{"id":60375,"date":"2024-11-29T10:23:26","date_gmt":"2024-11-29T02:23:26","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=60375"},"modified":"2025-02-19T18:18:39","modified_gmt":"2025-02-19T10:18:39","slug":"flood-coverage-house-car-guide","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/flood-coverage-house-car-guide","title":{"rendered":"Here\u2019s Everything You Need To Know About Flood Insurance Coverage"},"content":{"rendered":"

Just like in the western countries, there are four seasons in Malaysia as well. But instead of having spring, summer, fall and winter, we in Malaysia have the dengue season, the haze season, the durian season, and the flood season.<\/span><\/p>\n

It might sound humorous, but unfortunately it’s very true. And right now, we\u2019re fully in the flood season<\/span>. The correct term is actually the monsoon season, but for most Malaysians, this means \u2018rain and flood\u2019.<\/span><\/p>\n

\"flood<\/a><\/p>\n

It\u2019s a fact that in Malaysia, floods are something that we can expect to happen almost annually. Which is why in this article, we\u2019re going to talk about flood coverage for both your house and cars.<\/span><\/p>\n

<\/span>What is flood coverage?<\/span><\/h2>\n

The first thing we\u2019re going to do in this article is simple, to properly explain to you what flood coverage means in terms of insurance.<\/span><\/p>\n

And thankfully, the meaning is as straightforward as can be, as flood coverage basically means that your property, whether your house or your car, is protected in case it is affected by floods.<\/span><\/p>\n

If your property is protected by flood coverage, the insurance will compensate you for any losses incurred due to flooding.\u00a0<\/span><\/p>\n

This point is where most people fail to act on getting proper insurance coverage. For example, in a DOSM survey on the residents affected by the floods in Segamat, Johor in January 2022, less than 5% of those affected had any form of car, property or home insurance coverage.<\/span><\/p>\n

\"\"<\/a>

Source: <\/span><\/i>DOSM<\/span><\/i><\/a><\/i><\/p><\/div>\n

<\/span>Is your house\/car protected by default?<\/span><\/h2>\n

Okay, so now we understand that a flood protection coverage insurance means that your property, whether it is your house or car, will be protected in case of any flooding damage.<\/span><\/p>\n

But is it something that comes by default when you purchase your house or car?<\/span><\/p>\n

The simple answer to that question is, it varies on a case-to-case basis.<\/span><\/p>\n

The long answer however, let me explain.<\/span><\/p>\n

House<\/h4>\n

In general, the basic home insurance policy only includes protection from fire, lightning, and explosions. This means that flood protection is not included in your basic home insurance policy.<\/span><\/p>\n

However, due to the fact that the bank will want to protect their own interest as well, there is a possibility that your basic home insurance policy will include flood coverage, especially if your house is located in a location that is deemed to be prone to floods.<\/span><\/p>\n

This is because if the flood causes your house to collapse, the bank will not be able to seize or auction your house if your house is destroyed. So for your house, it\u2019s better for you to contact your bank and get the full details of your home insurance policy.<\/span><\/p>\n

Car<\/h4>\n

Now for cars, the answer is pretty much straightforward. In your basic car insurance policy, you are protected from loss or damage to your own vehicle due to accident, fire and theft, third-party death or bodily injury, and third-party property damage or loss.<\/span><\/p>\n

If you want your car to be protected from flood-related damage, then you will have to add on a special peril coverage, which will protect your car from any loss or damage caused by flood, storm, typhoon, landslide and other acts of nature.<\/span><\/p>\n

Read More: <\/span>Things Your Car Insurance Does (And Does Not) Cover<\/span><\/a><\/p>\n

<\/span>How much does it cost to add on flood coverage?<\/span><\/h2>\n

We\u2019ve made it clear that for both houses and cars, typically flood protection coverage is not included in your basic default insurance policy.<\/span><\/p>\n

Which is why in this section, we\u2019re going to have a look at how much it will cost for you to add on flood protection coverage to your basic insurance policy.<\/span><\/p>\n

Car<\/b><\/h4>\n

As mentioned above, flood protection coverage doesn\u2019t come as a standalone for car insurance. So if you want to add on flood protection to your vehicle\u2019s insurance, you will have to add on the special perils coverage to your basic car insurance policy.<\/span><\/p>\n

The addition of the special perils package usually cost an additional premium ranging from 0.2% to 0.5% of the sum insured. For example, if the vehicle is insured for RM50,000, the additional premium cost for the special perils coverage will be about RM250.<\/p>\n

House<\/b><\/h4>\n

For houses however, it\u2019s a lot more complicated than that. If you\u2019ve contacted your bank and made sure that your home insurance policy does not include flood protection coverage, let\u2019s break down how much it will cost you.<\/span><\/p>\n

Okay, the first thing you need to know regarding a home insurance policy is that there is <\/span>three basic types of home insurance<\/span><\/a>, which is;<\/span><\/b><\/p>\n