SHAH ALAM - The devastating gas pipeline explosion in Putra Heights on Tuesday has left many residents grappling with significant damage.
According to reports, the blast damaged 190 homes, 148 cars and 12 motorcycles, leaving more than 100 people injured.
As residents begin to assess the aftermath, many are turning to insurance companies to understand what coverage is available for such a catastrophic event.
However, dealing with insurance matters can be overwhelming, especially when unexpected incidents like this occur.
Here’s a look at the main types of insurance that could potentially provide coverage in disasters like the Putra Heights fire.
Basic fire policy
A standard fire insurance policy primarily covers damages caused by fire and lightning.
However, it can be extended to include other perils such as explosions, earthquakes and floods by paying additional premiums.
Given the nature of the Putra Heights incident, policyholders should verify if their fire insurance includes coverage for explosions.
Houseowner policy
This policy provides comprehensive protection for the structure of a residential property.
It usually covers a wide range of perils including fire, lightning, explosions, floods and even impacts from vehicles or fallen trees.
Homeowners should ensure that the sum insured accurately reflects current rebuilding costs, especially if the property has been renovated.
For those with mortgages, it is also important to check that the coverage aligns with lender requirements.
Householder policy
While the houseowner policy protects the building itself, the householder policy covers the contents within—such as furniture, appliances and personal belongings.
This policy is crucial for those who may have lost valuable items in the explosion. Like with other policies, it is important to check for any exclusions and ensure coverage includes perils like explosions and fire.
Special Perils Motor Insurance
A standard motor insurance policy might not cover damages from natural disasters or unforeseen events like explosions.
Vehicle owners can opt for special perils coverage, which includes protection against floods, storms and other specified risks.
Given that 148 vehicles were reported damaged in the Putra Heights fire, it is advisable for vehicle owners to review and consider upgrading their motor insurance coverage.
Policyholders should lodge a police report and contact their insurance provider as soon as possible to initiate claims.
Personal accident insurance
This insurance provides compensation for injuries, disabilities, or death resulting from accidents.
With over 100 individuals reported to be injured in the Putra Heights fire, those with personal accident policies may be eligible for claims to cover medical expenses and loss of income during recovery.
Policyholders should make it a habit to review their insurance policies regularly to ensure the coverage still suits their current needs and sufficiently protects against potential risks.
It is also important to fully understand any exclusions that might apply, as these can affect the outcome of a claim. Keeping thorough documentation such as records of insured items, updated property valuations and any communication with insurers can significantly streamline the claims process.
For added clarity and peace of mind, it is wise to consult with a licensed insurance agent or broker who can explain the fine print and help explore options for additional protection if needed.
Check with your developer or management office
In some cases, developers or joint management bodies (JMBs) of residential communities take out insurance on behalf of homeowners.
This is common for strata properties like condominiums or gated communities. Affected residents should contact their management to ask about any group insurance coverage that may apply.
What if you are not insured?
For uninsured residents, the government or local authorities may provide limited forms of aid.
In previous disasters, assistance has come in the form of disaster relief funds, temporary housing, or one-off compensation, though this often depends on the severity of the event and government discretion.
While no one can predict a disaster, understanding your insurance options can make all the difference when tragedy strikes.
Public liability insurance (for businesses)
If any small businesses or shops were affected by the blast, public liability or business interruption insurance might help cover losses. This type of policy compensates for damage to property, third-party injury and lost income due to a covered event.
Prepare now
In light of the Putra Heights tragedy, it is important for residents and property owners to proactively manage their insurance portfolios.
Ensuring comprehensive coverage can provide financial relief and support during unforeseen disasters.