15/06/2022
Malaysia Strata Title Insurance Hotline +6011-12239838
Malaysia Strata Insurance
Shared By
Anthony Chin
Chairman of JMBIM
Malaysia JMB Insurance Organisation (JMBIM)
www.jmbinsurance.com.my
+603-92863323
+6011-12239838 (Whatsapp)
Malaysia Strata Insurance, Malaysia Strata Title Insurance, Malaysia JMB Insurance,
Residential or Commercial strata insurance, also called body corporate insurance, covers common contents and property under the management of a strata title or body corporate entity.
Owners of strata units typically share the premium costs of strata insurance as part of their strata fees and liabilities.
Strata insurance is mandatory and must also provide public liability covering people that may be injured on common property.
Each state and territory has different legislative requirements that deal with insurance for strata title properties.
Check that your insurance meets those legislative requirements. Your Body Corporate has a duty to insure the property and make sure the policy purchased meets the minimum legislative requirements.
What does strata insurance cover?
Strata insurance generally covers the building and common property and contents as defined on the title for the property.
This might include common areas, garden equipment, wiring, lifts, swimming pools, car parks, walls, windows, gardens, ceilings and floors. These policies often have to cover common property that the average home policy does not.
Other common property that you might find is covered under strata insurance may include some of the fixed parts of your unit, such as ducted air conditioning, but it will not cover everything.
If you own or lease a strata property you should read the policy carefully so that you understand what is not covered in your unit.
What does strata insurance typically NOT cover?
Strata insurance covers only common or shared property and may list certain exclusions, such as coverage against landslip or flood damage, or for the property’s fencing.
It is important to remember this type of insurance doesn’t cover the contents and personal items of unit householder residents.
Make sure you have appropriate contents cover for your belongings, and for those other things strata insurance does not protect.
How much excess should we agree to?
Ask your strata manager or body corporate about the level of excess that has been negotiated with the insurer.
It may help to work out how much it would cost to repair and rebuild the property in the event of a natural disaster, look at the limits in the policy, and work out from that how much excess the owners are prepared to pay.
What factors contribute to the premium?
In general, strata insurance costs the same or less for each unit owner than the premium paid by the owner of a stand-alone residence in the same area.
Each strata insurer develops and offers a unique commercial product in accordance with its underwriting appetite. Some common factors contributing to the premium include:
Mandatory requirements of state-based law
Government taxes on insurance (stamp duty and GST)
The age and condition of the building
The replacement cost of the building
The risk profile of the location
The claims history of the strata complex
The vulnerability of the insured property to an insured event (age, building codes, building design and materials)
Commercial activities carried out on the premises, such as holiday letting
Fee and commissions from agents
The level of excess payment selected by the body corporate, payable at the time of a claim
The costs of common property, for example car parks, stairwells, fire protection systems, lifts and pools.
The Joint Management Body (JMB) or Management Corporation (MC) must insured the following insurance:
1. Fire & All perils Insurance (Min perils Subsidence & Landslip, RSMD & BOW)
Building - For all the units that is individually own including all the common property.
In this case when the purchaser have a Loan with the Bank, the purchaser need not buy an additional insurance and can use the individual "Certificate of Insurance" issued from the Master policy.
It should include the following clauses:-
Reinstatement Value (valuation report by an accredited quantity surveyor at least once in 5 years)
Removal of Debris
Architect & surveyor Fee
Rent Clause
2. Public Liability Insurance
Legal liability to pay compensation for accidental bodily injury or accidental damage to the property to the Visitors for using the common property of the Building.
Under Section 4 Establishment of a Joint Management Body
(2) The Body established by subsection (1) shall be a body corporate having perpetual succession and a common seal.
(3) The Body may sue and be sued in its name.
(4) The Body shall comprise the developer and the purchasers.
Interpretation:
As the JMB is a body corporate the volunteered committee members can now be sued by the purchasers for Breach of Duty. An E&O or a PL policy to protected the personal liability of the individual committee.
3. Error & Ommission or Professional Liability Insurance
The Insurer will pay on behalf of any Insured all Damages resulting from any Claim for any Breach of Duty of the Insured.
To find an malaysia insurer that offers these types of policies, please contact JMBIM Hotline +6011-12239838
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The Pacific Strata Insurance
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QBE Strata Insurance
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RHB Strata Insurance
Underwritten By
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Tokio Marine Malaysia Strata Insurance
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Zurich Malaysia Strata Insurance
Underwritten By
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Malaysia JMB Insurance Organization (JMBIM)
Your Trusted Malaysia Strata Insurance and JMB Insurance Risk Management Advisory Organization
Head Office
158-3-7, Blok 158, Kompleks Maluri,
Jalan Jejaka, Taman Maluri, Cheras,
55100 Kuala Lumour, Malaysia.
(O) +603-9286 3323
(F) +603-9282 3232
(E) [email protected]
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