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 1

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
insured)

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 2

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