How to claim impact damaged by another car or your vehicle
How to claim impact damaged by another car or your vehicle. A plunging palm oil truck tanker crashed into the front portion of the house, causing severe impact damage to the hall, situated beside the main road. Who to claim for impact damage? Nowadays, commonly seeing your home crashed by road vehicle, it highlighted in the daily newspaper.
Claim impact damaged by another car or your vehicle
Impact Damage is defined as, loss of or visible physical damage to a home, with the or destruction caused to the property insured, due to impact by any Rail/ Road vehicle or animal by direct contact not belonging to or owned by
a) Insured or any occupier of the premises or
b) Employees while acting in the course of their employment.
How to claim impact damaged by another car or your vehicle l
On my way to Johor Bahru via the country road instead of NS highway, enjoying the clean and fresh air drive along the row of green oil palm plantation dotting a skeleton of Felda scheme houses along the way.
“Bang….Bang….Bang” Startling to hear a loud voice disruption, the echoed silence of the scorching sultry afternoon. The loaded tank full of palm stearin had rammed downhill into a house, carpeting the whole front hall yellowish and spilled onto the ground.
Curiously dashing out from the kitchen, a retiree couple clad into their “sarong” trying to investigate the outcome, I too dashed down to help to pull out the driver that stuck in the driver seat, suffered a minor injury with the bruise on the hand and forehead, dumbfounded and speechless. Advising the driver to lodge a police report, consequently, soon the venue gathered with people, after the brouhaha, nobody had an idea how to handle the situation.
To Whom Can We Claim Impact Damage
How to claim impact damaged by another car or your vehicle
The main question here was as to whom we shall claim for the impact damage to the house. I had asked so many people in the seminar or even at the scene.
“Claim from the truck insurance?” All replied me such an answer, similarly, for the elder couple’s son too.
“Can you show your house fire insurance, please? I asked the son. Examined the coverage detail closely, I assisted him in calling the insurer’s adjuster to survey the hall damage to ascertain the loss of the property.
To their dismay,” why not claim the truck insurance, i.e., thirty party claim.” Yes, indeed, it is logical to file a third-party claim.
Third-party claim
The cons
How long to wait for the thirty-party claim?
Why enrich the lawyer’s pocket?
Do you know when the motor adjuster will finalize the accident report?
To what extent can we claim the emotional damage?
It is time-consuming to attend the court hearing postponed one after another.
Can you afford to keep on applying for unpaid leave?
Not afraid of your house being burglarized? You prefer to wait for three months or 2 to 3 years to reconstruct your home.
Cover the shortfall after deduction of 20% of the legal fee. If the insurer pays you $100 000 to reinstate the hall, Can you make up another $20 000.00 shortfalls to rebuild the damaged property?
Fire or Homeowner Insurance
Having a house owner or fire insurance with an extent of impact damage excluding the insured’s vehicle, you claim directly with the insurer submitting the original police report, photograph before and after damage, and of course, the plan and construction bill. If your house is adequately insured, no average will apply; you will reimburse fully.
After signing the subrogation claim letter, let the insurer deal with the faulty party rampage your house. It solves all your teething problems and subsequently saves a hefty amount of litigation fees.
Riot, Strike, and Malicious Damage Protection to Property
Riot, Strike, and Malicious Damage Protection to home. In a nutshell, a riot is, at least three persons are present in one venue.
Gather for a common purpose.
Execute or inception of the common aim.
Assist mutually one another by force, if necessary, in the execution of the common purpose.
Display forcibly and violence to alarming one person of reasonable firmness and courage.
Malicious Damage
Malicious Damage covers the non-fire Damage acted by a person acting out of personal malice instead of 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., 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 hefty high loss of money and endless emotional Damage. Loss caused by sabotage and terrorism with the use of force or violence. Regardless of the purposes, it could be political, religious, or ideological motivated to influence any government and put the public in fear.
