Insurance policyholders advised to verify if their coverage includes earthquake damage
News Article: PIAM CEO Urges Homeowners to Check Insurance Coverage for Natural Disasters
In the wake of recent earthquakes in Segamat and Sri Medan, Parit Sulong, as well as tremors reported in Sabah and other parts of the peninsula, the CEO of the General Insurance Association of Malaysia (PIAM), Chua Kim Soon, has issued a reminder for property owners to review their insurance policies and ensure they are fully protected against natural disasters such as earthquakes, floods, and windstorms.
Chua emphasized the importance of understanding what is included in current policies and whether a more comprehensive houseowner and householder policy would be a better option. Homeowners who are unsure about their current coverage should speak with their insurers, agents, or brokers to discuss their options for more comprehensive protection.
According to Chua, many basic fire insurance plans do not cover disasters such as earthquakes, floods, and windstorms. Taking up a "perils" option would provide wider protection, including for earthquakes. A basic fire policy may not provide coverage if a home is damaged by an earthquake or flood.
Chua also warned about the risk of underinsurance, where homeowners insure based on market value rather than the cost of rebuilding, which could lead to lower payouts when making a claim. To avoid this, homeowners are advised to use PIAM's free Building Cost Calculator at bcc.piam.org.my to estimate the correct insured amount.
In addition, Chua has encouraged homeowners to read the fine print, keep digital copies of all key documents, and report any incidents to their insurer as soon as possible to avoid delays in claims. He also reminded policyholders to be aware of the gaps in their insurance coverage and take steps to ensure they are fully protected.
Recently, Chua Kim Soon was authorized by an insurance company to offer a new, more comprehensive basic earthquake insurance package. This development comes as Chua has used the recent earthquakes in Sabah and parts of the peninsula as a warning for homeowners to be aware of the gaps in their insurance coverage and take steps to ensure they are fully protected.
In conclusion, with the increasing unpredictability of weather patterns, it is crucial for homeowners to review their insurance policies and ensure they are covered for natural disasters. By taking the necessary steps to understand their coverage and protecting themselves with a more comprehensive policy, homeowners can rest easy knowing they are prepared for whatever Mother Nature throws their way.
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