Frequent Freak Storm Lashes Malaysia Home. On 13 March 2017 at 5 pm till 6 pm. The fallen tree branches damaged several cars. Some of the house with the roof gone missing after a severe storm so did the emergency room of the Kulai hospital.

The case is still fresh in my memory. In 2015, The freak storm badly damaged 266 homes. A lot of publicity by the concerned politician with donation thrown in for the ill-fated homeowners. Was the 1k donation enough to repair the damaged home?

At the scene to hear the feedback.

“Luckily, we got the donation from MP, otherwise I do not know what to do.” one voice from the crowd.

” Can we claim the insurance?”

“Fat hope, cannot unless fire burns the house.”

“I thought no need to buy the fire insurance since I had already settled the housing loan.”

“Why not the house owner insurance? a slash agent asked

“This time, I have to spend a fortune to repair the house, my kitchen roof had vanished, the water damaged all my kitchen electrical appliances.”

“You are so lucky, my house the whole roof being blown off.  A pool of water drenched my whole house. The uprooted tree in front my house damaged my car.”

After the brouhaha, life has to go on. There was a great demand of handymen. The repair workmanship had jacked up. They worked round the clock to repair all the house on the cash basis. No money no talk.

One house owner spent on the car porch only realise that insurer refused to pay the full claim even though 150k sum insured of his house. The average law applies in this case.

“Average”

Where a Sum Insured is stated to be subject to average, this means that if at the time of Damage, the Sum Insured is less than the total value of the Property Insured, You will

(a) be responsible for the difference

(b) bear a proportionate share of the loss

To reinstate the house at the current price would be 300k. It was not wrong for the insurer paid him only 25k.

The calculation 150k/300k x 50k = 25k.

Average Clause

A term used when calculating settlement of a claim when the property insured at the time of the loss is of greater value than the Sum Insured.

In property insurance claim, the claim amount is limited to the sum insured noted on the policy.  The policyholder declared Value is the figure used to determine the premium applied to the policy.

A woman who low-cost house with a sum insured of 50k instead of 22k when she purchased the house. She had a home-owner policy although she finished paid her housing loan. The insurer paid her 8k+, it was out of her expectation. 3k for the roof damaged and another 5k for replacing a new wiring system as the old wire being soaked by the water. Dangerous to stay if short-circuit break out. She thanked me profusely for advising her earlier not to save this kind of money. A few hundred dollars for a month rental while her house being under repair condition.

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