Nowadays, political turmoil in so many parts of the world, coupled with the anti-vaxxer, riot, strike, and malicious is rampant. During the Covid-19 lockdown, people suffer high anxiety and depression. Thus, people taking the law into his hand. Rioters march in a crowd to the public to demand their freedom right. No one is right or wrong. The public speaks out their frustration with the government handling the pandemic and high employment.
Riot, Strike, and Malicious Damage Protection to Property
How long is the economic and pandemic will be over? No one knows it. How shall we protect our property against riot, strike, and malicious damage? The Hudson choice to buy insurance to protect our home and merchandise.
How to protect our property from riots, strikes, and malicious damage?
When a disaster strikes on your house, you’re the social status in the community, indeed a misfortune, so how shall we overcome it? Depend on a handout from the concerned authority or seeking a public donation. Notwithstanding, Self-help is a wise idea.
The preferred solution by examined your fire or householder or house owner policy closely. Finally, contributed an insignificant sum of the 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 nights and pointless to save a penny, you ultimately lost an arm and leg when a riot occurred.
Riot, Strike and Malicious Damage Protection to Property
Riot, Strike, and Malicious Damage to Good
Let put out a scenario, an exporter stuffed their produce in the FCL, as the space constraints in the factory premises. The container parked at the public road facing the building, within the view of the 24 hours security guard.
Well, in another case, an importer due to the closing of the unloading bay closed after 6 pm, the workers had gone home for the day. Consequently, on seeing this situation, the hauler company left the FCL container opposite the road.
Will the insurer repudiate the claim if the rioters damaged part of the consignment cover under the ICCC “A” clause for both cases?
What about land transport like car, low-loader, forklift. Excavator, motorcycle, Is riot cover such movable automobile?.
A riot occurs; how can we protect the merchandise from riot? How shall we deal with this kind of situation? Reader, please share your view and comment!. Humbly, I sincerely appreciate your time for writing your opinion or words. Let us share the knowledge in this forum together.
How to protect a home against Earthquake and Volcanic Eruption
How to protect a home against earthquake and volcano eruption? Do you recall earthquake cracking its way into Malaysia soil?. Without any apparent warning sign, a magnitude size of 6.00 on June 5, 2015, erupted at Mt Kinabalu had rocked the nation off guard. The Sabah earthquake not only devoured 18 life but brought masses destruction to the infrastructure and building with estimated total damage to US$2.84 billion. Consequently, we are no longer living in the free earthquake zone. But fortunately, we do not have the volcano eruption occur here. Have you insured your home against the Earthquake and volcanic Eruption? Now, have you ever thought how to protect a home against earthquake and volcano eruption yet?
Not only in Malaysia, very frequency we hear the occurrence of earthquake associated with Tsunami globally. Also the volcano eruption, the oozing lava burned everything along its path.
The spillage of the volcano ashes would blanket the sky for month and years. All commercial aircraft ground on the ground. Not only suffer massive economic loss, but also causes hardship to the stranded passengers.
Nevertheless, it is not too late to review your home or fire insurance policy content. Please call your agent to pass endorsement for this clause if it is not covered. It is just a nominal sum to protect a home against earthquake and volcano eruption.
How to protect a home against earthquake and volcanic eruption
Home insurance Earthquake and Volcano Eruption
The earthquake and volcano eruption protect a home against all kinds of damages, including those arising directly or indirectly out of earthquakes,
tsunami or volcano eruptions including fire, explosion, landslide, and land collapse, including the foundations and retaining walls in the cover.
How to protect a home against earthquake and volcanic eruption
The following four items to cover the loss due to the cause of
Earthquake.
The Volcanic Eruption means eruption,
explosion, or effusion of a volcano.
Any Sprinkler Leakage is resulting from Earthquake.
The Sprinkler Leakage resulting from Volcanic
Eruption. Volcanic eruption means the
The eruption, explosion, or effusion of a volcano.
