Insurance Coverage for Floods

In the light of the recent floods in Kampung Subang, Shah Alam and TTDI Jaya areas, there have been a number of inquiries regarding insurance coverage for floods.

My principal, American Home Assurance Company, is pleased to advise that there is NO RESTRICTION to obtain extension for this cover.

MOTORCAR INSURANCE
The basic Motor policy does not cover flood. In order to protect the vehicle against damage cased by flood, the policy has to be extended to include Special Perils. The rate is 0.50% of the sum insured. This rate applies regardless of whether the cover is taken from inception of the policy or mid-term, i.e. the rate is a flat-rate.

FIRE INSURANCE
The basic Fire policy also does not cover flood. Again the policy may be extended to include flood cover. The rate is 0.086% of the sum insured. Please note that this cover does not extend to include loss or damage caused by subsidence or landslip.

HOUSEOWNER/HOUSEHOLDER (HOUSEHOLD CONTENTS) INSURANCE
Flood cover is included under the basic policy. No further extension for flood is required. Storm/tempest is also covered. However, here too, damage caused by subsidence or landslip is not covered.

We urge all our clients to take up this cover in order to be adequately protected. Be it your cars, your homes or your household contents, it is better to be safe than sorry.

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