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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
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.
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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.
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?
Anyone wants to answer this?
You don’t have to unless your house is surrounded by bushes and lalang outside the property parameters.