All Earthquake shocks or Volcanic Eruptions
concurrently occurrence within 168 hours will constitute a single Earthquake or Volcanic Eruption.
The expiration of this policy will not reduce the 168 hours.
volcano eruption lava oozing ou
Exclusion clause for earthquake and volcano eruption
The insurer shall not be liable for any damage arising out of the loss of insured items during fire and explosions caused by earthquakes or volcanoes.
Deductible:
Insurers are liable for damages over Total Loss occurrence in 72 hours, the period in damages caused by earthquake and volcano eruptions excluding fire.
The concrete building will attract a higher deduction than a wooden structure as the former razes to the ground completely. Nevertheless, it is unusual to have over $50 000 for any claim loss unless you can prove to the underwriter that the building will build to earthquake resistance proof-like in Japan. Sad to say that the Malaysian government’s lukewarm attitude, sitting in the comfort zone, has not acquired such enforcement skills.
Premium Rate: 0.010%
If you are insuring your commercial building for a sum insured of $2 million thus, the affordable premium is $200 per year. Why saves a penny now, spending a fortune later to reconstruct your sweet home later on?
How to protect a home against earthquake and volcanic eruption
Important to have Earthquake and Volcano eruption clause
Occasionally occurrence tremor on the Peninsular Malaysia hailing from large earthquakes in the Sumatran plate margin. The highest observation recorded VI on the Modified Mercalli (MM) scale. No exception to East Malaysia with the localized Earthquake rampages on properties damage and human casualties.
The peak VII on MM scale intensity earthquake on the Southern Philippine and in the Straits of Macassar, the Sulu, and the Celebes Sea had spilled over the Sarawak and Sabah.
The Earthquake occurs, the magnitude size is not a contributing factor for asunder destruction, but the population density and fire as a secondary event.
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How to claim Impact Damage by Insured own car? What are we going to do? Do you want to make claim on the owner’s car insurance? There will be no claim discount for the upcoming car insurance renewal. What should the house owner do as the next best course of action? Are you repairing one’s own car and home out of one’s own pocket?
Impact Damage by insured own car
Nowadays, it is common for people to be distracted by their cell phones while driving. If a slip gets out of hand, it may accidentally collide with the insured house’s pillar or outbuilding. In most cases, the insured would have to pay for the repairs themselves. However, most people are unaware of house fire insurance or homeowner policies. Furthermore, the insurer or agent would not draw attention to the fine print of such a policy.
In the fine print of the policy, it read as follows”-
Impact Damage due to Insured’s Rail/Road Vehicles, Forklifts, Cranes, Stackers, and the like and articles dropped from there. “In consideration of an additional premium of RM._____________, it is now agreed and declared that the policy extended to cover loss and damage caused due to impact by direct contact to Insured’s property caused by Insured’s Rail/Road Vehicles, Forklifts, cranes, stackers, and the like and articles dropped from that place.”
Impact Damage in the Wee hours of the morning
A loud “Bang Bang” broke the eerie silence of the moonshine night. After attending a relative’s wedding reception at a posh hotel, an elderly couple drove for over an hour. His white shirt had turned blood red due to the amount of blood oozing from his forehead. His wife, with a broken arm, begged her daughter for assistance.
After crawling out of the vehicle, he discovered that the strong impact had destroyed the front auto gate; his car had rammed directly into the front broken brick wall. The main hall was partially damaged, with broken glass strewn all over the place.
“Oh my God,” Lina, get up!” The couple shook their daughter vigorously, but it was in vain. Lina and her companion were motionless in a pool of fresh blood.
How to claim Impact Damage by Insured Own Car
They quickly summoned an ambulance, which arrived 15 minutes later. They were rushed to the hospital by paramedics. Fortunately, their younger son was in the backroom and was unharmed. He was shocked when he saw the chaos in the hall. In sixth and seventh grades, students are unsure of the next course of action to take. A freak accident like this does happen; the general public would panic.
Take pictures of the Impact Damage Scene.
