Condominium Insurance for the Real Estate Industry in Malaysia.
The real estate industry is one of the biggest industries in Malaysia. For that, the industry possesses specific insurance challenges that are wholly unique to only the industry.
With the number of cases filed against Property Managers increasing every year, a few of the common cases do include a Breach of Trust when said manager disappears with management fees, as well as incompetence in managing the property.
However, the areas that will be focused on here is the Insurance for Condominiums.
What is Insurance for Condominiums?
Insurance for Condominiums are considered one of the most competitive insurance for an Insurance Broker/Financial Advisor/Agent to procure. This is because more often than not, the insurance is purchased by either by the condo management body or the JMB of the condominium itself.
Majority of time, the condominium insurance will be purchased on Net Premium, with commission deducted from the main policy.
What Type Of Insurance You Need
Having a Fire Insurance policy for your condominium building insures coverage in the event of accidental damages that may affect permanent fixtures and fittings, renovation, outbuildings, swimming pool, guardhouse and others. Majority of condominium sum insured totals up to RM10 Million and above.
Now with the latest ruling by Bank Negara, Fire Insurance rates will be lowered if the condominium is equipped with the latest security features and safety facilities.
Fire insurance can also be extended to cover other fire perils which is explained in the article link………………
Majority of insurance companies offers the Package Policy as part of their condominium insurance package offering. Package policy is defined as number of policies that is bought together at a cheaper price than a single insurance policy.
A Package Policy would can be comprised of any, if not all, the insurance below:
- Money Insurance
- Burglary Insurance
- Plate Glass Insurance
- Fidelity Guarantee
- Machinery Breakdown
- All-Risk Insurance
- Public Liability
- Personal Accident
Errors and Omission
As part of the Condominium Insurance offering, Errors and Omission policy insures you in the event of any misconduct done by the representatives of the condominium as Joint Management Bodies (JMB) or Joint Management Committee (JMC).
As a number of condominium buyers are repeat buyers and investors, the onus is on the JMB or JMC to provide the professional service.
For instance, if the JMB has yet to receive the maintenance fees from the resident, and thus decides to bar the residents’ access cards until payment is received, the resident then can exercise his/her right to sue the JMB/JMC for that action.
Other forms of coverage provided by errors and omission policy are:
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