How to protect Hurricane Damage with Insurances?

How to protect Hurricane Damage with Insurances?

How to protect our property from Hurricane Damage with Insurances? Typhoons and hurricanes frequently occur to our shore. Thus, are we prepare for this monstrous destruction?. Having said that, have we buy adequate insurance coverage to protect the sweet nest. But nevertheless, it is not too late to consult your intermediary. Not only frequently occur, but also the damage becomes more severe as times go. In fact, Climate change is taken too lightly by world leaders. Likewise, climate change also highlighted by Greta Thunberg in the recent United Nations youth forum.

Generally speaking, Malaysia is a safe haven from the natural disaster, but lately, storm-lashed on Penang, Kedah, and Perlis. The storm was a side effect of Typhoon Lekima heading towards eastern China, according to the Malaysia Metrological Department.

How to protect Hurricane Damage with Insurances?
How to protect Hurricane Damage with Insurances?

How to protect Hurricane Damage with Insurances?

Can I insure my house against Hurricane, cyclone, typhoon, windstorm, and flood? Of course, you can. 1st you need to have a fire or home insurance, not only your house, but also the contents, including your personal effect. You need to incur some extra premium with these 2 extension clauses. In the long run, it is worth it.

How to protect Hurricane Damage with Insurances?
How to protect Hurricane Damage with Insurances?

Basically, typhoon insurance covers only wind damage. Loss or damage caused by rain, regardless of whether driven by wind. The damage covered only the actual damage to the roof or walls by the direct force of a typhoon. The insurer is liable for loss or damage to the building. Whereby, the rain entering the building through openings in the roof or walls caused by the typhoon. Having said that, the negligence of the insured, not payable for the water damage due to the doors, windows, transoms or roof lights left open. Even, with the existence of the presence of a typhoon. In fact, the insurer does not cover human error whether it is intentionally or unintentionally. There is no such saying the insured’s right to claim when one has policy coverage of their home or house content. 

Will Homeowner Policy Cover Hurricane Damage?

How to protect Hurricane Damage with Insurances?

Homeowner policies cover different aspects of damage to your home caused by storms and tempests. Some hurricane damage may be covered. However, in most cases due to the types of extensive damage, a hurricane may cause. The majority of the people in a hurricane-prone area need more than one policy to cover damages. Whether you covered or not depends on:

  1. The type of damage.

2. How it was caused.

3. The type of homeowner coverage you purchased and where you live.

How to protect Hurricane Damage with Insurances?

High-Risk Zones and Restrictions on Coverage

As a matter of fact, different coverage for property that build on high or low-risk zone designation. Depending on the location you live, your home, renter or condo policy may cover some of your property from damages resulting from hurricane-force wind damage. However, areas that are prone to hurricanes (and also tornadoes) may have exclusions for this type of wind damage. Additionally, you need to add an endorsement for windstorm coverage. 

In addition to variations in coverage based on the state or area, you live in. To make the matter worse, due to the complexity of hurricanes cause different kinds of damage. Thus, under your homeowner policy alone,, not all damages are covered. Therefore, it is best to consult a qualified agent to handle the contract of policy.

How to protect Hurricane Damage with Insurances?

Need More policy for Hurricane Home Damage Coverage

Hurricanes damage to property hail from various sources. Although people often worry about wind damage from hurricanes. In actual fact, they forget that the water damage is the most severe. Because of this, it is important to consider the different kinds of coverage. The insurance covers Hurricane damage in three ways:

  • Homeowner, Renter or Condo Insurance (Windstorm and sewer backup endorsements).
  • Windstorm Coverage.
  • NFIP Flood Insurance and Excess Flood Insurance (for sum insured of homes above $250,000 in value).

Sewer Back-Up Endorsement

How to protect Hurricane Damage with Insurances?
How to protect Hurricane Damage with Insurances?

Note the actual cause of sewer backup may also occur. If the cause is heavy rainfall, a sewer backup endorsement needs to appear in the policy. The coverage based on the wording and exclusions of your policy. However, equally important how the insurer gives a definition of the event. If it is a result of a flood, sewer backup may not pay.

For example: If the sewer backup caused by a flood, and you did not have flood insurance, thus, no liability to the insurer. Sewer Back-Up could happen without a flood, and in this case, it may be covered if you had the endorsement.

What Kinds of Damage Will a Hurricane Cause?

Hurricanes cause various types of damage. The most common damages to your home from a hurricane or tropical storm will occur from certain risks and perils like:

  • Wind 
  • Heavy Rainfall
  • Flooding
  • Storm surge
  • Tornadoes
  • Sewer Back-Up

Flood Insurance

How to protect Hurricane Damage with Insurances?

The flood insurance, not cover are loss or damage caused directly or indirectly by landslide, subsidence, explosion whether incidental or not. Likewise, it applies to theft whether occurring during or after a flood. The following do not constitute a flood.. For instance, overflowing, bursting or leakage of water tanks, pipes, gutters, downpipes, and public water supply mains, backing up of sewers or drains.

How Flood Insurance Works

How to protect Hurricane Damage with Insurances?

By definition, a flood insurance policy is conversely different than basic hazard insurance or homeowner’s insurance policy. As a matter of fact, it only covers losses due to flooding. Standard homeowner’s insurance policies will cover most other losses with the exception of flooding. Moreover, the claimable events for homeowner’s insurance include losses sustained by fire. Also, it includes wind damage, and falling trees, to name a few. However, unlike a standard hazard policy, the insured need to buy separate flood insurance for a building and its contents.

National Flood Insurance Program’s

Flood insurance policies cover not only for all homes and commercial properties but also in the National Flood Insurance Program’s (NFIP) floodplain. However, properties located in a flood zone and are mortgaged by a federally backed lender. Thus it will require adequate flood insurance coverage to receive financing aids. The NFIP regulates premiums are all the same regardless of purchase from an agent. Uniquely, consideration like flood probe zone designation, age of the property, and numbers of floors coupled with the frequency occurrence of the flood have impact premium calculation.

Motorcar damage insurance

The standard 1st party motor Car policy does not cover “any accident, loss, damage. Or liability directly or indirectly, proximately or remotely occasioned by caused by any traceable of a flood, typhoon, and hurricane. Some insurers to cover these perils at an additional premium. Others reject it even though the insured willing to pay the extra premium. It is mainly due to a reinsurance or co-insurance treaty.

Personal accident policy usually does not cover against a tidal wave.

Some insurers cover you against hurricane only if your house made of concrete under a galvanized iron roof. Or against flood only if your house is built on high ground. It is best to let your insurance agent or broker negotiate with their principal.

In the final analysis, the insured should take up an adequate hurricane damage house insurance.

How to Survive the Hurricane with 3 Tips for Safety?

How to Survive the Hurricane with 3 Tips for Safety?

How to Survive the Hurricane with 3 Tips for Safety? This is most worry by the people who live in the hurricane zone area. Firstly, what is Hurricane? In fact to survive the hurricane without hurt or emotion loss are utmost important. How can we confront the imminent Hurricane fast approaching to our door step? Equally important, the upfront preparation is the key factor for survival. Now let talk about on how to survive the Hurricane with 3 tips for safety.

As a matter of fact, Hurricane frequently lashes the coastal area, with ever-increasing speed and power has caused the loss of human life in third nation like Bangladesh, massive destruction to property and marine ship. Moreover, it uproot tree along its way, building collapse like a matchbox, flood inundate farmland perished crops and livestock. The economic loss could run into billions of dollars, and take year to restore the damages. 

What is Hurricane?

A hurricane is a tropical cyclone, with a low pressure system that generally forms the tropics. It accompanies by thunderstorms and, in the Northern Hemisphere, a counterclockwise circulation of winds near the earth’s surface. They are three types of Tropical cyclones namely: 

Tropical Depression
Is an organized system of clouds and thunderstorms with a defined surface circulation and maximum sustained winds of 38 mph (33 kt) or less? Coupled with a sustained winds are a 1-minute average wind measured at about 33 feet (10 meters) above the surface. While 1 knot = 1 nautical mile per hour or 1.15 statute miles per hour and is abbreviated as “kt”.

Tropical Storm

It is a strong thunderstorm with a defined surface circulation and maximum sustained winds of 39-73 mph (34-63 kt).

How to Survive the Hurricane with 3 Tips for Safety? 1

Hurricane How to Survive the Hurricane with 3 Tips for Safety

 An intense tropical weather system of strong thunderstorms with a well-defined surface circulation and maximum sustained winds of 74 mph (64 kt) or higher.

