Thursday, May 19, 2016

Condominium and Fire Insurance

Most condo-owners don't buy fire insurance for condominium as it is not compulsory, unlike Car Insurance, where you have to buy first, in order to renew the road tax.

The Management Office or JMB will have it covered. OR the Bank will have it covered (because of the property loan).

However, the question is, is it adequate?

Most of the time, Management Office or Bank will only cover minimum, or just the developer unit, i.e. your furnishing, renovation etc are not covered. Further, contents inside the Condominium will never be covered under those basic fire policy bought by the Management Office / JMB or Bank.

Owner are therefore encourage to buy their own "Fire Insurance" (on building and renovation etc) as well as "Houseowner/Householder Insurance" for the content inside the Condominium as well as other benefits attached to it.

If you are tenant but not the owner, you still can buy "Houseowner/Householder Insurance" to cover the content inside the Condominium.

So, What is "Content"?

  • Furniture and lighting
  • Electrical and Electronic Appliances
  • Personal Effects like watch, cloths, jewelry etc.

Please bear in mind, not everything are covered by default, exclusion always there when comes to insurance products, example including but not limited to:-

  • CASH (except some with product comes with limited Loss of Cash of RM1,000 only)
  • Jewelry (including gold, silver, platinum articles etc) can only up to 1/3 of the Sum Insured.*
  • Theft by domestic servant or without forcible violent entry / exit* 
* some exclusion may be included with additional premium. After all, for insurance company, everything can be insured as long as premium is adequate and their underwriter accepts it.