To those newbies who is buying their first home, please read the Banking secrets revealed, why pay more?
Buying your first ever house is a dream come true for those yuppies. But be aware what the banking secrets revealed, why do you have to pay more during the time when you are not in a fat city. Especially those newly wedded couples with a shoestring budget, coping with the wedding expenses and furnishing their sweet home.
After a numerous viewing.
From one house to another house, finally, you settled with the new a single semi- detached double. Price tagged RM700,000 in a suburban area. It is 5 kilometers drive from to the town central, your office just a stone away from the MRT.
Armed.
Armed with all the necessary documents, both the couple goes to their favorite X bank for a 90% margin loan which is duly approval.
Mr. Y, the X bank manager give you the widest sincere smile, cordially invites the couple to his cozy private office.
“Mr. & Mrs. So and so, it is the bank procedure requirement to buy a fire or house owner policy for your new house, since it is 90% margin loan over the purchase price of RM700,000, thus the sum insured will be RM630,000.00. Please sign here on the dotted column.” the bank manager advised their client.
” Sure, no problem.” Mr. & Mrs.So politely pen on the dotted line.
” If you have any question about thefire insurance, please don’t hesitate to call me or my staff, I will be happy to serve you at all time” the bank manager affirmed the blissful couple who are on the way to Hawaii for their honeymoon.
Here are the questions for anyone to answer.
Banking Secrets Revealed, Why Pay More?
Can the ground that erected your house can fire it down?
Don’t be naive, who is the housing developer running on charity build the house without any profit?
Do you move into to your new house as where the basis is?
Not spending a fortune to have extensive renovation?
All the answers will unveil soon in my next post.
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Insurers Indemnity New for Old Electrical Appliances? Can you believe it? If insurers do pay your claim.The public would have two responses.” I….s that tr…….ue? Martin asked with his unbelievable eye.
” Yes, my Led Television which I brought in 2014, the recent lightning damaged it, the insurer paid me the 2017 current price” Mary proudly told Martin.
” No depreciation or wear and tear? Which insurance company would be so kind to pay you the new current price? Who is your insurance broker/agent, Can you introduce to me? Martin probe further with more questions.
Why Insurers Indemnity New for Old Electrical Appliances?
Many insured assume the householder policy making a claim, they would receive a new replacement cost for the replacing stolen, damaged or lost items.
While this certainly might be the case, but often it isn’t always. Many insureds are disappointed to find that the terms of their cover mean they only receive a claim settlement after the age of items and wear and tear have been taken into account.
What ‘new for old’ means
‘New for old’ ensures that when you’re claiming on an item (although not necessarily all items) you will be compensated sufficiently to exchange it for the exact same, new version; or, if that no longer available, the latest equivalent.
Criteria quality Insurers Indemnity New for Old Electrical ApAppliances?
The said claim items must be less than 5 years old.
It must be adequate sum insured on each renewal.
Let us say you purchased an item cost RM10,000.00. On each renewal, the sum insured must be also RM10,000.00 from 1st to the fifth year.
What new for old policies won’t cover
Easily ruined or lost like clothing, and bed linen only a few items new for old policies won’t include compensation for.
The trendy fashionable items like the customized handbag, shoe and handphone are in the excluding list. It is best to read the small print in the exclusion clause as policies vary between one insurance companies to another insurer.
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Impact Damage by Insured’s Own Vehicle.Is it payable? What shall we do? Claim own car insurance? No NCD on renewal? Repair own car and own house out of own pocket?
Impact Damage
Impact Damage due to Insured’s own Rail/Road Vehicles, Forklifts, Cranes, Stackers and the like and articles dropped therefrom. “In consideration of an additional premium of RM._____________, it is hereby agreed and declared that the policy is extended to cover loss and/or damage caused due to impact by direct contact to Insured’s property caused by Insured’s own Rail/Road Vehicles, Forklifts, cranes, stackers and the like and articles dropped therefrom.”
