Homeowners rarely buy natural disaster insurance policies

Surge of energy: A lightning strike during heavy rain in Kajang.

PETALING JAYA: Most insurance companies have policies offering compensation for damage caused by lightning strikes, but few homeow­ners ever purchase these policies.

Insurance agent H.N. Chan estimated that only about one-third of those in the Klang Valley subscribe to such insurance policies.

While most homeowners buy basic fire insurance for their hou­ses, he said, insuring the content of their homes against damage from lightning strikes is much less common.

“The basic fire insurance compensates for damage caused by fire due to electrical short circuits or cooking incidents, but it doesn’t cover damage caused by thunderstorms, floods, or lightning strikes,” he said.

Chan added that the standard fire insurance policy only offers compensation for damage to the structure of the building.

“Householder insurance, on the other hand, is comprehensive and covers various natural disasters. This type of policy insures the whole house and the items inside it,” he said.

Electrical equipment such as refrigerators or televisions damaged by lightning strikes can be compensated as per market value, he said.

Other expensive items such as pianos or even luxury handbags can be insured against all types of natural disasters, he added.

Another insurance agent, who wanted to be known only as Wong, said car owners can get insurance against the effects of thunderstorms via the Special Perils coverage.

“This add-on covers any damage to cars caused by natural disasters including flash floods, storms, and landslides,” he said.

The Special Perils coverage is an add-on to the basic car insurance, he said, and is offered at a rate of 0.5% of the sum insured.

Wong added that corporations seeking to insure their buildings from lightning strikes would usually opt for fire insurance.

“However, this depends on the type of business activity done in the building. If it is a building with a high risk of fire, insurance companies may not cover it,” he said.