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 Insurance Talk V4!, Anything and everything about Insurance

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mushigen
post Nov 30 2017, 12:02 PM

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Would like to ask about insurance for shop lot (ground floor is rented out to a hp business, owners staying at first floor).
The value is about RM800-900k.

Currently, the insurance coverage is RM250k for the shop lot, with 24 * RM2000 (rental loss) and RM30k furnishing.

Questions:
1. Is there any guideline in increasing the coverage for the shop lot? It sounds too little to me.
However, the servicing agent says RM250k should be enough to rebuild the whole unit from scratch if burned down and insurance company will not pay anything more than the cost of building it, so I will just be wasting money if the coverage is increased even if the shop lot can fetch millions in the open market.

2. Is there any benefit in insuring the furnishing, considering the depreciation? In current coverage of RM30k, will the insurance company compensate me RM30k for the furnishing if the whole shop is burned down?

3. What other advice can you experts give? The renewal is due in Mar next year.
mushigen
post Nov 30 2017, 04:13 PM

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QUOTE(lifebalance @ Nov 30 2017, 03:46 PM)
You can take a rule of thumb of 5% appreciation in Asset. You may also get a valuer to value your property to find out what's the market value and insure 80% of the market value.

It's important to make sure your insurance is sufficient otherwise if your insurance is underinsured then the payout amount is prorated.

Which end up you may be getting less from your insurance and not the full amount (250k) in this as you mentioned.
It's important unless you don't mind to buy everything again without the insurance money. 30k maybe a lot of money for just furnishing alone.

*
Thank you for your clarification. As for market value of the property, can I just use a rough guide, say, how much the neighbour's unit is sold for?

To think that the current agent told us that insurance only covers the cost of rebuilding the property and not the land the building sits on.
mushigen
post Dec 4 2017, 11:45 PM

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QUOTE(lifebalance @ Nov 30 2017, 04:26 PM)
You can't really take the neighbor's unit unless it's a same unit as yours such as renovation involved and different size which may differ your property value.

As for cost of rebuilding the building, normally that's the case of Fire Insurance because they insure on the building as even fire burns down your property, your "land" that your property sit on don't get "burned" further.

The price of your property valuation is already included the value of the Land + Building. 20% for land, 80% for building.
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QUOTE(JIUHWEI @ Dec 4 2017, 04:47 PM)
Dear mushigen,

Your current agent is correct. Your land doesn't burn down.
Should your property burn to the ground, your losses are still the cost to rebuild it, removal of debris, consequential losses (if any). In short, the physical structure of the building, not the market price of your property including the land.

I deal with residential properties, strata titles, commercial properties as well as factories. All are insured based on the cost to rebuild, not based on speculated market price for those properties.

Perhaps what you want to read this up: https://www.imoney.my/articles/fire-insurance-in-malaysia
*
Dear gents, thank you for your replies.
Assume current property value = RM800k
Rental collected from the ground floor shop = RM2200p/m
Furnishing = RM30k
Cost of rebuilding the shoplot from ground, say, RM300,000.

Hence, in my case what would be the ideal insured value? RM300k for the building, loss of rental for 2 years, and RM30k furnishing? Will there be a case of underinsured where the insurer pays a pro-rated amount, like in the case of under declaring our vehicle's insured value for comprehensive motor vehicle insurance?
mushigen
post Sep 21 2018, 10:00 PM

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Dear All,
I just got my new Honda car for one month. I'm extremely disappointed with the insurance company that insures my car under Honda Insurance Program (HIP). If I face so many admin issues from Day 1, I cannot imagine the nightmare I will face when making a claim.

Can sifus advise if I am able to buy a new insurance from another company and then cancel the original insurance to get the refund and NCB withdrawal?

Asking because when I requested to cancel my policy for my old car which I traded in for this Honda, the insurance company insisted on having road tax cancellation proof from JPJ. I obviously cannot cancel the existing road tax of my new car... or maybe I have to do so?
mushigen
post Oct 17 2018, 06:27 PM

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Dear all,
I have a Prudential policy which medical insurance section covers me till 80 years old.

I'm thinking that coverage till 80 may not be sufficient, so looking at upgrading to 100 years old. Had a chat with my agent, was told that if I upgrade, the additional premium would cost roughly RM200-300, which is 50% of my existing premium.

Is upgrading just the medical coverage to 100 years old that expensive?

Is it generally better off for me to look for a fresh policy that has coverage up to 100 years old rather than upgrading this policy?

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