporary housing if the condo becomes uninhabitable due to insured events (e.g., fire, flood, etc.).
For more information on the insurance services(Secure Home) provided by Tokio Marine tailored
for the proprietor/parcel owner.
https://teega.com.my/home-insurance-by-tokio-marine-securehome/
II. LONG-TERM LEASE LANDLORD INSURANCE
Strata property landlords renting to long-term tenants should consider the following insurance policies:
a. Landlord Insurance
- Covers financial risks such as tenant default, malicious damage, and loss of rental income.
- May include legal expenses coverage for disputes with tenants.
b. Fire and Perils Insurance (for Contents)
- Under the Strata Management Act 2013, the strata management is legally required to provide building insurance, which typically covers only the structure. It does not cover the landlord’s personal fixtures, fittings, or furnishings inside the unit.
- Contents insurance will cover damage to items like built-in cabinets, appliances, and other movable assets owned by the landlord.
c. Loss of Rental Income Coverage
- Protects the landlord in case the property becomes uninhabitable due to insured events like fire or flooding, ensuring continued rental income.
III. SHORT-TERM RENTAL LANDLORD INSURANCE
Short-term rentals (e.g., Airbnb hosts) pose unique risks, so additional coverage is essential:
a. Short-Term Rental Insurance
- Protects against damages caused by guests, including accidental or malicious damage.
- Covers liability for injuries sustained by guests within the property.
b. Contents Insurance
- Protects furniture, electronics, and other household items against theft or damage caused by short-term guests.
c. Legal Liability Insurance
- Provides coverage for accidents or injuries caused to guests during their stay.
d. Business Interruption Insurance
- Provides compensation for loss of income if the property cannot be rented out due to covered damages (e.g., fire, flooding).
IV. LONG-TERM LEASE TENANT INSURANCE
Tenants in strata properties also require insurance to protect their belongings and liabilities:
a. Renters’ Insurance (Householder Insurance)
- Covers personal belongings, such as furniture, electronics, clothing, and more, against risks like fire, theft, or water damage.
- Some policies may include personal liability coverage if the tenant accidentally causes damage to the landlord’s property or injures others.
b. Legal Liability Coverage
- Protects tenants from liability claims if they accidentally damage common property or injure someone in shared areas (e.g., lobby, gym, or pool).
V. SHORT-TERM RENTAL TENANT INSURANCE
Short-term tenants generally have limited exposure but may still benefit from the following coverage:
a. Travel Insurance with Accommodation Protection
- Provides coverage for personal belongings during the stay and liability protection if the tenant causes accidental damage to the property or injury to others.
b. Deposit Protection Insurance
- Covers disputes related to security deposits, especially if the landlord claims damages that the tenant may not have caused.
c. Liability Insurance
- Protects tenants from liability in case of accidental damage to the rented unit or common property.
TAILORED APPROACH
- Consulting with insurers: Landlords and tenants should consult insurers familiar with the specific risks associated with strata properties in Malaysia to tailor policies according to their needs.
- Leading insurers: Notable insurers in Malaysia, such as Allianz, AIA, and Zurich, offer strata-specific insurance plans that cater to the unique needs of strata property owners, landlords, and tenants.
By selecting the right coverage, all parties can minimize financial risks and ensure peace of mind while living in or investing in strata properties.
On behalf of
Badan Pengurusan Bersama Menara Teega
Contact Number : 07-287 7303 (Teega Residence)
: 07-287 7313 (Teega Suites)