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18.3.2021 7 INTERVIEW A recent survey conducted by the Mal- ta Financial Services Authority found how nearly one in every four people have never purchased home insurance and many of those who subscribe to home insurance, do so when taking out a loan, since this is imposed on them by the Bank. In fact, once the loan is fully paid, they stop paying their Home Insurance. "If people were more aware of the benefits they get to enjoy when they take out a home insurance, they would certainly never look at it as an unwant- ed expense but as a wise investment," Tonio Montesin from Island Insurance Brokers told BusinessToday. Montesin specialised in home insur- ance cover explained that many peo- ple are still not aware that when they take a home insurance cover that also includes contents, they would also be protected against loss of rent and alter- native accommodation if the insured property is rendered uninhabitable fol- lowing damage by an insured peril. "Almost no one knows that an insur- ance cover can also refund a client the cost of advertising the loss of his or her pet anywhere in Malta." Montesin said homes are people's biggest investment and as such, people keep investing heavily in them, embel- lishing them and making them more comfortable, welcoming and more in line with their idea of the perfect home. "So, it remains a strange fact that not- withstanding how our homes appreci- ate in value, many people still choose to leave them unprotected without the appropriate insurance cover and prefer to spend money on other things rather than on protecting their most valuable asset with adequate home insurance," he said. "ese people fail to see that a good home insurance actually, is not 'money thrown down the drain' but an invest- ment in one's investment." e MFSA's survey confirmed how the link between bank loans and home insurance cover remains very strong with more than 44% of respondents stating that they bought their home in- surance policy when taking out a home loan and 56% saying they only bought the policy because it was a prerequisite for their home loan. "When one considers that on average, a typical home insurance would cost around €1 a day, the natural question would be: is it really worth risking not having one's home insured?" Montesin said. e MFSA survey also confirmed significant confusion among consum- ers when it comes to home insurance, where many are unable to distinguish between buildings and contents insur- ance and just under one in three are not able to name their insurance un- derwriter. What would a typical home insurance cover? Typical home policies would contain four sections, namely the building, the contents, personal possessions and the liability section. e building section would cover the strcuture and all permanent fixtures, such as tiles, bathrooms, doors, win- dows, AC units and solar panel sys- tems and more. Most underwriters would also include the kitchen though it is always advisable for one to ask his underwriter about this. e contents would include anything that is movable in a home, from furni- ture and appliances to TV, HiFi equip- ment, computers and clothing. "ere is then the personal posses- sions section which consists of the more personal moveable items such as watches, items of jewellery, mobile phones and laptops amongst others," Montesin said. "Finally, the liability section which covers the actual owner of the insured property against any liability at law, arising out of his negligence should a third party suffer injury or damage to his person or property." Most policies will also include the owner's liability towards domestic staff. e policy will then also state what the home is being insured against. e list of 'perils' under the home policy is a long one and it would typically include fire, lightning, smoke, earthquake, van- dalism, storms and flooding, breakag- es theft or attempted theft, escape of water and oil from domestic appliances and more. Will more people keep their home cover policies? Yes, the indications are positive. In fact, the MFSA's survey also showed how most people today seem to appre- ciate their insurance cover more with 70% planning on maintaining their policy after they paid off their loan while 30% who have made at least one insurance claim, reporting a high satis- faction score of 3.96 out of 5. "People have started understanding the real value behind a typical home policy," Montesin said. "As far as our customers are con- cerned, they are very happy with our service and know that we are always very open with them and willing to help them understand what they stand to benefit from their home cover." Home insurance needs to be seen as an investment With 56% of Maltese only having bought home insurance because it was a prerequisite for a home loan, BusinessToday spoke to Tonio Montesin to try and debunk some of the myths surrounding home insurance

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