Classification of Hurricane

Firstly, we categorized Hurricanes according to the strength of their winds using the Saffir-Simpson Hurricane Scale. A Category 1 storm has the lowest wind speeds, while a Category 5 hurricane has the strongest. These are relative terms, because lower category storms can sometimes inflict greater damage than higher category storms. It depend on where they strike and the particular hazards they bring. In fact, tropical storms can also produce significant damage and loss of life, mainly due to flooding.

Hurricane Names

When the winds from these storms reach 39 mph (34 kts), the cyclones are names. Years ago, an international committee developed names for Atlantic cyclones (The History of Naming Hurricanes). In 1979 adopted a six year rotating list of Atlantic storm names — alternating between male and female hurricane names. Storm names used to facilitate geographic referencing. For warning services, for legal issues, and to reduce confusion when two or more tropical cyclones occur at the same time. Through a vote of the World Meteorological Organization Region IV Subcommittee, Atlantic cyclone names retired usually when hurricanes result in substantial damage or death or for other special circumstances.

Before the Hurricane surviving 3 tips for Safety

In the first place, we need to prepare an adequate storage supply of meals and drinking water to keep our body and soul together.

Equally important to store at the least 2 weeks of canned food and mineral water.

In addition preserve headlamp, flashlights, candles and solar power bank with led light and compass and of course, not to forget your hand phone covered with waterproof casting within easy reach.

Likewise not only thoroughly examine your own home but also make the necessary repair for those unstable parts

Unpredictable future event, in the long run, we harvest the mature plants or crops. Similarly, keep live stock on a higher safety ground.

Correspondingly for the fisherman, anchor boats in a sheltered area to avoid blew off or boat draft to an open sea.

In the worst scenario if you needed to evacuate you sweet home, ensure that the house properly locked. Equally important to carry clothing, blankets, whistles, first aid package, solar power bank charge with hand phone, led head lamp and some dried food and mineral water and some petty cash and credit or debit card.

Stay indoors.

How to Survive the Hurricane with 3 Tips for Safety?
How to Survive the Hurricane with 3 Tips for Safety?

Listen constantly having the latest weather forecast announced government broadcast or any social media information.

Uniquely, boil water at least 20 minutes before drink it. Moreover, by boil the water it kills the water-borne bacteria that cause cholera outbreak. Furthermore, use lid to cover the water container or bottle. By the same token, saves some lighted candle or solar power packed emergency lamp. 

Do not wade floodwaters to avoid being electrocuted and avoid the water snake bite or water-borne diseases. Of course, best to paddle with a boat to across the water if necessary. 

If there is a need to move to an evacuation center, follow those instructions carefully. Again, evacuate calmly. Close the home windows padded locked the door switch off the main electricity fuse. All in all place essential home equipment and belongings on a high floor.

Equally important avoid wade through the fast swift following water. Not to forget make a communication plan on how to get in touch with family member. By the same token, ensure a venue to meet up if the smartphone is not working. Not to forget to note down the important emergency number if need arises.

After the hurricane Survive the Hurricane with Tips for Safety

Unfortunately, if hurricane ravage your private home to the ground. It is best seek shelter at the hotel on par standing with your home as to avoid conflict dispute on home insurance. In long run, it saves a lot of hassle and hectic dealing with insurer.

Return home only after authorities have given the green light announcing that your house suitable for dwelling. In essence, microscopic examinated the house not infested with water snake. Prevent is better than cure, in the same token, ensure that no wires immersed that can cause electrocution. It is better safe than to say sorry later stage. Further not to forget lodge a report of broken electrical cables and fallen posts to the concerned authority.

Discard the water stagnant in tires, cans or pots to avoid a breeding ground for mosquito that can cause dengue or malaria. Remember, preparedness is the key. Be smart and stay alert.

So, be warning, as the climate progressively warms with more powerful upward trends hurricane coupled with storm surge. Alarmingly, the research team found that future Hurricane could reach up catastrophic damage Category 5 storms. 
Apparently, with the earth becomes more warmer in the last century, the climate change coupled with melting of Iceberg at Greenland in a vast scale, we are expecting more frequent and intense hurricane that resulting massive destruction in the near future. In the near future as the hurricane strike our land become intensive and frequent, we must equipped our-self with the basic on how to survive the hurricane with 3 tips of safety.

How to Survive the Hurricane with 3 Tips for Safety?
How to Survive the Hurricane with 3 Tips for Safety?

Temple Riot How to Protect your Property from being Damages?

Temple Riot How to Protect your Property from being Damages?

Temple Riot How to Protect your Property from being Damages?

Recently, the Subang Jaya Hindus temple riot shocking and terrified the whole world with prominent coverage by the mass media. The churned car piling on the eerie silence road aftermath had alarmed the public. How to safeguard their private property?  Contrasting, 2000 mobs rioted on the Hindus temple caused horrendous massive traffic on a standstill that stretching for miles. The hiring of the professional thug, would anybody can self-defences against them? Of course, the most sensible is to flee for your own safety. But, nevertheless, how shall we protect our movable and immovable chattels?Temple Riot How to Protect your Property from being Damages? 2

Temple Riot, how to protect your property from being damaged?

Riot in a nutshell.

At least three persons present in one venue.
Gather for a common purpose.
Execute or inception of the common purpose.
Assist mutually one another by force, if necessary, in the execution of the common purpose.
Display forcibly and violence to alarm one person of reasonable firmness and courage.

Malicious Damage covers the non-fire damage acted by an individual person acting out of personal malice as opposed to a large group. Nevertheless, the riot coverage formed part of malicious damage.

Virtually, a malicious person with the sole intention to damage your property e.g. like spraying acid or paint.

A malicious act caused by anyone committed during a disturbance of the public peace resulting in the physical loss or damage yielding a fruitless result. Who is the victim? Often the public needs to pay a high hefty loss of money and endless emotional damage. Loss caused by sabotage and terrorism with the use of force or violence. Regardless the purposes could it be political, religious or ideological motivated with the intention to influence any government and/or to put the public in fear for such purposes.

How to protect our property from riot?

Regardless of your social status in the community, when a disaster strikes on your house, indeed a misfortune, so, how shall we overcome? Depend out a handout from the concerned authority or seeking a public donation. Notwithstanding, Self-help is a wise idea.

Having said that, the preferred solution by examined closely your fire or householder or house owner policy. Finally, contributed an insignificant sum of premium and have a peaceful mind. In the end, an insurer shall pay any physical damage or loss due to riot provided strike, riot and malicious damages inserted as an extension clause. Terminated the countless sleepless night and pointless to save a penny, ultimately, you lost an arm and leg when a riot occurs.

Let put a scenario, an exporter stuffed their produce in the FCL, as the space constraints in the factory premises. The container parked by the side of the public road in front of the premise, within the view of the 24 hours security guard.

Well, in another case, an importer due to the closing of unloading bay was full, after 6 pm, the workers had gone home for the day. Consequently, on seeing this situation, the haulier company left the FCL container on the opposite of the road.

If the rioters damaged part of the consignment cover under ICCC “A” clause for both cases, will the insurer repudiate the claim?

What about land transport like car, low-loader, forklift. Excavator, motorcycle, Is riot cover such movable automobile?.

A riot occurs, how we can protect the merchandise from riot? How shall we deal with kind of situation, Reader, please share your view and comment!. Humbly, I sincerely appreciated your time for writing your view or comments. Let us share the knowledge in this forum together.

Why buy Life Insurance, Prospect Distantly Avoid Plague

Why buy Life Insurance, Prospect Distantly Avoid Plague

Why buy Life Insurance, Prospect Distantly Avoid Plague

Why buy Life Insurance, Prospect Distantly Avoid Plague at all cost. Regrettably, the Malaysian life insurance penetration is merely 56% of the total population in 2016. It implied that the balance 44% of the citizen is uninsured or not qualified to have life insurance due to inborn defect. Why we have such a pathetic scenario? Is the agent or assured to blame? Briefly, to say, it applies to both in our shore here.

Not only, no insurance also that the sum insured inadequate. The average is about RM100, 000.00 to RM150, 000.00, can it feed your beloved one or dependent for 5 or 10 years if one day you forget to return home. Moreover, an amount varied between the urban or rural living plus also the working spouse or children. Nevertheless, the meagre sum insured is hardly enough to last for a year living in the city with 2 or 3 kids in toll for a single parent.

Why Buy Life Insurance.

