Strike Riot Malicious Damage To Your Own House. Bank Manager does not understand insurance got burn on his finger.
I am sure this topic will arouse and wake up all the potential bank housing loan borrowers. But the sad part of it, most of the bank in Malaysia will insist you to buy a fire insurance to protect the house. Most of the bank still having a subsidiary general insurance company to secure them. Consumers interest is never looked into. Moreover, it is none of the bank business.
In the western counterpart, when the bank provides a loan to a borrower, he/she need to purchase a creditor insurance to protect the bank loan interest. The bank has no insurance interest on your house when it is burnt down by fire.
I did have a bank loan with the local bank, but I insist buying my own fire insurance with my foreign insurer because the coverage is wider comparing to the local insurer.
Signing blank proposal form
When you secured a housing loan, the bank staff insist you signing a blank form on the fire insurance proposal. Likewise is the same to all the bank managers taking a housing loan from their working bank. It is not important whether you understand the coverage because Malaysian often take for granted a fire claim never occurred to them.
Mr. X, one of the bank manager called me, ” Mr. I need your help to claim my house insurance.”
I said, ” Sure, no problems, we fix a date during the weekend.”
I arrived at his home and said, ” Look like you get a recent promotion, now have plenty of money to renovate the kitchen.”
Theft
“Don’t be sarcastic, the theft entering my house via the kitchen washing area. They knocked down the wall structure that below the water sink area, steal some of my inexpensive stuff.” the bank manager informed me.
When the neighbor maid saw it, “What are both of you doing here.”
” Oh, the bank manager want to do some renovation in the kitchen with his recent promotion.”
Special peril
After checking his fire insurance policy. ” Sorry, you cannot claim a single cent from the insurer as you did not add a clause strike, riot, and malicious damage.’ I advised the bank manager.
Since we had known each other for several years, you can call me for free advice. He learned a painful lesson by saves a penny but losing an arm.
Finally, he admitted he really did not know the fire insurance special perils can be added to the policy by paying an extra premium. Please remember the maxim ignorance of the law is no excuse.
RSMD
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Riot – An unlawful assembly of 4 or more persons.
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Strike – A revolt against established authority or public interest.
- It may be extended to cover deterioration of goods, in addition to direct loss or damage due to fire arising from public disturbance.
Malicious Damage
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Any damage caused due to personal grouse or ill will.
All acts of commission are covered and Acts of omission are not covered.
Eg: During a strike, the public may cause some physical damage. This is an act of commission. This is covered. -
Forgotten to switch off the fan and consequential damage caused due to this is not covered. This is an act of omission.
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Prevention of access is not covered. Burglary and theft during RSMD are covered.
Strike Riot Malicious Damage To Your Own House. Bank Manager does not understand insurance got burn on his finger.
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Wow. Is this kind of damage to houses a big problem in Malaysia?
yes, it is very common, they can even empty your house by using a truck, only left behind a few old clothing.
Interesting article to read. Thanks will take note.
thanks for reading my article and comment
This sounds like quite a problem. Is it all over Malaysia or more common in urban areas?
Since I’ve always lived rather rural; I’ve been very fortunate in this regard. I think people have more trouble in urban areas. I did have to purchase fire insurance to buy my house. Did you say it wasn’t required there?
Jeannie
yes, it is very common be it in the rural or urban area in Malaysia. It is preferable to have FIRE INSURANCE WHETHER YOU ARE TAKING A LOAN OR NOT. Not only you can fire, but other natural and human disaster.
Nice info. to know!
Thanks!
thanks for reading and comment on my article.
Hello, interesting article. The thing with insurers is that you have to read the fine print. Not all insurers are created equal. It’s boring, but you should always read over your policy. If I am ever lucky enough to own a home, I will definitely be looking into insurance. Best to be safe.
It is never too late to learn about insurance. It becomes very handy to you one day.
A standard homeowners insurance policy generally covers the repair costs from damage caused by most natural disasters, but not all. The flooding caused by a hurricane and storm surges that occur is typically excluded in a standard policy.
Please read How to protect against Hurricane Damage with Insurances?
Thank.
Fire insurance can covers strike riot malicious damage Extention by paying an extra premium. It covers third parties damages ( other people or outsiders) other than your family member.
Yes, I total agreed with you.Thank you for the comment
thank for the compliment
Thank for the comments