Wee hours of the morning
A loud “Bang Bang” disturbed the eerie silent moonshine night.An elder couple drove tiring over an hour drive after attending their relative’s wedding reception in a posh hotel. His forehead oozing out a lot of blood, his white shirt turned into blood red. His wife with her broken arm crying her daughter for help.
To his horror
After crawling out from the vehicle, the strong impact had demolished the front auto gate, his car rammed right to front broken brick wall. The main hall partially damaged, with broken glass scattered all over the main hall.
” Oh my God” Lina wake up!” the couple shaking their daughter vigorously, to no avail. Lina and her friend were lying motionless in a pool of fresh blood.
They hurriedly called the ambulance, it arrived 15 minutes later. The paramedic rushed four of them to the hospital. Fortunately, their younger son was in the back room, found sound and unhurt. He startled to see the messy hall. At sixes and seventh, wondering what the next course action to take. Such a freak accident does happen most public would panic.
Take pictures of the scene
Insured had to make a police report immediately. Try to mitigate the further loss by guarding the house content being robbed. Go through the fire or house owner or householder policy to see whether the policy has an additional peril for Impact dagame by insured’s own vehicle.
Adequately insured.
There is only a deductible of RM 400 for the impact damage byinsured’s own vehicle. The auto gate and brick of the main hall and part of the damage wiring system, door and lock cost about RM50 000 less Rm 400 deductible thus the insured can claim up to RM49 600
The Elder couple and his daughter.
They can claim up to RM10 000 or 50% of the sum insured. As for Lina’s friend, she can claim up to RM300 000 for her bodily injury under public liability in the fire or house owner policy.
House content like television, sofa set, some decorative item like painting, flower vase or table and chair, it is payable under the householder policy provided that the elder couple also purchased such policy. Otherwise, they act as if their own insurer.
Storm and Tempest Claim under Fire Insurance?What a title? Weird or insanity? It is the misperception for most of the public at large. Some of the general insurance agents often mislead the insured.
” No such thing” ” Nonsense” I often hear this when I give training to those general insurance agents.
” Nonsense” I often hear this when I give training to those general insurance agents.
To matter the worst, one veteran agent said” It is an act of God, no claim” Oh…oh
I was at sixth and seven could not believe what I heard.
If the agents are not aware such clause, it will advise their insured wrongly.
What are Storm and Tempest?
A storm is defined as a violent atmospheric disturbance that produces severe winds, accompanied by rain, snow or hail or by thunder and lightning.
A tempest is an exceptionally severe storm.
What does it cover?
The insured is allowed to claim for damages that occur as a result of a severe weather event. It may include damage to the building structure. Or items within the building damaged by the storm (for example office equipment damaged by rain water after the collapsed roofing.
The policy excludes damage caused by a fire because any fire that broke out as a direct result of a storm would be covered under a fire policy.
It does not cover the consequential losses incurred as a result of any interruption caused to your business unless you take up business interruption cover.
What having Storm and Tempest cover means to you?
Your property is protected against the potentially very costly repairs due to storm and tempest.
The Average Clause
It is a penalty to the insured. Let say, you claim is amounting to RM10,00o.00 for the building. Your sum insured was RM100,000.00. 1% of RM100,000.00 would be RM1,000.00 Thus your claim would be RM10,000-RM200 = RM 9,800.00 But if the actual sum insured of a building was RM200,000.00. You insured for RM100,000.00 which was under the insurance of 50%. The average shall apply in this scenario. Thus the claim would be RM10,000.00 x50% – RM200.00 = TM4,800.00. The difference of RM5,000.00 being you act an own insurer.
Average
“Average ” is an insurance term for the penalty for under insurance. Some clients want to save some premium. Insured advises the agent put insuring a lesser amount.
One of the low-cost house. the storm blew off the whole roofing and wiring system. The water wet the whole wiring system. The insurer paid the RM3,000.00 for the root top and RM5,000.00 for the wet wiring system respectively. Another double terrace house, the tempest ripped part of the hall roofing and damaged the amplifier system. The insured satisfied with the claim of RM3,000.00 for the roofing. But No payment for the amplifier. On checking the policy, the insured only inserted furniture and fitting, plant and machinery instead of electrical appliances.