Is it the responses of the parent to take care of the children welfare when one demise? Very often, cool-blooded landlord eradicated single parent out from their rental home. Subsequently, like adding fuel to fire, the bank publicly auctions off the house for 6 months default in repayment without any insurance to cover the loan tenure.

The innocent child is also the victim when one parent remarried. Stepparent often abused the defenceless kid. Recently, a newspaper reported rape, physically tortured with multiple cut and bruise and old wound over the emaciated body. The police rescued a retarded boy from the evil mother. The reason given, chained the boy like a dog in a small cage preventing he strolled out. Can you soul be rest in peace if someone does to your child? Unless you are heartless, no human-bear to see the suffering of abusive and inhumane tortured.

Compensation for the death of insured under householder policy
Compensation for the death of insured


In the ever-burgeoning budget of a newly married couple with a kid, car loan, parking petrol and upkeep of the vehicle eat up a chunk of their salary each month. Moreover, there is the student loan, housing repayment, utility bill, an emergency fund like a kid doctor bill and love gift to aged parent. Luckily, a break even or a blessing to have a tiny disposal income left for saving. With a tight budget, any extra is beyond their mean and classified as a “luxurious” item like buying life insurance.

Needless to say, it is advisable for such a young family to have affordable term life insurance that cost merely a daily high tea at a local café. What is your opinion you prefer pricey life insurance compared with a bedridden spouse or kid at home to maintain? Death is an instant relief, but the loved have undergone lifelong grief. So why be an irresponsible parent that might curse subsequently by those still alive struggling to meet day end need?

I lead a healthy lifestyle.

Nowadays, insurance agent always complaint is difficult to close a sale with the young and active people. The yuppie leads a healthy lifestyle to visit gym 5 days a week after work. Likewise, for the diet too, eats moderately due to health and utmost important tight budget. How far is that truth? We puzzle? Eat junk food like instantly noodle with enhanced favour, fry egg and soft drink instead of mineral water or fruit juice? Surprisingly, the diabetics and hypertension suffer gradually knocking at their door. Closely examined, the Malaysian demographic depicted young suffer from 30+, which was unknown in the last century. Honestly speaking, how many Malaysians have their yearly toughly medical checkup? Toast off to you, if you have a clean report, otherwise, you are an insurable or substandard risk with premium loading.

Cover for Money Printing MachineWhy buy Life Insurance, Prospect Distantly Avoid Plague 3

Unpredictable human being, in order to understand insurance, might take ages. Insured their movable assets like automobile, exclusive motorcycle, extensive renovation home, camera and household contents even pet for fury animal including the kernel, but no insurance for themselves that. Rampantly road accidents and armed robbery pray hard nothing would befall on them. Moreover, no one can predict when you are imminently sick or bedridden or walk on the clutches. Yet, there is no insurance to cover for the machine that prints money for you, that is your body. Gradually, overuse due to wear and tear a machinery breakdown, likewise, it is the same for your body. Consequently, a fatality occurs or lying motionlessly on the hospital bed.

Why buy Life Insurance, Prospect Distantly Avoid Plague

Negative Perceptions

Crowded coffee kiosk, two middle-aged customers sat in between a young man, an insurance agent.

“I lament you not buy any insurance as my neighbour’s son hospitalization for a week in a private hospital, the insurer denied his claim”

“Why” another probed further.

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“I do not know the reason for the rejection, initially the agent helped to claim, eventually the agent also unreachable “

“Yes, truly say, the agent and the insurer are the legal lesson conmen, promise you the sky, finally you get a barren hope.”

“Sorry, young man, I need to consult my spouse before making the decision from buying your investment linked proposal” Another elderly prospect consoled the dynamic agent.

“Yes, it is alright to reconsider about it, please don’t hesitate to call me for any doubt clarifications” the agent replies politely.

Thus one rejected claim would eventually rumour spreading fast like wildfire.

The truth reveals

Occasionally, the half-baked agent would request the assured to sign on the dotted line without filling the medical history. In order to get prompt approval, agent ticked all NO in the column even though assured mentioned has hypertension and on long-term medication. Whose fault? It is the Assured himself as he does not know anything when he blindly signed the dotted line on the proposal form. The former kleptocrat prime minister Najib Razak is a shining example.

Assured’s moral hazard

I did help to claim a case rejected by the insurer. Finally, to my dismay, I obtained a hospital report that assured did a kidney stone removal in a government hospital. When asked by the agent any operation done in the past. He negatively answered NO. Consequently, the insurer denied its liability for his claim on kidney dialysis.

Another case on hypertension question, nevertheless, assured answered negatively despite the fact of having daily oral medication. Eventually, the claim often denied by the insurer when claim stroke or kidney failure on the later stage.

Utmost good faith

Utmost good faith is one of 4 principles governed by the rule of the insurance law. Legal binding between the assured and insurer when entered into an insurance contract, the assured disclose all the relevant material fact to the prudent underwriter in determining to reject or accept the offer. Whether the assured know or unaware of the health condition, disclose to the insurer. So, sincere advice bares all the fact to the insurer to avoid the future burning issue on claim matter.

No Dependent

Generally, couldn’t care less is the altitude of most of the y generation. Chase after latest trendy iPhone gadget every six months. Moreover, priority on holiday, pay later for the credit card payment. Buy Life insurance? Why need it, I have no dependent is an impulsive reply? Single with no string attached, without any family commitment, no parent, no sibling, living on own world, why care! Having said that, what about your final funeral expense, consequently let the government take care of burial, or leave the corpse to decay on the road or hospital? Perhaps, perform a unique Tibetan “sky burial” let the eagle devour on your corpse. Why buy Life Insurance, Prospect Distantly Avoid Plague 4

Notwithstanding, if you have a grey hair retired government servant parent, isn’t a double pain for them. Losing one child, and the final expenses, ritual prayer and burial ground to pay for? Unfortunately, you confirmed total permanent disability, aren’t a pain in the neck hiring a nurse or long-term nursing for you. Conversely, put you in the nursing home, who pay for maintained expenses?

No Money

No money is a just a lame excuse to put off for the newbie’s advisor. Regardless single or a young married couple is a norm form of getting rid of intermediary. Or postponed, the chance is they procrastinate for a few more years. Luckily, the body has no red alerts for silence sickness. Meet a car accident, then you want to cover your car for a comprehensive term, do you think insurance company run on charity and accept your offer. Blatantly, you turn down. But the truth is, the majority of the insured have this kind weird idea.  I have stumbled across few incidents like this before during my 25 years in the insurance industry. Does insurer run on charity?

Time waits for no man

Gradually, we aged with the erosion of time, coupling with consumption of highly toxin junk food daily intakes. No wonder primary school going kid had undergone kidney dialysis at the public hospital. A normal phenomenon is our today society with a stressful lifestyle chasing after material gains. The insurance premium gradually rises accordingly to you age. Not only the higher premium pay but also lower the sum insured if we compared a lad aged 20 and another 30 years old adult. As we age, we are prone to illness due to the sluggish immune system. Even applies to term insurance for a 10 years gap band.

In brief, please buy insurance when you are in your youthful vigorous year to save cheaper premium with higher sum insured.

Jargon wording with length sentence Why buy Life Insurance, Prospect Distantly Avoid Plague 5

How many lawyers and insurance can consult and understand and interpreting sentence by sentence in the insurance policy? Nobody trained in all fields; therefore no one is an all-rounder in this world. Diligently consultant your agent or even bring the policy to the insurer for a full explanation. Closely examined the following point, you would face difficulty in handle a claim in the near future.

Exclusion Clause

In this column all the sickness or any circumstances relevant contradicted to the policy, the insurer would deny its liability. For instances, commit suicide within certain years or claim on pre-existing illness know to the insured. Please highlight to the assured when delivery the policy for acknowledgement of the receiving the policy. Do not conceal the fact, it is better to avoid short-term pain rather finger pointed how irresponsibility of the consultant.

Inception Date

The policy enforced with the date clearly printed out and the expired date of the policy. Commencing date is utmost important in the case of medical or 36 critical dreaded disease claims. Never overlook it. Frequently, assured would hospitalize for an illness, and bravely ignorance the waiting period. Subsequently, no entertainment of the claim, the assured would spread the rumour that insurer selling a scam policy, even though the default lies with assured. Sabotage the agent, branded you feckless advisor, and tarnished your name.

The schedule

In this schedule, your name and identity card number should spell accordingly to your national identity card. Correct the error immediately should you spot a mistake. Thereby, the insurer has leeway to deny your future claim. Do not give the underwriter a chance for your consumer rightfulness claim.

