Homeowners have been advised to check whether their insurance policies actually protect them from earthquakes and floods, following a series of quakes that struck Johor.
The General Insurance Association of Malaysia (PIAM) said many basic fire insurance plans do not cover these disasters.
In a statement, PIAM CEO Chua Kim Soon said the recent tremors felt in Sabah and parts of the peninsula serves as a wake up call for property owners to check the current level of protection.
He said while earthquakes were less common than floods in Malaysia, they remained a real threat, especially as weather patterns grew more unpredictable.
Chua said many assumed their homes were fully protected when, in reality, natural disasters such as earthquakes, floods and windstorms were often excluded unless additional cover was bought.
“A basic fire policy might not help if your home is damaged by an earthquake or flood. Malaysians must take the time to check their policies and make sure they are truly protected.”
Chua urged homeowners to speak to their insurers, agents or brokers to understand what was included in their current policies and whether a more comprehensive house owner and householder policy would be a better option.
He said taking up a “perils” option would provide wider protection, including for earthquakes.
Chua also warned of the risk of underinsurance, where homeowners insure based on market value rather than the cost of rebuilding. He said this could lead to lower payouts when making a claim.
He also urged homeowners to use PIAM’s free Building Cost Calculator at bcc.piam.org.my to estimate the correct insured amount, but added that professional advice tailored to individual needs remains important.
Chua said it was important to review insurance policies as floods and other extreme weather events becomes more common.
He also reminded policyholders to read the fine print, keep digital copies of all key documents, and report any incidents to their insurer as soon as possible to avoid delays in claims.
Last night, Johor was hit with another minor earthquake, this time with a 2.9-magnitude reading in Sri Medan, Parit Sulong. Previously, it was reported that six minor earthquakes had been recorded in Segamat since Aug 24.
In May, several districts in Sabah, including Tawau, Lahad Datu and Semporna, reported tremors following a 6.1-magnitude quake in Sulawesi.