It is always advisable to include the storm and tempest endorsement for both the fire policy on building another for the content.
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As fires become an increasingly prevalent threat, especially during the hot season. The insurer tries to deny liability in any way to cut down their fire loss ratio in the underwriting portfolio. Insured need to familiar on how to make a fire claim. Losing your home and personal belongings to a fire is already a devastating experience. Nobody wants a hard time dealing with the insurer on the claim. Here are some tips to follow when dealing with fire insurer on you claims
1. Ask for an advance against your ultimate fire insurance claim If you were forced to evacuate due to the dangerous conditions. Just grabbed your important documents and some clothing. Don’t panic. Call your insurer for some advanced of money. You can purchase the necessities without having to wait for the final settlement. Take care of your needs, but be sure to not go overboard. Be practical with what you buy, because the insurer can refuse to reimburse you for frivolous things. For example, if you need a pair of slacks and a dress shirt to work. This advance will be deducted from the final settlement. Don’t worry, No Interest will be charged for this advanced.
2. Make a list of everything you’ve lost and do not throw anything away. Do it immediately as it is still fresh in your memory. The fire adjuster needs to see the fire damaged article even though it burnt to ash. It is a proof to claim from the insurer. You are denying your own right to claim by discard away the damaged item.
3. File your claim right away, it is the duty of the insured either by inform the agent or insurer. Call the insurer to send the adjuster ASAP to assess the loss. The insurer requires you to submit a “proof of loss claim”. This is the form includes all of the items you lost, including their value. Your prompt action is especially important if there were many other homeowners affected by the fire.
The following is a list of information to include in your claim.
1. Date of loss.
2. Type of loss or damage.
3. Location of damage.
4. Any related injuries.
5. Others involved.
6.The condition of the home.
7. Description of damaged contents.
8. Whether or not temporarily repairs are necessary.
9. An original police report.
Dealing with the claim is a very convoluted process involving countless calls, emails, letters, and documents. Be sure to keep track of all communication and keep a copy of all documents and post office receipts of mailing. It plays safe to ask the insurer give back the acknowledged back copy for all the documents tender to them. This is to avoid the future dispute of not receiving the required documents.
4. Secure your property to mitigate damage The insurer requires you to take reasonable care of your property. Therefore, be sure that you secure your property from further damage. It is unnecessary for a total loss. However, where only one section of your home is damaged, be sure to take proactive measures in preventing further damage. The mitigating loss means reducing the amount of damage. Ways to mitigate loss include
• Covering holes in the walls and roof to protect from “full theft”
• Boarding up or building a fence to prevent looters •
• Smoldering all embers.
• Moving property that is at risk of further damage (for example, moving the unharmed television out from underneath the hole in the ceiling).
5. Keep track of your living expenses. Your fire policy includes a clause called “loss of use,” It means that the insurer reimburses you for your living expenses while displaced from your damaged home. Note, however, that you are only entitled to the difference between what it costs you while displaced and what it was costing you in your home. For example, if your monthly living expenses are $4,000 per month, but now you are having to add hotel stays, restaurant meals, laundry expenses, and extra petrol for your car, totaling an additional $1,000, your insurer company will only reimburse you the extra $1,000 per month. If you to stay with family members or friends instead of at a hotel. Sometimes, the insurance company will reimburse your host for the additional costs of your stay. Ask your host to itemize the additional costs. Take extra care to be reasonable and not frivolous, and be patient with your insurer should they want to negotiate with you for this cost. Politely remind the company that you are saving them a great amount of money in hotel and restaurant expenses by staying with loved ones.