Highlight the type of coverage, whole life, endowment, term or investment link or purely medical card policy. Total permanent disability, 36 critical illness, waiver of premium due to dreaded disease or the payor. Any hospitalization benefit per day, woman disease and pregnancy admission specified according to your signed proposal form. Scan any deviation, informed the agent in a written form and ensure the insurer to pass endorsement accordingly. Finally, made a note of the sum insured in the schedule.

Stated the policy number in the policy for convenient correspondence with the insurer claim, when ledge a claim in the future or an endorsement. How much premium you have to pay? Assured need to warn adjusted premium during duration the whole validity of the cover, not to forget if the medical card guarantee renewal clearly stated.

Buy a peace of mind coverage

Splurge an exotic meal under the candlelight dinner or exorbitant family oversea excursion or perhaps the endless chasing the ever change the latest gadget every six months. Why not paused and think for your loved one when one day you lose your way home, getting a policy coverage that ensures all the financial constraint would not befall the ongoing family.

Your Thoughts

As usual, I would love to hear any thoughts or questions that you have in the comments section below.

Email me at
Why buy Life Insurance, Prospect Distantly Avoid Plague 6

Compensation for the death of insured under householder policy

Compensation for the death of insured under householder policy

Compensation for the death of insured under householder policy.

Not everyone buys householder insurance, after the mandatory homeowner insurance as a prerequisite for the bank house loan. Even more shocking, most insured will not have fire or homeowner after settling the housing loan. What more to say the householder insurance.

The question of why the owner does not purchase householder policy? isn’t the fault of the intermediary or the house owner. Let us find out.

Most agents after hearing the owner had a housing loan with the bank. The agent applies the hand brake. Why not cross-selling for the householder product to the insured, beside the car insurance?

Corporate Client

I had a corporate client called me one day,  ” Mr. Jamin, would you come over to my residence to discuss the householder policy?” Initially, I was a bit reluctant to affirm the yes answer.  After he gave a few calls me.Compensation for the death of insured under householder policy 7

” Mr. Robert, let us make on this Saturday evening at your home,” I confirmed it. After a long thought, I gave in to him, as his factory insured Marine open cover with a yearly sum insured valued more than US$ 80 million plus with plus or minus 5. Besides he also insured with me ten types of factory policies namely, fire, business interruption on machinery breakdown, Consequential loss, Money in transit and in premises, public liability, product liability, Group personal accident, employer benefit, burglary, and fidelity guarantee.

Flight Delay

On my arrival, the maid invited me into their mansion with an outdoor Olympic size swimming pool.

“Mr. Jamin, please be seated, my boss called her an hour ago the flight from a neighbor capital delay by 30 minutes. Would you like to a have a coffee or tea, sir?”  she continued ” If you are feeling a bit boring, I ask 3 gardeners to accompany around to see the flower and our own organic vegetable plot. Please make it into your home.”

The insured arrived home 15 minutes pasted

The couple said sorry profusely for the 30 minutes late.” The factory has an unexpected crisis crop out. We settle immediately but too late to catch the last flight home last night. All morning seats fully booked due to the weekend.”

The insured felt the previous agent did not have an in-depth knowledge of insurance matter. The agent had lumped all the content of 2 million dollars in one sentence.

Determine householder sum insured

Let us go from 3 mains halls, 2 dining room plus 12 bedrooms and a wine chiller room and a bar counter with a display showcase of various brandy. Kitchen and customised make pet kennel that keeping 12 guards and fury small dogs taking care one pet lover maid. She daily bath and brush their teeth with dog toothpaste.

The insured’s wife loves crystal light. She went to Austria to sort out 3 Swarovski crystals light. The 3 chandelier elegantly displayed at the 3 main halls Valued US$300 000.00.  It is not part of the fixed and fitting as the crystal can be stolen or removed easily. 3 pure Italy leather cool and comfortable sofa set valued US$ 150 000.00. Compensation for the death of insured under householder policy 8

The 2 teak wood antique dining table match with 10 seats valued for US$100 000.00. Two giant wall mirrors decorated with seashell by one the famed best Indonesian craftsman valued at US$25 000.00.

The French wine stocked in the chiller room valued for US$50 000.00.  The owner loves wine, often drink with 4 children during happy occasions and festive season.

He often entertained his close relative and friend at the bar counter. The display set neatly arranged row by row with antique brandy. A few bottles with a more than 100 years lifespan so valued at US$100 000.00. A customised completed set Italy coffee maker from grinding to the fresh aromatic coffee bean to the flow of a cup of self-home make Italy cuppa valued for US$30  000.00

A pet kernel specially builds for the 12 dogs, as dog help to reduced working stress for a jet traveler manufacturer like him. A monthly visit by a veteran doctor gives the dogs for the pet health and wellness. 2 guard dogs insured for US$5000.00 and those small toy dogs valued for US$10 000.00. The customised make order kernel valued for US$25 000 installed 4 units of air-conditioned.

The owner master bedroom and 4 children bedrooms with Myanmar teak wood valued for US$100 000.00. The 7 visitors ‘ bedroom with valued for US$10 000.00 each.

One of the sons who were previously a professional photographer attached to National Geography. He treated his camera set like his own life. Besides,  working as a wedding planner, he loves landscape and micro photography. He had left his footprint on all the seven continents. Insured his Canon set of the camera with its accessories for US$100 000.00 with All risk with theft by deception extension clause.

Compensation for the death of insured under householder policy 9

The designed kitchen cabinet and cutlery and cooking utensil and electrical appliances insured for US$100 000.00

Being a business person, his wife and two daughters often go with him to attend an important function. Lady often dresses to kill, is not an exception for them too. Their jewelry, necklace and diamond ring insured for US$300 000.00

Compensation for the death of insured under householder policy 10

Rolex watch is an everlasting asset; it appreciates its value over time. The filthy rich like to keep it as an investment, likewise is the same for Mr. Robert. The whole family goes on a winter holiday to Swiss Alps for ice-skating is an annual affair. Bit by bit the accumulation of watches so valued at US$300 000.00

The wall painting, laptop, TV, CCTV, karaoke, and the sound system, mobile handphone insured US$35 000.00 only. I added a full theft policy for the insured. The policy issued joint name stating the couple as the insured.

Morning Call

A beautiful Sunday morning, after having our family breakfast at a local cafe, I received a call. The panic maid called me informing, two robbers burgled the family. Mr. &  Mrs. Robert hospitalized in a private one. I rushed to meet them.

On seeing all the children was too there. I advised the elder son to make a police report.  The coma wife was still in the ICU. Mr. Robert narrated to me the occurrence of the event took place just before the youngest daughter arriving home with at 3.00 a.m.


I heard the dogs baked fiercely, excluding the 2 guard dogs. The servant quarter was quite a distance away. The alarm was silence too. The couple woke up by the dog barking.

Two young lads clad in helmet dashed into the main hall with two chisels.

“Money” they yelled at them.

“We don’t have much money at home, take whatsoever you want.” this statement might be had provoked one of the robbers. One briskly slain the man, he used his bare hand to protect him. The panic wife started to scream for help.

” Hel…….p, Hel………P.” she blasted out. The fresh blood oozed out from her stomach. The robber had stabbed her in the abdomen. One seeing the children rushed out to their parent rescue. The robber went off empty hand.

The robbers poisoned the guard dogs and tied up 7 servants respectively in their quarter.


Mrs. Robert breathed her last after 10 days in the ICU due to infection.  She was a diabetic. How much is the insurer liable for her death? Does the insurer pay the couple her medical expenses?

Compensation for the death of insured under householder policy.

What is the main point of consideration?

  • A forcible and visible of entry by the robbers burgled into your home.
  • The insurer pays for the death of the person if he or she died within 90 days caused by the thieves or fire.
  • If more than one person involved, prorate rate for compensation shall apply.
  • The corporation is not entitled to this benefit Unless a person is nominated for signing up the proposal form.

The liability for this benefit is one half of sum insured on Contents or whichever is less. The lesser amount shall apply.

Claim for Compensation of Death

Dear reader, let us crack our brain, how much is the compensation of the death in this case? Learning together is fun. I would really appreciate your comments in the comment box below. Don’t worry your email address should not be published in the comment box.

Answer for Compensation of Death benefits

What is the final total of this claim here? There are only two answers here. The full policy wording on Compensation for death is as below.

Compensation for Death

What is covered?