The insured is required to file a police report right away. Attempt to limit further loss by guarding the house contents against being robbed. Examine the fire or house owner or householder policy to see if it includes an additional peril for Impact damage caused by the insured’s vehicle.
Adequately insured.
There is only a RM 400 deductible for impact damage caused by the Insured’s vehicle. The auto gate and brick of the main hall and a portion of the damaged wiring system, door, and lock cost approximately RM50 000 less the Rm 400 deductible; thus, the insured can claim up to RM49 600.
THE ELDER COUPLE AND HIS DAUGHTER.
They are entitled to a claim of up to RM10,000, or 50% of the sum insured. On the other hand, Lina’s friend can make a claim for up to RM300,000 for her bodily injury under public liability in the fire or house owner policy.
The householder policy covers items such as a television, sofa set, decorative items such as a painting, flower vase or table, and a chair. The elderly couple also bought such a policy. Otherwise, they behave as if they are their own insurer.
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how to claim impact damage by insured own carHow to claim Impact Damage by Insured own Car
How to protect against Hurricane Damage with Insurances? Typhoons and hurricanes frequently occur on 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 was also highlighted by Greta Thunberg in the recent United Nations youth forum.
Generally speaking, Malaysia is a safe haven from natural disasters, 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 against Hurricane Damage with Insurances?
Can I insure my house against hurricanes, cyclones, typhoons, windstorms, and floods? Of course, you can. 1st you need to have 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 against Hurricane Damage with Insurances?
Typhoon insurance covers only wind damage, the 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?
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:
The type of damage.
2. How it was caused.
3. The type of homeowner coverage you purchased and where you live.
How to protect against 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 against 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 against 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 is based on the wording and exclusions of your policy. However, equally important is 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 was 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
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 against Hurricane Damage with Insurances?
By definition, a flood insurance policy is conversely different from 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 all homes and commercial properties but also in the National Flood Insurance Program’s (NFIP) floodplain. However, properties are 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, considerations 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 cover these perils at an additional premium. Others reject it even though the insured is willing to pay the extra premium. It is mainly due to a reinsurance or co-insurance treaty.
Personal accident policy usually does not cover a tidal wave.
Some insurers cover you against hurricanes only if your house is 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 adequate hurricane damage house insurance.
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).
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.
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?
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?
Florida braced the impact of Hurricane Irma, destroyed of million homes, massive economic losses. The financial cost of Hurricane Irma could rise as high as $300bn the storm lashes Florida, damaging homes, businesses and critical crops, including orange groves.
The recent masses 6.3 million evacuations of Florida before the imminence of category 5 of Hurricane Irma ignored by the Trump admiration about global warming. The speed of 150 Km per hour swept away houses and vehicles along its path, uproot trees, resulting in a million lost their homes, no electricity and no clean water supply.
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 shares for wind damage and 150 000 claims for flood damage, insurance claims for Irma are 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 impossible for consumers to understand, as the general public cannot consider insurers selling them a policy with wind coverage that could disappear playing with technical insurance 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 least two 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 mature plants or crops.
Keep domesticated animals on safe 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.
The water container covers with a lid.
Please 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 centre, 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 the family.
Ensure a proper meeting place if the smartphone is not working.
Note down the important emergency number.
After the typhoon
If a typhoon destroys your private home, it is advisable to stay elsewhere.
Watch out for snakes that 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 breeding grounds for mosquitoes.
Remember, preparedness is the key. So be smart and stay alert.
Can I insure my house against typhoons and floods?
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.
Typhoon insurance covers only wind damage, but not the 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. The insurer is liable for loss or damage to the building or insured property whereby the rain is entering the building through openings in the roof or walls caused by the typhoon. There is No cover for the water damage due to the door being open, windows, transoms, or roof lights being left open, despite a typhoon’s existence or presence.