6. Get the right repair estimates and keep receipts and documentation to everything. Filing fire insurance claims enables you to repair or even rebuild your damaged home. The reinstatement cost is “Actual cash value” policies entitled you to the amount it would take to return your home, including its contents, to its before fire fair market value. “Replacement” policies entitled you to the amount it would take to replace the home and its contents, regardless of the value of what you lost. “Replacement” coverage does not require you to actually rebuild your home on the exact same lot. You can choose where you want to rebuild. So, long as it is the same value as your old lot, your insurance covers it. Of course, if you move to where the house more expensive, you will end up paying the difference. If you decide not to rebuild, but to invest the money in something completely unrelated, like a business or college fund, the “replacement” policy will become an “actual cash value” policy, providing you with about 15% less. The insurer requires an estimate of the fair market value or cost of replacement of damaged property before the fire. The insurer has in-house adjuster works in favor of the insurer. It is best to engage a reputable independent adjuster to deal with your insurer to determine the final sum of the claim.
7. It is a great mistake not continue paying your premium even though you filed a fire claim. The house owners’ policy including liability protection for your home, including pets. The Animal also suffering stress too. Your beloved might chew your expensive bed. You can claim for the damaged bed too.If you stop paying the premium, sorry to say, there will be no claim for you. Please bear mind to inform your new address to your insurer or agent. Request to reduce the premium for vacant risk. Adjust this after your new home is built.
8. You might overlook in the initial claim. You can resubmit those omitted items to the insurer. It is a common occurrence when there a mass destruction. In such a stressful and confusing time, it is likely that you may forget to list an item of value in your initial insurance claim. Give yourself some time. Protect yourself by waiting a few months before consenting to close your claim. It is your right not to close the claim so soon by sending them a letter thanking them for the payment, but asserting that you do not consider the claim closed.
9. If you are unable to reach an acceptable settlement after engaged your own independent estimator or contractor, consider hiring a public adjuster. Their role is to negotiate with the insurer on your behalf. The cost is worth it when hiring the public adjuster to help you to get a better compensation.
10. Don’t worry about losing your insurance coverage. You would not be blacklisted, unlike the car “habitual claimant” This is not the case. As long as you file your genuine claim with no element of fraud, the insurer will not penalize letting you in renewing your policy with them. For more information, the following websites are extremely helpful to victims who need immediate help and answers
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Get it down on paper: Flight cancellation or delayed , you need a written from your airline.
Contact your insurer: Check with your insurer for any additional cost for n flight and accommodations.
Keep receipts: You need to keep your original receipts , boarding passes, and credit card statements to claim from your insurer.
What Should I Do In An Earthquake?
The devastating earthquake in Nepal killed and displaced thousands of people. Whilst a huge tremor this size is said to occur only once every hundred years. The catastrophic consequence was due to Nepal’s poorly built infrastructure. Prevention is better than cure, it is unlikely to get caught in an earthquake on holidays. With popular tourist destinations such as Japan, Nepal, and Indonesia all bearing the brunt of sizable earthquakes, it’s important to have the facts and understand all the necessary safety procedures.
Firstly, if you’re travelling to an earthquake-prone region you should buy travel insurance. You need to understand the fine print . Knowing the emergency phone numbers procedures for the region and keep your passport and photo ID secured with you at all times. It is wise to have a backup plan while living oversea in an earthquake zone area.
Earthquake survival tips: It is worth to understanding the local safety codes. For instance, with modern infrastructure countries , such as Japan, the best place to hide is under a table in the middleof a room. On the other hand, in countries like Nepal with structurally unsound buildings, the rule of thumb is to evacuate immediately. Brushing up on the area’s safety procedures can make all the difference when it comes to your security.
Depending on the state of the disaster area ,it is best to return home immediately. Safe but stranded due to cancelled flights and damaged infrastructure, you may incur significant accommodation and travel costs. The insurer will reimburse you by travel insurance,It ’s advisable to keep any additional expenses to a reasonable minimum and retain your original receipts.
Even if you are a seasoned a traveller, an unpredictable event such as an earthquake can turn your holiday into a nightmare. Don’t forget to purchase a travel insurance and understanding any significant exclusions. It is the first step in managing a natural disaster.
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