  • You are covered against fatal injury (death) occurring in the Private Dwelling House due to external or visible violence caused by thieves or by fire, if the death occurs within three (3) calendar months of such injury.
  • If there are more than one (1) named insured, we will be liable for a prorate proportion of the compensation.
  • For a Corporation, You must nominate a person or persons and lodge their name(s) with us.
  • The limit of liability of this benefit is the sum specified on the Schedule or one-half of the Total Sum Insured on Contents, whichever is lesser.

Your Thoughts

As usual, I would love to hear any thoughts or questions that you have in the comments section below.

Email me at

Claim Flood Damage to Home Insurance for Penang Flood of Decades

Claim Flood Damage to Home Insurance for Penang Flood of Decades

Claim Flood Damage to Home Insurance for Penang Flood of Decades. The recent Penang worst flood of the 3 decades have brought much misery to the ordinary Penangites. Couple with the high cost of living, it is a daunting task to cope with the average family with school going children.

But, it also broke the political and religion barrier giving the thump up. On the lighter side, the present government and the opposition leader come to hug other to share the utmost important burning issue to clean up the aftermath mess. Also, the recent debates on religion topic tarnished other faith, a small mosque was open catering for the other faith flood victim, regardless of religion and race.

Has the Mother Earth punished us for destroying the atmosphere? if Yes, we ought to face the music the consequences of global warming.  Have we not learning a lesson yet?   

The devastation from the worst flood of 3 decades far from over, but property owners in Penang are already facing the daunting task of rebuilding. The extraordinary continuous rainfall, in Penang and parts of Kedah on Nov 4 and 5 2017, The low-pressure area – a main cause of the flooding. It became a focal point for winds and high level of moisture resulting in continuous heavy rain and strong winds.

Claim Flood Damage to Home Insurance for Penang Flood of Decades

Beyond the human tragedy, the widespread flood damage caused by the flood and heavy storm serves as an important reminder to homeowners in Malaysia. Now it is time to wake to know how to protect your nest home by purchased flood extension coverage to mitigate future loss claim.

Your home is a sanctuary for your family. Do not save a penny resulting pay up a fortune, it is never too late to reexamine closely your home or fire insurance policy. It does not cost you an arm and leg to have the flood extension coverage for your house and content with one easy plan.

Claim Flood Home Insurance Damage to your Home in Penang

Let us study the key benefits covers.

  • It is wise to move to protect your home and its contents.
    The policy covers your building and contents against fire, lightning, flood and other natural disasters.
  • The insurer will replace your damaged items with new ones provided it is less than 5 years old.
  • It covers all the accidental damage to home contents.
    Protect your home contents including TV, laptop or others against accidental damage.
  • Option covers only home contents. Customize make to cover just your precious belongings.
  • No one loves to see wastage of water oozing like a fountain via bursting of water tanks or pipes, thus has the coverage for the broken pipes or water tank. The brokerage causing damages to building and contents can revoke this clause to compensate the loss claim.
  • The policy protects your personal belongings worldwide.
    There is 24/7 protection for your personal belongings such as jewelry and watches, camera anywhere in the world.

Exclusion clause the policy does not cover.

1. Purchased landslide extension to prevent damage to building due to a landslide.
2. Extensive damage caused by termites.
3. Jewelry in excess of 1/3 of the total insured amount.

What is the coverage?

Essential systems in the home include electrical and plumbing systems, furnaces, water heaters, central air conditioners, It also includes cisterns and the water in them, solar energy equipment, water tanks, and pumps.

Appliances such as refrigerators and built-in appliances like dishwashers, washing machines, dryers are covered. No covers for the food inside refrigerators.

Carpeting and window treatments, permanently installed carpeting over an unfinished floor or any other kinds of carpets over wooden floors, your policy should cover them. Also, include window blinds and curtains.

Permanently installed paneling, wallboard, bookcases, and cabinets, replace your cabinets, pay only for the damages one. The ruined cabinets along with the undamaged you might have trouble getting cabinets that match the older ones.
Foundation walls, anchorage systems, and staircases attached to the building. There is an exclusion for “loss caused directly by earth movement even if the earth movement caused it to flood.”

A detached garage can be insured up to 10 percent of your house building sum insured toward your garage. For example, the sum insured for the whole building is $1 000 000.00 then the garage is $100 000.00. This amount will minus from the total sum insured. Thus the final sum insured for building is $900 000.00 and outbuilding garage is $100,000.00 = $1 000 000.00

Personal property includes clothing, furniture, and electronic equipment—covers provided that not stored in the basement.

Certain valuables cover items such as original artwork pay according to the agreed value subject to obtain prior approval from the underwriter with the authentic expert report.

Other coverage, some events cover even if they’re not strictly floods, like groundwater seepage and mudslides. Includes a neighbor’s above-ground swimming pool collapsing.  Water flows into your home or a water main break that damages your home and at least one other in your neighborhood. However, damage caused by a sewer backup only covered if it’s a direct result of flooding.

The Penang worst flood of the 3 decades, you could see the uprooted tree crashing the car parking along the roadside and on the car porch. Stagnant with muddy water, snake slippery through the house making a nest, a completed wash over is an urgent task for the occupant. All those unattended houses, the expensive items is the prime target – a riot by the drug addict when the water subsided. Isn’t a nightmare?

How shall we protect ourselves, instead of waiting for the donor or government handout which is insufficient and takes an age to receive? Prevention is the better cure, help ourselves. No point in crying the split milk later.!

The following extension clauses highly recommend for the householder or house owner policy when entering a contract of insurance.

Flood extension with a rating of 0.086%, you need to pay an additional premium of $860.00 for the sum insured of $1 000 000.00. The insurer shall compensate your flood damage to house structure or home contents.

Flood, means:

The overflowing of water or deviate from its normal path either due to heavy downpour over a long duration, storm or man make the disaster such as deforestation.

Inundation from the public main supply or any flash flood water accumulation hails from outside the insured building.

Exclude the loss or damage caused by subsidence or landslip.

To complement the flood cover, the insured to add the subsidence or landslip extension clause. After the heavy convention rainfall, the soil turns soften especially with the root of acts the fastener of the loose soil. Condominiums collapsed like a matchbox.  The Malaysian Highland tower is a good example due to subsidence and landslip.

Subsidence and landslip cover rating 0.081% for the standard cover. By paying an additional premium of $810.00 for the clause with sum insured of $ 1 000 000.00, you would have the peace of mind in the event of loss of damage to your sweet home.

The standard cover exclusion clause: Loss or damage

  1. The Swimming pools, terraces, patios, drives footpaths, walls, and gates or fences unless the building, its outbuildings or garages damaged by the same cause and at the same time.
  2. The movement of solid floor slabs unless the foundation beneath the external walls of the Buildings damaged by the same cause and simultaneously
  3. Occur or in consequence of coastal and river erosion. Demolish or alter structure or repair, defective design, and poor construct foundations.
  4. No liability for the insurer in respect of each and every loss, 5% of the total sum insured or $25 000.00 whichever is the lower, after applying the law of average.

However, delete the standard cover by paying an additional premium of 25% loading for the outbuilding like fence, gate and walking path, dog kernel and parking porch and swimming pool costs $500 000.00. The additional premium for the sum insured of $500 000.00 would be ($500 000 x 0.081% + 25% loading to delete the item 1) $506.25. Thus we derive the final total premium for the extension peril would be ($810.00 + 506.25) = $1 316.25

Damage by Falling Trees or Branches and Objects

A misfortunate during the recent Penang the worst flood of the 3 decades, the victim’s heart bleeding with blood found out not only the house been submerged with water, but also the falling branches and tree fall on the house the car parked in the car porch causing severe damage. Generally speaking,  a normal to see an insured claim for the loss or damage only realize that agent did not carry out the professional duty.

Wise move to cover the building and your car with such peril. By having said that, although it is a painful lesson learned, nevertheless, one can insure this peril during the next renewal with a rating of 0.01%.  Pay $100.00 for your property  with a sum insured of $1 000 000.00

This Policy includes loss or damage to the property or to walls, gates, and fences directly damage due to falling trees or branches. The insured shall bear the $250.00 for each and any loss or damage. Don’t waste to claim when the claim falls below $250.00. If the claim is $ 3 000.00, the insurer pays you $2 750.00 the full and final settlement of the claim. You are the insurer for the first $250.00

Claim Flood Damage to Home Insurance for Penang Flood of Decades 11

Removal of the debris (with the separated sum insured)

After the flood water had receded, what a remain was a messy muddy floor. It is an eyesore to see floor carpet with mud, filthy muddy stagnant water. Life has to go on. Has your ever think the cleaning process when hired worker to clean? What is the cost of this trying time? The cleaning company would demand an exorbitant fee for the laborious task which is in great demand. Do you check your policy for the removal of debris clause?

