Know Your Fire Insurance Cover | On Bush and Lalang Fire

Know your Fire Insurance Policy coverage

Some of the readers of my blogsite emailed me requesting for some simple write-ups to help improve their understanding of what aspect is and isn’t covered in the standard Fire Insurance policy that average Malaysian (individual or companies) buys to protect their property. And, how best those uncovered aspects be effectively insured.

Taking cue from this…. and the current very dry and hazy, as well as hot weather in most parts of the country here is a “simple write-up” in regards to standard fire insurance policy coverage concerning losses arising from bush (or lalang) fire.

First and foremost it is important for you to know if you have bought a Fire Insurance or A Householders/Houseowners Insurance.

Fire Insurance Policy

If you have purchased or about to purchase a fire insurance policy to insured your property please turn to the particular page containing condition 8. Effective this is section on exclusion, and specifically focus on 8(i):
8.  Unless otherwise expressly stated in the Policy this Insurance does not cover:……….(i) Any loss or damage occasioned by or through or in consequence of the burning, whether accidental or otherwise, of forests, bush, lalang, prairie, pampas or jungle, and the clearing of lands by fire.

“….the wordings as registered in 8 (i) attempt to have an all inclusive exclusion on fire loss or damage to property insured as a result (directly or otherwise) of forest, jungle, bush…. fire spreading. Meaning is simple – no cover if such nature of fire spread and damaged the property.”

Option to extend coverage – You do have an option to endorse into your Fire Insurance policy to include coverage for Bush or Lalang fire:
9. BUSH/LALANG FIRE

a) Rate : 0.005%

b) Endorsement Wording

In consideration of an additional premium, the Company hereby agree and declare that notwithstanding anything to the contrary contained in Condition 8(i) of the Policy, the insurance is extended under Item No………… to cover loss or damage caused by bush/lalang fire (provided that during the currency of this Policy every reasonable effort shall be made to keep the Insured’s ground free from lalang and undergrowth).

Subject otherwise to the terms and conditions of the policy.

 

 

 

 

Householders/Houseowners Insurance

However, if you have decided to buy a more comprehensive coverage like the Householders or Houseowners Insurance policy then there is no exclusion in respect of losses to property insured arising from bush or lalang fire – even subterranean fire is covered.

I hope you find this useful information.

Related Posts with Thumbnails

3 comments for “Know Your Fire Insurance Cover | On Bush and Lalang Fire

  1. Anonymous
    April 19, 2014 at 10:07

    Condition precent to Insurer Liability
    – Insured’s ground free from lalang and undergrowth

    If Insured’s ground 100% free from lalang and undergrowth, why we still need to take up Bush Lalang extension?

Leave a Reply