Frequent Storms Batter Malaysia Homes

Frequent storms battered Malaysian homes on March 13, 2017, from 5 pm to 6 pm, causing significant damage. Fallen tree branches damaged several cars, and some houses lost their roofs, including the emergency room of Kulai Hospital.

How often do storms lash Malaysian homes?

Storms in Malaysia can occur quite frequently, especially during the monsoon seasons. The **Northeast Monsoon** (November to March) often brings heavy rain and storms to the east coast of Peninsular Malaysia, as well as parts of Sabah and Sarawak. The **Southwest Monsoon** (May to September) is relatively drier, but thunderstorms are still common during the transition periods between monsoons.

It’s important to be prepared and ensure your home and belongings are adequately insured to handle these frequent weather events.

This incident reminded me of a 2015 storm that badly damaged 266 homes. Politicians offered donations, but an RM 1,000 donation wasn’t enough to repair the damage.

On the scene, I heard feedback:

“Luckily, we got a donation from the MP; otherwise, I don’t know what we would have done,” someone in the crowd said.

“Can we claim insurance?” another asked.

“Fat chance, unless the fire burns the house,” someone replied.

“I thought I didn’t need fire insurance after paying off my housing loan,” one person said.

“Why not get homeowner’s insurance?” an agent suggested.

“This time, I’ll spend a fortune repairing my house. My kitchen roof vanished, and water damaged my appliances,” one homeowner lamented.

“You’re lucky; my entire roof blew off, and water drenched my house. An uprooted tree damaged my car,” another added.

After the storm, demand for handymen surged. Repair costs skyrocketed, and work was on a cash basis.

One homeowner discovered the insurer only paid part of the claim, even with a sum insured of RM 150,000 due to the average clause. The calculation was RM 150,000/300,000 x RM 50,000 = RM 25,000.

A woman with a low-cost house, insured for RM 50,000 instead of RM 22,000, received over RM 8,000 for roof damage and rewiring costs. She thanked me for advising her not to save money on insurance. A few hundred dollars covered a month’s rent while her house was under extensive repair.

What is average?

When a sum insured is subject to average, it means that if at the time of damage, the sum insured is less than the total value of the property, you will:

(a) be responsible for the difference
(b) bear a proportionate share of the loss

For example, if a house’s current value is RM 300,000 but the sum insured is only RM 150,000, the insurer will only pay a portion of the claim. If the damage amounts to RM 50,000, the payout calculation would be:

RM 150,000 / RM 300,000 x RM 50,000 = RM 25,000

Thus, the insurer pays RM 25,000, and the policyholder bears the rest. This principle, known as the Average Clause, ensures that the claim amount is limited to the proportion of the sum insured relative to the property’s full value.

Frequent Storms Batter Malaysia Homes

Most Malaysians don’t buy fire insurance after settling their housing loan. However, a storm can still damage your home even with a fully paid loan. It’s a tragic mistake if the house is destroyed. Do you have enough savings to rebuild your home on vacant land or live in a shabby hut while growing vegetables? Storms in Malaysia can occur frequently, so it’s crucial to stay protected.

Taking precautions and maintaining insurance coverage ensures you can handle unexpected damages and repairs without financial strain. Buying comprehensive insurance is a wise choice for safeguarding your home and future.

To make matters worse, most Malaysians do not buy home content insurance. When a TV or computer is damaged during a lightning strike or sudden power surge, homeowners are left to bear the full cost of repairs or replacements.

It’s essential to consider comprehensive home content insurance, which can cover such unexpected damages. This insurance ensures that your valuable electronics and other home items are protected, providing peace of mind and financial security in case of sudden events.

Investing in home content insurance is a practical step to safeguard against unforeseen losses and protect your belongings.

Staying with relatives or close friends for days or months after your home is damaged can lead to conflicts and strained relationships. It’s a challenging situation that can affect everyone involved.

Including a rent clause in your insurance policy ensures you have a temporary place to stay, reducing the stress and potential conflicts that come with relying on others for long-term accommodation. This small addition to your policy can make a significant difference in maintaining peace and comfort during difficult times.

Investing in comprehensive insurance with a rent clause is a wise choice to prevent further hardship and preserve important relationships.

What is a rental clause?

A rental clause in insurance provides coverage for temporary accommodation expenses if your home is uninhabitable due to damage from events like storms or fires. It ensures you have a place to stay while repairs are being made.

The rental clause can typically be included in a fire insurance policy for a duration of one year. However, it’s vital to check with your insurance provider for specific terms and conditions, as they can vary.

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