The additional sum insured can incorporate forming part of the sum insured with a separated sum. Be specific it depends on the size of the building and number of the floor. It can cost easily at $5 000.00 upward.

The insurer pays the insured for the costs and expenses necessarily incurred with the prior approval from insurance company
(a) removal of debris
(b) dismantling and/or demolishing
(c) shoring up or propping of the portion of property damaged or destroyed fire or by any other peril hereby insured
against. (Items (b) and (c) above deemed to delete when neither Buildings nor machinery is

If the insured does not has a separated sum insured for the removal of debris, the insurer will bear 10% liability for the total sum insured. In the case of the Penang flood, the insured can claim up to $100,000 for cleaning up the mess out the sum insured of $1 000 000.00 provided flood extension clause printed in the policy.
Lazada MalaysiaClaim Flood Damage to Home Insurance for Penang Flood of Decades 12

Rent clause – not to overlook.

a) Applicable to owner non-occupier to the premise, if the building is unfit for occupation due fire or other insured peril, the owner for the rental loss shall not exceed the total sum insured. Let say a monthly rental $2 000.00, loss of rental for 6 months can recover  from insurer of $12 000.00

b) Applicable to owner occupier the premises, if the Penang flood destroyed the building, the insured need to find another alternative home for 1 year before a new home ready to move in. Rental of the similar standard home cost $1000 per month, 12 months means the underwriter will pay $12 000.00 to insured.

How to claim flood damage to home insurance.

  • Stay claim, the insured shall make a police report first.
  • Immediately inform the agent or insurer via telephone follow with an email to them. Any unreasonable delays may prejudice your case. If the invisible agent is not available during the critical moment which quite a true fact in Malaysia, go straight to report to insurer directly.
  • Don’t ever seek or consult the coffee shop fair-weather friend for an opinion. Don’t waste your hard earn money to hire a lawyer, as it is a straightforward case, not a liability whereby need a court hearing.
  • Liaise with the independent adjuster arrange by the insurer, let them has a thorough inspection of the whole scene, ask for their approval for any minor repair to mitigate further loss.
  • Study closely the whole policy with the insurance agent for any exclusion and excess clause.  Any doubts please refer to the insurer’s advice.
  • Take a video clip of the damaged item for the adjuster inspection. Keep all the minor repair receipt. The video clip is utmost important for the claim dispute.
  • Duly completed sign original claim form with the repair invoice to the insurer and copy to the adjuster to expedite the claim. Ask for the acknowledgment of receiving the entire claim document to avoid undue delay.
  • Don’t sign any counteroffer by the insurer unless you fully satisfied with the final claim. You can read more on the How to claim Hurricane damage to your property

Typhoon survival tips before and aftermath

Typhoon survival tips before and aftermath

Typhoon survival tips before and aftermath

Florida braced the impact of Hurricane Irma destroyed of million homes, gigantic economic lost. The economic cost of Hurricane Irma could rise as high as $300bn the storm lashes Florida, damaging homes, businesses and key crops including orange groves.

The recent masses 6.3 million evacuations of Florida before the imminence of the category 5 of Hurricane Irma is a lesson learned by the Trump admiration about the global warming. The speed of 150 Km per hour sweep away houses, vehicle along its path uproot trees, resulting in a million lost their home, no supply of electricity and clean water.

The storm has already unsettled the monetary markets, sending insurance shares falling. An analyst from a stockbroker company positioned the general economic value at $300bn, with insurance firms probably at the hook for among $100bn and $150bn while the smooth-up operation gets underway.

The bulk of Irma’s claims are probably for wind damage. With a predicted 300 000 claims for wind damage and one 150 000 claims for flood damage, insurance claims for Irma expected to obtain extra than $40 billion. However, insurers handling Irma can also attempt to wriggle out of protecting houses with each wind and water damage through bizarre “anti-concurrent-causation” clauses – that is, clauses that put off insurance for wind damage if an “uninsured flood” takes place on the equal. Those egregious clauses are not possible for consumers to understand, as the general public cannot consider insurers could sell them a policy with wind coverage that could disappear playing with insurance technical jargon words.

What to do with a Typhoon imminent?

Typhoon survival tips before and aftermath

Before the Typhoon:

  • Prepare an adequate storage supply of meals and drinking water.
  • It is vital to store at the least 2 weeks of canned food and mineral water.
  • Preserve flashlights, candles and battery-powered radios within easy reach.
  • Examine your own home and restore its unstable parts
  • Harvest the mature plants or crops.
  • Keep domesticated animals in a safety ground.
  • For the fisherman, anchor boats in a sheltered area.
  • Have you needed to evacuate, carry clothing, blankets, whistles, first aid package, candles/flashlight, battery-powered radio, meals, and some cash?

At some point of the storm:

  • Stay indoors.
  • Prepare constantly having the latest weather forecast result from radio or social media.
  • If the drinking water is not suitable for human consumption, advise boiling the water at least 20 minutes before drinking.
  • Covers container of water with a lid.
  • Saves some lighted candles or fuel lamps.
  • Do not go through floodwaters to avoid being electrocuted and contracting illnesses.
  • If there is a need to move to an evacuation center, follow those instructions.
  • Evacuate calmly.Close the home windows and turn off the main electricity switch.
  • Put essential home equipment and belongings on a high floor.
    Keep away from the fast swift following water.
  • Make a communication plan with family
  • Ensure a proper meeting place if the smartphone is not working.
  • Note down the important emergency number.

After the typhoon:

  • If typhoon destroys your private home, it is advisable to stay elsewhere.
  • Watch out for snakes which can have entered your house
    Return home only after authorities have given the green light announcing the if is safe for the dwelling.
  • Be careful with the wires immersed in water that can cause electrocution
  • Make a report of broken electrical cables and fallen posts to the concerned authority.
  • Do not allow the water stagnant in tires, cans or pots to avoid a breeding ground for mosquito.
  • Remember, preparedness is the key. Be smart and stay alert.

Can I insure my house against typhoon and flood?

Yes, 1st you need to have a fire or home insurance, not only your house, but also the contents, including your personal effect. You need to fork out the extra premium with these 2 extension clauses.

What does Typhoon Insurance cover?

Basically, typhoon insurance covers only wind damage. Loss or damage caused by rain, regardless whether driven by wind. The damage covered only the actual damage to roof or walls by the direct force of a typhoon. The insurer liable for loss or damage to the building or insured property whereby the rain entering the building through openings in the roof or walls caused by the typhoon. No cover for the water damage due to the opening of the of doors, windows, transoms or roof lights being left open, in spite of the existence or presence of a typhoon.

Flood Insurance

The flood insurance does not cover are loss or damage caused directly or indirectly by landslide, subsidence, explosion whether incidental to flood or not, theft whether occurring during or after a flood. The following do not constitute as a flood: overflowing, bursting or leakage of water tanks, pipes, gutters, downpipes, and public water supply mains, backing up of sewers or drains.

Motorcar damage insurance

The standard 1st party motor Car policy does not cover “any accident, loss, damage, or liability directly or indirectly, proximately or remotely occasioned by caused by any traceable of a flood, typhoon, and hurricane.” Some insurers are willing to cover these perils at an additional premium. Other rejects it even though the insured willing to pay the extra premium. It is mainly due to reinsurance or co-insurance treaty.

Personal accident policy usually does not cover against a tidal wave.

Some insurers cover you against typhoon only if your house made of concrete under galvanized iron roof, or against flood only if your house is built on high ground. It is best to let your insurance agent or broker negotiate with their principal.

Typhoon survival tips before and aftermath 13Typhoon survival tips before and aftermath 14

How to Claim Hurriance Damage to Your Property

How to Claim Hurriance Damage to Your Property

How to claim Hurriance damage to your property, if you have sustained a heavy loss or damage.

Damage from Hurricane Irma

If a storm damages your property, It is the wise choice you to report your claim directly to your insurer. They will have a claims agents accessible 24 hours a day. Note down the contact number before the storm. You might not connect to either internet or mobile phone access after the storm.

  • The Insurer will assign an adjuster to get in touch with you at the number you gave on your claim report, so make sure to give an insurer to contact you.
  • The insurer typically sends the adjuster priority to extremely damaged properties.
  • If your home or business is uninhabitable or you move elsewhere briefly, make certain to tell the insurer where you can reachable.

