Fire Insurance

Fire Insurance

Protect your business from fire-related damages.

There’s plenty we can do to prevent the unfortunate and unsightly event of fire. But when it does happen, we’re here to make sure your business isn’t burned, too. 

Important Notice

Under-insurance / under-coverage of your property can lead to inadequate compensation due to the application of average clause. To get a quick insurance / coverage estimate for your property (ie. residential properties, simple shop houses and shop offices), you may use the Building Cost Calculator, which is jointly developed by Persatuan Insurans Am Malaysia (PIAM) and the Malaysia Takaful Association (MTA). Do note that the calculator provides an estimate of the rebuilding cost of your property for evaluation purposes only, and does not guarantee the actual amount that the we may agree to cover your property for.

What is the scope of cover?

The fire insurance policy covers losses or damages to your insured property i.e. the building and its contents; that are caused by fire, lightning or explosion of domestic boilers and gas used for domestic purposes only during the period of insurance.

You may extend your policy to cover the following perils by paying additional premium:

  • Aircraft damage
  • Earthquake and volcanic eruption
  • Storm, tempest
  • Flood
  • Explosion
  • Impact damage
  • Bursting or overflowing of water tanks, apparatus or pipes
  • Bush / lalang fire
  • Subsidence and landslip
  • Spontaneous combustion
  • Sprinkler leakage
  • Goods and stock undergoing any heating or drying process
  • Riot, strike and malicious damage
  • Damage by falling trees or branches and objects

Note: You need to renew your fire insurance policy every year.

How much can I get insured for?

The coverage is based on the cost of restoring the damaged property or replacing it with a property that is similar in condition to that of the time when the loss occurred.

For Your Property

The current cost of reconstructing the building back to its original form, minus deduction justified for betterment.

Betterment is an addition/alteration to your property which results in it being in a better condition than before the fire incident, for e.g. remodelling the kitchen with cabinets that are more expensive than the original cabinets.

For Your Personal Belongings

The cost of replacing a new item, minus deduction for depreciation of value due to wear and tear. Your personal belongings include appliances, furniture and clothing.

How much are the premiums?

Above RM 50 Million Special Rating
PIAM* Technical Rating Committee will determine the special rating
RM 10 Million - RM 50 Million Self Rating
Premium rates are computed by Zurich using the self-rating structure provided by PIAM*
Below RM 10 Million Tariff Rating
Premium rates are as per Revised Fire Tariff (w.e.f. 1st July 2000)

* Persatuan Insurans Am Malaysia

Note: Other charges include commissions paid to the insurance agent and a stamp duty of RM 10.00.

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