HOME INSURANCE

Bismillah..

1) Actually home insurance (HI) is under property insurance. Its provide coverage to owner of the property who pay premium for their house. in return, the owner will get coverage for their dwelling.

2) Basic coverages are excluded losses due to flood, hurricane, earthquake, riot, termite, riot and catastrophe. Those whose live in area that prone to disasters, they can buy additional insurance which known as rider for their property. in a result, they need to spend more on their premium depending on the probability of the event to occur. so high risk area, need high premium to be paid. for example, dwelling located near fire station and install fire extinguisher is charged cheaper premium compare to doesn't has it. 

 3) Is it HI is compulsory? actually in US, all property owner who make a mortgage loan with bank or insurance company is obligate to buy this insurance but no need in Malaysia.

4) Since, i am actuarial student, my friends always ask me about "is it we need buy an insurance?".
the answers are depend on the individual itself because different people have different income, affordability, dependent other criteria which important to considers. for me is easy, if you are rich and do not have dependent, don't waste your money to buy it. but if u need it, be smart in purchase the insurance.  :)