A survey conducted by Zurich Malaysia found that 59% of homeowners are not covered for fire damage. This is concerning as the Fire and Rescue Department reported receiving 38,865 calls about fires in 2020, an average of a call every 14 minutes. The losses were estimated at RM2.25 billion compared to the RM3.61 billion of 2019.
Of the total number, 4,599 were fires involving building and its content, and 1,239 of which were caused by electrical faults while 342 were by gas or kerosene stoves. Other causes were cigarette buds, mosquito coils, candles, and joss sticks.
And with Malaysia facing annual, cyclical monsoon seasons, it is surprising that two-thirds (74%) of homeowners have no coverage against flood damage. The National Disaster Management Agency (NADMA) estimates 4.8 million people live in flood-risk areas throughout the country. During the northeast monsoon of 2020-2021, floods displaced 42,947 people, affecting 11,973 families.
Malaysia being home to almost 5.8 million residential properties, the survey alarmingly found that overall only one in two homes are covered by home insurance or takaful for potential damages.
Furthermore, 43% of homeowners are unaware that home content is not necessarily covered under home insurance or takaful. Home content includes furniture such as tables and chairs, appliances, computers, and mobile devices.
One in three (33%) insured homeowners do not have home content protection. And for those who do, 13% purchased separate plans specifically to cover their home content. This figure may be higher as a quarter (25%) of insured homeowners are unsure of what their existing home insurance or takaful cover.
Zurich Malaysia Country Head Junior Cho said, “We have heard the saying ‘The home is where the heart is’ or ‘There is no place like home’. Our homes should be a safe space for ourselves and our loved ones to live, learn and play. There needs to be greater effort and communication to inform existing and potential homeowners of the types of insurance or takaful suitable to protect their assets and sustain their way of life. Having that peace of mind knowing that the roof over their loved ones is protected will help them fulfil their potential in life.”
SUMMARY OF THE SURVEY
- 50% of homes are not covered by insurance or takaful
- 59% of homes are not covered for fire damage
- 74% of homes are not covered for flood damage
- 43% of homeowners are unaware that home content is not necessarily covered under home insurance or takaful
- Of the insured homeowners, 33% are not covered for home content loss and 25% do not know what their existing home insurance or takaful cover
Conducted in September 2021, 1,201 Malaysians nationwide took part in the Impact of Pandemic on Protection survey. It is an initiative by Zurich Malaysia to better understand local consumers and their needs to be able to design innovative protection plans and create a brighter future together.