Flood Insurance
The flood insurance does not cover loss or damage caused directly or indirectly by landslide, subsidence, explosion, incidental to flood or not, and theft occurring during or after a flood. In addition, the following do not constitute a flood: overflowing, bursting or leakage of water tanks, pipes, gutters, downpipes, 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. Others reject it even though the insured is willing to pay the extra premium. It is mainly due to reinsurance or co-insurance treaty.
Personal accident policy usually does not cover a tidal wave.
Some insurers cover you against typhoons only if your house is made of concrete under a galvanized iron roof or against flood only if your home is built on high ground. Again, it is best to let your insurance agent or broker negotiate with their principal.
How to claim Hurriancedamage 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.
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.
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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
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 policycover 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.
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
8 THINGS YOU MUST KNOW BEFORE FILING A CLAIM FOR HURRICANE DAMAGE
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.
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Your Thoughts
As usual, I would love to hear any thoughts or questions that you have in the comments section below.
How to Determine the Sum Insured for Loss of ProfitInsurance?
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.
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Addition
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.
Difference
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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Your Thoughts
As usual, I would love to hear any thoughts or questions that you have in the comments section below.
The Loss of profit insurance sounds an alien phrase to the majority of the agent, nevertheless, it brings a profitable for an underwriting profit for the year-end. Despite the fact it is a complementary policy to the fire insurance for the existing client, the agent silence on this as if it is a taboo subject to even those veterans. Stumbling across an agent serving an insured for the past 2 decades, never raise the issue on this loss of profit insurance. Consequently, he would out of business for the following year, when a knowledgeable, armed competitor edged over the business.
Industrious to learn this subject, without the Accounting, grasping to analyze and digest this subject is a tremendous task for me. Enrolling in the class whereby I was the eldest peer among the student half of my age. Doubling hard, sacrificing my family time, enrolling for another 3 subjects for Australian Institute of Insurance via self-study. Passed 4 with 3 credit another with a distinction in addition working in a public listed insurance company and managing my logistic firm. No Labor, No Gain is my philosophy. Firmly believe the saying learning begins at the womb, ending at the tomb.
What is Loss of Profit Insurance?
Well, in basic terms, loss of profit insurance ensures your business having a decent income when impossible operation at full capacity with declining revenue as you normally would and the subsequent loss of profits
So, essentially, it covers the loss of profit your business will suffer consequences damage from an insured peril. Insured perils typically include fire, floods, hurricanes, storms, earthquakes or volcanic eruption.
The types of events impact where it’s possible to halt your business operations for a period or operate at a lower capacity, typically result in a loss of profit. It ranges from between being a minor blip on your business’s earning potential radar to completely obliterating your business.
Interpreting the coverage
An insurance policy is an evident contract between the insured and the insurer, spells out the right and duties between them, particularly, specifies the circumstances under which the insurer will pay the insured. And if the insured or anyone wants to know the coverage provided by the insurer, by finding the answer in the policy.
Policy couched in legal terms and phrases, not surprisingly few people including agents actually read and understand it. Such a situation judge an advocate of creative insurance marketing should not condone. After all one of the basic selling skills is product knowledge, indeed “Know the product” is one of the commandments practiced religiously by disciples of “creative selling” or “high impact selling”.
Is a problem for Malaysian scenario, not just food for thought?
Agents generally lack in-depth product knowledge that they are selling. The lacking not only blunts one’s competitive edge but also prevents one from reaping opportunities offer. Apparently, one contributing factors is the tangible aspect of the insurance product in the form of a legal document, undoubted hard read and understand due to the lengthy sentence full of technical jargon words. Both the insured and the agent, gratefully, they could spare the effort to read the policy. Another reason, many insureds show little interest in the exact coverage offered under such policy until they come to a crunch when a claim arises. Such apathy coupled the incompetence of many agents to explain the policy coverage fluently resulting in unjustified criticism that insurance product hides in a black box and you probably won’t know what is inside until there is a claim.
Loss of profit, what to cover in my next coming post?
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