Fire Insurance Calculator
Insuring for less than the rebuild cost does not just cap your claim — it scales it down. This shows what you would actually receive.
What you would receive
You would receive RM 87,500.00
You are insured for 87.50% of the rebuild cost, so the insurer pays 87.50% of the loss — even though the loss is well under your sum insured. That is the average clause.
Details
- Insured to value
- 87.50%
- Shortfall you bear
- RM 12,500.00
- Annual premium
- RM 115.50 (RM 9.63/mo)
Estimates for planning only, not insurance advice. The premium rate and rebuild value are your own figures — policy terms vary by insurer (some include a 15% tolerance clause). The actual payout is decided by your insurer based on the policy and claims assessment.
Frequently asked questions
- What is the average clause?
- If you insure for less than the full rebuild cost, the insurer pays the same proportion of your loss. Insured for 87.5% of the rebuild cost? A RM100,000 loss pays RM87,500, and you carry RM12,500 — even though the loss was far below your sum insured. It is the part of fire insurance that catches people out.
- What should my sum insured be?
- The cost to rebuild the structure, not the market price and not what you paid. Market price includes the land, which cannot burn down, so insuring for the purchase price usually means paying for cover you cannot claim.
- Is fire insurance compulsory in Malaysia?
- If you have a housing loan, your bank will require it and usually arranges it. What is not automatic is checking that the sum insured still matches today's rebuild cost — construction costs rise, and a policy set years ago can quietly leave you under-insured.
- Does this cover contents and flood?
- No. A basic fire policy covers the structure against fire and lightning. Contents, flood, and other perils are separate covers or add-ons, so treat the figure here as the building only.
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