PETALING JAYA: Could a simple homeowners insurance policy under RM100 offer a solution for such trying times and help ease the financial heartbreak from the wrath of nature?
With fallen trees becoming a common sight as climate conditions escalate globally, the aftermath of harsh weather such as floods and thunderstorms can leave devastating damage to homes and vehicles, leaving their owners with astronomical bills.
This can put a dent in their savings or leave them in a dilemma as they figure out ways to settle the hefty repairs.
Veteran insurance consultant Leonard Tan said based on the risk their properties are susceptible to, owners could have fire or homeowner insurance policies tailored accordingly.
He said there are various riders or add-ons to property insurance policies that offer restitution at affordable premiums of under one percent of the coverage sum.
Tan said that apart from fires, these “special peril riders” cover damage to property such as damaged roofs or walls from natural disasters, namely floods, landslides, storms, uprooted trees or branches, and bush fires.
“The riders or add-ons are a small sum to pay in case of such emergencies. For a coverage of RM100,000, the premium for a rider for liability from floods is just 0.086% or RM86 per annum. It is wiser to take up a homeowner policy since it covers most of these perils unless it is stated otherwise,” said Tan, who has been operating his insurance agency for over three decades in Kelana Jaya here.
He said other add-ons that insurance companies offer for property owners are damage from burst water pipelines or tanks, riots, malicious attacks and damage from aircraft crashes.
Tan said the natural disaster was also available for motor vehicle insurance and the premium varies with the insured sum.
Senior insurance agent V. Unni Krishnan said property owners should be encouraged to take up homeowners insurance with adequate coverage as it could help with funds and offer peace of mind when one is hit by natural calamities. He recounted his own experience more than a decade ago when a fire broke out at this house in Senawang due to an electrical fault.
“The losses were estimated at RM20,000. Fortunately, I had fire insurance that compensated me RM13,000 for the damage to the home structure but not for the kitchen appliances that were destroyed. Had I added on a home content rider, I would have received full compensation,” Unni said.