In the event that you sustain a minor damaged, please try to remain tolerant. When the adjuster contacted you, please take note the vital information like their hame, office contact number and the claim report number.  Likewise, ask the adjuster what the next course of action you should take it and when he/she will be back in contact with you. Ask the agent any inquiries you may have about your claim. How to Claim Hurriance Damage to Your Property 15

Make Temporary Repairs. Take photographs or video recordings.

  • If you damaged home or business, please make immediate repairs to mitigate the loss and to protect your safety.
  • Keep all your receipts, the insurer will request them at a later date.
  • Keep damaged items for the adjuster to examine later. Try not to dispose of damaged goods.
  • Temporarily repairs like tarping your rooftop, remove a tree from your home, and repair broken windows.
  • Take photographs as well as recordings of the damaged,  including recording your damaged personal items. This will expedite your claim.

Try not to make Permanent Repairs

Try not to make permanent repairs to your home until your adjuster has examined your damaged. If you have doubt, please call the insurer.

Begin setting up a Personal Property Inventory

  • Try not to discard the damaged items until the adjuster has seen them, especially premium good. The damaged personal belongings, your adjuster will ask you for a personal property inventory. This is a listing of the damaged items and their value(s)
  • We recommend you achieve this on a room-by-room basis and list it down with detail description. List the “Replacement Cost” of everything and its genuine cash value. Replacement cost is the thing that it would cost today to substitute an item with the resemblance. Genuine Cash Value the item is truly worth subsequent to deducting for wear and tear.
  • Enclose any documentation you can (receipts, photographs,
    canceled the checkbook, financial records, guarantee booklets, and so forth.)

Your adjuster may have particular forms they will give you.

Be Cautious of repair scam

  • Resist the temptation to sign up with the repair contractor that appears at your door. You should not sign repair contract or assignment of benefits. This is giving away your right to the contractor and may affect the claim later.This could cause lost control the cash paid by the insurer. Respectable repair contractor won’t expect you to sign an agreement that included the assign of benefits.
  • The assignments of Benefits scams are the main source of rising insurance premium, and fraud sees hurricane aftermath a golden chance to prey on desperate homeowners.We suggest that you call your insurer or adjuster to report the damaged claim and decide the next ideal approach.

Emergency Relief Centre

A storm severely damaged your home, please liaise the local authority for next nearest emergency relief center.

Sign up for online policy access

Nowadays, it is an e information, all insurers have the online policy access, it is vital to sign up this offering. Tracking your claim status reduced your stress after suffering a tragedy.

Talk about claim with the adjuster

The insurer expects a huge amount of claims. Please patient, it is normal for an insurer dealing priority on the extremely damaged cases.

Frequent Asked Questions

  1. How does a Hurricane deductible function?

Irma is presently a tropical storm, and a storm deductible will apply to any damage to your home or business asset. The Hurricane deductible only applies if a hurricane watch or warning issues in any part of an affected area and ends 72 hours from the time the warning or watch terminates.

With a hurricane deductible, the homeowner is liable for this deductible. The covered damage that exceeds your deductible will pay by the insurer. Generally, hurricane deductibles range from 2% to 10% of the insured value of the home.  So, if your home insures for $400,000 with a 2% hurricane deductible, your hurricane deductible is $8,000.

This is an annual deductible, so if you have 2 different hurricane losses in one calendar year and you already exceeded your deductible during the 1st hurricane, you will not have to pay a deductible during the rest of the policy period.

2. Will my car insurance cover damage to my car?

If you purchased a comprehensive policy with flood extension, both hurricane damage and flooding cover your car your car insurance company. A comprehensive deductible will apply.

3. Will my homeowner’s policy cover flood damage?

A homeowners policy covers the wind and hurricane damage if it inclusive in the policy. If the blown roof and then the rain pours into the building that would be covered by the wind portion of your policy.

Rising groundwater from a storm surge or hurricane considers a flood. Flood damage is not covered by standard homeowners or business insurance policy unless you have the flood extension clause in your policy.a hurricane in most the commonwealth nations, unlike the USA having 2 separate coverages.

4. Will my homeowner’s policy cover trees down?

Most homeowners and business packages provide for removal of trees or branches that have fallen on your structures. The insurer doesn’t pay for removal of trees or debris that blew into your or fell in your yard without damaging anything.

5. My house is uninhabitable. What do I do?

To begin with, let us say we know this is hard and trying time while you are homeless. Please call the insurer for the arrangement for the temporary shelter in a decent home befits for your current damage lifestyle home.

Loss of Use: This is to reimburse you for extra expenses and temporary housing incur. Generally, the temporary housing amount based on the fair rental value of your home or apartment during your displacement period. Additional expenses include expenses that you would not normally incur, such as additional petrol mileage, electricity consumption, generators, electrical, phone or food expenses over and above your usual costs. It is not the obligation for the insurer to pay you the limit upfront. You must incur the extra expense and provide proof of loss in form of receipts or invoices for reimbursement from them.

Need an attorney to claim for hurricane damage

Unfortunately, insurer and their adjusters are not in the business of paying out claims. Generally, the insurer’s trained adjuster attempts to negotiate the minimum of claim or deny it outright based the exclusion in the policy. You might not aware of this, but for the adjuster, this process starts when you phone to file a claim. Understandably, you might suffer from stress or tension due to damages or losses caused by typhoon Irma, however, you ought to remember the fact that every question you answer could be an element in determining if a claim is successful. The insurer doesn’t care in case you stress or confused when you informed, they’ll blissfully use it against you later.

While you honestly in reporting a loss to your insurance company, you have the right under the Federal Constitutions. The adjuster is a trained expert; you aren’t. A house owner without the full understanding of the policy coverage will at the mercy of the insurer when claiming a loss. It is sensible to consult your lawyer to prevent a claim being denied or short payment. Once the damage was done, it is more difficult for a lawyer which you hired after your claim denied to effectively recovering for you. Keep in mind; it is compulsory for all insurers to provide you with an updated copy of your insurance policy inclusive of all amendments and endorsements.

As said above, do not discuss your loss till you’re absolutely prepared to do so. This means having a complete copy of your policy in front of you so that you are aware the coverage. Understand it before you speak your claim with your insurer.

If you do decide to contact your insurer, be sure you take the following steps before contacting your insurance company. Remember there is no rush and normally, you have few weeks to file a claim after a loss which includes Hurricane Irma.

How to Claim Hurriance Damage to Your Property


  • Read and understand your entire homeowner’s insurance policy together with any endorsements and amendments.

Do not record over the smartphone. Do not comply with offer a recorded or sworn declaration over the phone. Ask to offer one in person or in writing. Don’t forget to consult with an attorney first. PUBLIC ADJUSTERS aren’t legal professionals.

      • Communicate in writing if you wish. Try to make certain most of your conversation is in writing. When you have a telephone conversation and follow it up with an email or a fax.
      • List down and everything lost or damaged. Create a list of all damaged belongings such as any personal items. Please ensure to consist of the brand name, model, and accurate description of all claimed items. Include all items irrespective of how small.
      • Document all damages. Don’t only photograph the damage, but additionally, make sure every picture is both time-stamped or logged with the date and time when it was taken.
      • Witnesses are crucial. List down everyone who witnessed the losses and may testify to how the losses came about. This includes the names of any contractors or different employees who do the repairs.
      • Keep a logbook of contact with your insurance company. Take down the first and last name of everyone you speak to from your insurance company, the date you spoke to them, and what you spoke to them about.
      • Accumulate your past information. If possible take all records any previous maintenance or inspections of your private home. This will make it greater tough for the insurer to assert the preexisting or unrelated damage.

Your Thoughts

As usual, I would love to hear any thoughts or questions that you have in the comments section below.

Email me at

How to Claim Hurriance Damage to Your Property 16

Determine the Sum Insured for Loss of Profit Insurance

Determine the Sum Insured for Loss of Profit Insurance

How to Determine the Sum Insured for Loss of Profit Insurance?

Loss of Profit insurance is a complex field sending a spine- chilling signal to even veteran insurance broker, but when mastering the subject, another income from cross-selling. Providing an insight into this cover explains, in plain layman English, to derive the sum insured.

The accountant terms on gross profit are entirely different from the insurance point of view as the definition relates to Income minus Expenses during shut down period.

Two ways on calculates the Loss of profit insurance either on an Additions or on a Difference basis.


The Additions basis insure by adding the Net Profit and all the Standing Charges.
* The total Net Profit (before deduction of Income Tax) generated annually for running a year of business without interruption.
* Standing Charges are those expenses incur regardless whether the business is in operation, e.g. rent, salaries, hire purchases, lease agreement payments, etc.


