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Insuring Where the Heart Is: Key Drivers Influencing Houseowner and Householder Insurance Adoption in Puncak Alam, Selangor

Author

Listed:
  • Ainol Fizy Ruslan
  • Mohd Faizol Rizal Mohd Rasid
  • Nurul Hidayah Zainal
  • Ahmad Al-Amin Faisal
  • Muhammad Hafiz Marzuki
  • Nurul Farehah Anuar

Abstract

The increasing frequency of climate-related disasters such as floods, fires, and extreme weather events in Malaysia has amplified the urgency for adequate home protection. However, underinsurance remains a critical issue, with less than half of Malaysian households holding fire or home insurance policies. This leaves millions, especially in high-risk areas like Puncak Alam, Selangor, exposed to financial vulnerability. This study investigates the key drivers influencing homeowners’ intentions to purchase Houseowner and household insurance, focusing on awareness, perceived adequacy of product coverage, and household income. Guided by Protection Motivation Theory and consumer behavior principles, the study employed a quantitative research design. A structured survey was distributed to 100 property owners using convenience sampling. Descriptive and Pearson correlation analyses were conducted to examine the relationship between the independent variables and purchase intention. Findings indicate that awareness, product coverage, and income are all significantly and positively associated with purchasing insurance. Respondents with a better understanding of policy coverage and greater financial capacity were more likely to consider insurance as a critical part of their financial planning. However, response variation indicates continued gaps in product understanding and cost accessibility, particularly for extended coverage. The study recommends that insurers develop clearer communication strategies and educational outreach to address these gaps. Policymakers are also urged to consider initiatives such as subsidies or mandatory minimum coverage to improve insurance accessibility for vulnerable groups. Ultimately, property insurance must be recognized as an essential pillar of personal resilience and national disaster preparedness.

Suggested Citation

  • Ainol Fizy Ruslan & Mohd Faizol Rizal Mohd Rasid & Nurul Hidayah Zainal & Ahmad Al-Amin Faisal & Muhammad Hafiz Marzuki & Nurul Farehah Anuar, 2025. "Insuring Where the Heart Is: Key Drivers Influencing Houseowner and Householder Insurance Adoption in Puncak Alam, Selangor," Information Management and Business Review, AMH International, vol. 17(2), pages 159-173.
  • Handle: RePEc:rnd:arimbr:v:17:y:2025:i:2:p:159-173
    DOI: 10.22610/imbr.v17i2(I)S.4582
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    References listed on IDEAS

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    1. Afiza Azura Mohamad Arshad & Azitadoly Mohd Arifin & Soo-Cheng Chuah, 2024. "Understanding the Decision to Purchase Health Insurance Among Academicians," Information Management and Business Review, AMH International, vol. 16(3), pages 972-978.
    2. Ganderton, Philip T. & Brookshire, David S. & McKee, Michael & Stewart, Steve & Thurston, Hale, 2000. "Buying Insurance for Disaster-Type Risks: Experimental Evidence," Journal of Risk and Uncertainty, Springer, vol. 20(3), pages 271-289, May.
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