Houseowner And Householder Insurance Remains Vital As Earthquakes And Floods Pose Growing Risks

Kuala Lumpur, 4 September 2025 – The recent earthquakes felt in both Sabah and Peninsular Malaysia serve as a reminder that the country is not free from seismic activity and other natural disasters. While Sabah has long been known for its active seismic zones, tremors recorded in parts of Peninsular Malaysia highlight that homeowners nationwide face real risks from earthquakes and floods.

“Houseowner and householder insurance is a comprehensive insurance policy that covers fire and other specified risks such as earthquakes, floods, and windstorms, for both home structures and contents,” said CEO of the General Insurance Association of Malaysia (PIAM), Chua Kim Soon. “Although earthquakes are less common than other natural disasters like flood in our country, Malaysians still need to be prepared for potential climate risks to strengthen disaster resilience and safeguard their financial wellbeing.”

What do homeowners need to know?

As climate events grow more unpredictable and property values rise, PIAM urges homeowners to reassess their protection strategies for their property and contents more critically. This advisory outline key considerations homeowners should be aware of to protect their most valuable asset, their home and its contents:

1. Are You Adequately Covered?

Many homeowners assume their fire insurance policy covers all risks. However, basic fire insurance policy often excludes earthquakes, floods, windstorms and other climate related risks. Most of these perils; however, can be covered with payment of additional premium. Alternatively, owners can opt for houseowner and householder insurance policy which offers better coverage including earthquake as part of its standard cover for property and contents.

Contact your insurer, agent or broker to understand and update your coverage to ensure you have adequate financial protection.

Tip 1: Shop around for best coverage based on the assessed risk as opposed to shopping around for premiums.

2. Understand Your Insurance Policy Terms

Read the fine print. Key aspects like coverage, terms and conditions including deductibles, and exclusions may vary significantly across insurance providers.

3. Underinsurance is a Common Risk

Insuring based on a property’s market value instead of rebuilding cost may result in inadequate compensation following an insured loss or event. Take the opportunity to reassess your coverage yearly, especially after renovations as the policy is to be renewed on a yearly basis. Do also consider your household contents like fitted furniture, electronics and more to ensure proper coverage or cover temporary relocation expenses.

Tip 2: For guidance, you can use our online complimentary Building Cost Calculator (BCC) to assist in determining the estimated sum to be insured for residential properties, simple shop houses and shop offices.

PIAM’s Building Cost Calculator (BCC) link: https://bcc.piam.org.my/ While this calculator serves as a useful reference, we strongly recommend consulting your insurance company, agent or broker for professional advice tailored to your needs.

4. Prepare for Natural Disasters

With rising flood and weather risks, opting for a comprehensive houseowner and householder insurance policy is increasingly important as it can provide crucial financial protection in the face of unexpected events such as earthquakes, floods, and windstorms.

5. Keep Documents Accessible

Secure digital backups of your policy, receipts, and claims documents. Fast access helps during emergencies. In the event of assistance, you may contact your insurance provider, agent or broker for assistance. For more information on general insurance providers, you may visit PIAM at www.piam.org.my or email pic@piam.org.my for assistance.

How should houseowner and householder policyholder approach the claims process?

Early notification will not only speed up the processing of the claim and may mean that less damage is caused as insurers may be able to offer loss mitigation advice or services.

1. Report the Accident (unless waived for exceptional cases)

Lodge police report as soon as possible, ideally within 24 hours of the accident. The report should detail how and when loss occurred.

2. Contact Your Insurer: Inform your insurance company about the incident as soon as possible to initiate the claims process. Most insurers have a claim reporting timeline, so timely notification is crucial or as soon as reasonably practicable.

3. Take Photos and Collect Evidence: If safe to do so, take photos of the loss scene and any damages to the property involved. You will also need to submit supporting documents which may include the following:

• Police Report
• Fire & Rescue Department Report, where applicable
• Claim Form – Obtain from your insurer and complete with details of the incident
• Property Ownership Documents – Proof of ownership
• Photographs of Damage – To support the claim
• Repair Quotation (if not a total loss) – From contractors/builders/suppliers
• Loss/Damage Inventory List for Household Content – A list of damaged or destroyed items with estimated values, brand, model and serial numbers, if these are insured
• Other Supporting Documents – As required by your insurer

Compensation is typically based on rebuilding cost. Before proceeding with any repair, including emergency work, obtain written approval from your insurer as unauthorised work may not be covered by your fire or houseowner policy.

If you are caught in an earthquake, we recommend these 3 steps to protect yourself:

• Drop to the floor to reduce the chance of being hit by falling objects.
• Take shelter under a secure piece of furniture and stay on hands and knees to protect vital organs.
• Stay put until the shaking stops.