WHAT DOES FIRE INSURANCE ACTUALLY COVER?

I find that some people always think that fire insurance only pays us for loss or damage to the building caused by fire. In fact, the coverage of fire insurance is very much wider.

Besides fire, fire insurance also pays us for loss or damage to the building caused by

1. explosion
2. theft
3. malicious damage
4. strike & riot
5. aircraft damage
6. impact damage
7. bursting of pipes
8. floods
9. other perils.
   

The building here includes fixtures, fittings, interior decorations, walls, gates and fences.

Then, is fire insurance very expensive? Fire insurance offered by AIA Berhad is called Home Plus. To me, the premium of the plan is reasonable. If a building (house) is worth RM 100,000, the annual premium is RM 116 (0.116 % of RM 100,000) or RM 119 (0.119 % of RM 100,000) depending on the type of the building.