The Difference basis deducts those working expenses not required to cover from the Turnover.

* Turnover is the total sales amount received for the business activity undertaken.

* Uninsured Working Expenses are the total of all those eliminated expenses not required any business termination, e.g. purchases, commissions, packaging, outsourcing, contract workers, part-time worker, transport.

Insurance Gross Profit

We establish the insurance Gross Profit figure based on

Net Profit before tax known called it Net Profit before Tax
Standing Charge termed as fixed costs.

Uninsured Working Expenses termed as variable expenses.
Turnover called “income” or “sales” or “revenue”.

Notice that the Turnover of the business comprises Net Profit before Tax + Fixed and Variable costs or expenses.

Rate of Gross Profit

The Loss of profit policy wording is the only wording that actually guides insured on how to calculate a claim and therefore assists in establishing a sum insured. The claim settlement requires that the Rate of Gross Profit applies to the shortfall in Turnover expected by looking backward and adding any future enhanced trends. Briefly to say that businesses rarely change on a successful duplicated operating system to generate further turnover and any supplement to keep up with the inflation upward trends.

However, copying last year operating system means that all the ratios against Turnover will probably remain stable – so the more sales volume means the more increase the operation cost. So a 15% increase in turnover correspondingly 15% increase in the working cost. (This is a minimum percentage to keep ahead of inflation) If not, then the business has not copied last year’s system 100% and the broker needs to prove the reason.

The Rate of Gross Profit is the percentage ratio of the insurance Gross Profit to the Turnover. In other words:

Rate of Gross Profit =Turnover x 100

The broker assists the insured by taking the last financial report (Balance Sheet and profit and loss account and stock) figures for fixed costs, variable costs and NPBT and calculates the Gross Profit, as per the insurance definition. When both agreed on the method to establish the rate of gross profit and will use for future reference provided the rate is correct. Since all business increases their Turnover every year by more than the inflation rate, the client must agree to their expected annual Turnover increase percentage.

So the insured now has a Rate of Gross Profit and an annual expected Turnover increase rate.

Next, the insured needs to calculate their expected Turnover for the year after the expiry of the next period of insurance. This means that the insured looking two years beyond for projection. This turnover applies the Rate of Gross Profit and that is the expected Gross Profit.

Adding the VAT to this expected rate of gross profit and round to the nearest $100.00, inflates twice the figures, but the premium only charged on 75% of this Gross Profit sum insured.

Example figures

Fixed Charges= $5 million
Variable Expenses= $4 million
NPBT= $500 000.00

Turnover 31/12/2016= $10 million
Insurance Gross Profit =$6 million
Rate of Gross Profit =60%
Turnover increased =15%

Period of Insurance 01/01/2017 to 31/12/2017
Expected Turnover =$11.5 million

Year after expiry of policy 01/01/2018 to 31/12/2018
Expected Turnover= $13 225 000.00
Thus Insurance Gross Profit= $13 225 000.00 x 60% (Rate of Gross Profit)
Gross Profit Sum Insured= $7 935 000.00
Plus 6 % Vat ($7 935 000.00 + 476 100.00) = $8 411 100.00
The sum insured calculates on 75% of $8 411 100.00 =$6 308 325.00

It is our broker’s duty to aid the insured on deriving a reasonable sum insured. The insured’s understanding on the calculation is crucial to avoid future dispute when a claim incurs. However, to safely guide the broker from the insured sued the former for professional indemnity. Advisable requesting the insured signs a document stating that they agree with the method used and that the figure is acceptable.

End of Policy Year Adjustment

If the client achieves marginal  15% increase in their Turnover, during the insured period, adjustments require, we arrive at the following figures:

Turnover= $11 500 000.00

Gross Profit =$6 900 000.00 (60% of Turnover)

Plus 6 % VAT ($6 900 000 x 6%) =$7 314 000.00

Initial sum insured of  $6 308 325.00 but their real Gross Profit was $7 314 000.00, the sum insured difference is $1 005 675.00, a lesser premium collected. The insured paid a 75% as a deposit premium, providing a correct calculation; the insured had 100% coverage with a 75% of the paid premium.

If the premium rate was 0.10% the client paid a deposit premium of $6308.33 plus an adjustment premium of $ 1 005.68, which totals $7 314.01, instead of a full premium of $8 411.10.

A Mistake did by broker Howard

The broker utmost responsibility duty to decide the insured NPBT figure, Howard does not include NPBT in their coverage. Consequently, wrongly calculate the sum insured on Consequential Loss Policy, arriving at a Rate of Gross Profit of 56.24% which converts into a sum insured of $5 400 000 +6% VAT = $5 724 000.00. Not to forget the deposit premium and end of policy year adjustment for this coverage.

Bearing in mind

Loss of profit insurance works either all the fixed cost items for the Additions basis only or all the variable charges for the Difference basis only.

Not using the above 2 methods, this leads to either the law of average applies or the insurer not agreeing with the client’s calculation of their claim. Also, the  Loss adjusters find in a daunting task in finalizing a claim if excluded the charges.

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Determine the Sum Insured for Loss of Profit Insurance 17

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Loss of Profit Insurance What and why are the coverage?

Loss of Profit Insurance What and why are the coverage?

Loss of Profit Insurance What and why are the coverage?

The Loss of Profits policy covers the monetary loss occurring from a break in a business activity arising due to the physical loss of property by an event covered by insurance.

What is the coverage?

In general term, the Policy broadly covers loss of Gross Profit for business interruption, consequent upon Material Damage to property due to Fire or any other insured peril under the Standard Fire and Special Perils Policy.
It also covers standing charges which continue incurring during the interruption thereby increasing the working cost necessarily and reasonably incurred to support the business to its formal activity. Consequently, therefore, that loss under net profit and standing charges can avoid or mitigate.

It also covers standing charges which continue incurring during the interruption thereby increasing the working cost necessarily and reasonably incurred to support the business to its formal activity. Consequently, therefore, that loss under net profit and standing charges can avoid or mitigate.

An eye-opening for the bewilderment insured during the closed-door discussion between me, and insured’s finance controller.

Why need to cover the loss of profit insurance?

“Boss, by having fire insurance is not a perfect shield for your business empire, a complimentary policy utmost important for your factory with a workforce of closed a thousand. Let me introduce the Loss of Profit Insurance” I announced.

“What is that? Such policy exists?” they questioned me with their disbelief eye.

” Your factory premises and machinery all under financed with a local bank, a short-circuit would curtail the production flow, subsequently a reduction turnover, How shall you keep the monthly installment repayment to the bank in addition to ongoing costs like staff salary utility bills, lease payments or advertising. The board of Director and the top management lives on fresh air and the sunshine with dwindling in bank cash flow?

The owner and the finance controller trying to fob off me, “We really don’t need this kind of policy.”

Increase working cost

“Well, having some oversea buyers with the confirmed letter of credit at sight, can you offend your buyer by postponed shipment date? If so, how many times, is there no late penalty and your goodwill and credit-worthiness could restore when it tarnished. This policy would solve this temporary relocation cost and the rental cost to compile with the shipment date. Pouring salt on the wound, some supplier would inflate your buying cost price besides the logistics cost. Your creditor adds fuel to fire, giving a shorter credit payment term.  The maxim goes, misfortune always knock twice”

“The bank would close their umbrella during this trying time, and seek for a reduction of capital-outlay to your factory when the building blaze to the ground, coupling with these 2 events, Can you cope with  it?”

The following clauses are the extension of the Standard Policy for Loss of Profit Insurance.

Free of Charge Clauses:-

  • Denial of Access/adjoining Premises risk.
  • Alternative Indices.
  • Waiver of Material damage proviso.
  • Payment of account – cash call*.
  • Premium Payment.
Payment Clauses.
  1. Supplier’s and Customer’s premises.
  2. Upward adjustment Clauses 25%.
  3. Failure of supply from public utilities at least 48 hours.
  4. Accumulation of Stock.
  5. Department Clauses.
  6. New Business for 1st year only.
  7. Salvage sales.

*Payment of account: The beauty of this policy when an insured peril occurs, the insured can evoke by asking insurer for advanced payment at least 50% of the sum insured within 14 days’ notice without incurring any interest charges prior to finalize a report provided that it is a genuine claim.

How to derive adequate sum insured for Loss of profit Insurance will roll out soon?

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Loss of Profit Insurance What and why are the coverage? 19
Loss of Profit Insurance What and why are the coverage? 20Loss of Profit Insurance What and why are the coverage? 21
Loss of Profit Insurance What and why are the coverage? 22