PROPERTIES FIRE INSURANCE >DOUBLED FOR NO APPARENT REASON & WITHOUT OUR CONSENT

[aspenvit]

DID U ALL NOTICE THIS? 

HELL, THIS HAS HAPPENED OVER LAST 1 YEAR WITHOUT OUR CONSENT.

THOSE FIRE INSURANCES ARE MAD COMPULSORY BY THE BANKS, BUT HELL, THEY SIMPLY INCREASE THE PREMIUMS WITHOUT INFORMING US.

[aspenvit]

WELL. THEY WILL SAID, WHEN U BOUGHT A PROPERTY, IT IS IN THE STATE OF VACANT POCESSION , SO IT IS CHEAPER.  ONCE IT IS OCCUPIED, THE RISK OF FIRE IS HIGHER, THEREFORE THE PREMIUM IS HIGHER.  BUT HELL, THIS IS THE NEW THINGS THAT THE INSURANCE COMPANIES COME UP TO CHARGE US MORE, AND THIS HAS ONLY BEGUN SINCE LAST YEAR.

[aspenvit]

THE BANKS ARE TYING UP WITH THE INSURANCE COMPANIES TO RIP US OFF. DO WE HAVE A CHOICE TO CHOOSE OUR OWN FIRE INSURANCE? NOT THAT I KNOW OF.

DO WE HAVE A SAY IN HOW MUCH THE FIRE INSURANCE PREMIUM SHOULD BE? NO WE DON'T.

I BORROWED RM 900K LOAN FROM THE BANK. THE BANK INSURED MY PROPERTY AT A SUM OF 800K, AND I HAVE TO PAY A PREMIUM OF RM 2K+PER YEAR FOR A VACANT SHOTLOT.  THIS IS REALLY CRAZY.  THE FIRE INSURANCE ONLY COVER FOR THE DAMAGE TO THE BUILDING STRUCTURE, NOT ITS CONTENT. WHAT KIND OF FIRE CAN BURN DOWN A SHOPLOT AND COSTING RM 800K TO REPAIR THE BRUILDING STRUCTURE? I CAN INVITE THE INSURANCE COMPANY TO SET FIRE TO MY SHOP AND SEE HOW MUCH IT WOULD COST TO REPAIR IT, RM 20K THE MOST.

[aspenvit]

THEY INCREASED THE PREMIUMS BY >100% OVER THE LAST YEAR. THIS IS CRAZY. I DON'T KNOW WHY THE PREMIUMS INCREASED, BUT BEFORE THAT HAPPENED, I RECEIVED CALLS FROM THE INSURANCE COMPANY ASKING ME WHETHER THE BUILDING IS OCCUPIED OR NOT, AND WHAT IT IS USED FOR. SO I HAVE BEEN HONEST IN TELLING THE INSURANCE COMPANY. BUT HELL FOLLOWS. AND MIND U, THERE IS NOT EVEN ANY EXPLOSIVE OR VOLATILE FLAMMABLE MATERIALS STORED IN THE BUILDING.

[Tahi Lalat Franchis]

U may bring this problem to the attention of Bank Negara

[aspenvit]

Do we have a right to choose our own insurance company for the building structure fire insurance if the building is financed by the bank?

[aspenvit]

Do we have a right to choose our own insurance company for the building structure fire insurance if the building is financed by the bank?

I CALLED MY BANK OFFICER AND WAS TOLD THAT WE CANNOT CHOOSE OUR OWN INSURANCE COMPANY BUT HE CAN APPEAL A LOWER PREMIUM FOR ME.

SOMETHING IS WRONG THERE.  WHERE IS THE ANTI-MONOPOLY LAW  HERE?

[aspenvit]

Like that might as well triple, quadruple  or increase 50 times our insurance premium, since we cannot choose our own insurance company. 

Do u see the conflict of interest there?

[cashflow technology]

U may bring this problem to the attention of Bank Negara

 

dON'T LET them bully us.

[aspenvit]

dON'T LET them bully us.

I AM WAITING TO SEE WHAT THE BANK CAN DO FOR ME, BEFORE I HOLD A PRESS CONFERENCE, COMPLAIN TO DAP, COMPLAIN TO CONSUMER AFFAIRS, AND THE BANK NEGARA.

WHEN THAT INSURANCE COMPANY DOUBLED MY PREMIUM, I KEPT QUIET.  THEN I BOUGHT A NEW PROPERTY RECENTLY.   THE PREMIUM IS 10 TIMES MORE EXPENSIVE THAN MY OLD PREMIUMS FOR MY OTHER PROPERTIES.  THE SUM ASSURED BECOMES 4 TIMES HIGHER THAN MY OLD POLICIES, BUT THE PREMIUM IS 10 TIMES HIGHER.  THE INSURANCE COMPANY OR THE BANK IS GETTING GREEDIER AND GREEDIER.

[katak@hensem]

I AM WAITING TO SEE WHAT THE BANK CAN DO FOR ME, BEFORE I HOLD A PRESS CONFERENCE, COMPLAIN TO DAP, COMPLAIN TO CONSUMER AFFAIRS, AND THE BANK NEGARA.

WHEN THAT INSURANCE COMPANY DOUBLED MY PREMIUM, I KEPT QUIET.  THEN I BOUGHT A NEW PROPERTY RECENTLY.   THE PREMIUM IS 10 TIMES MORE EXPENSIVE THAN MY OLD PREMIUMS FOR MY OTHER PROPERTIES.  THE SUM ASSURED BECOMES 4 TIMES HIGHER THAN MY OLD POLICIES, BUT THE PREMIUM IS 10 TIMES HIGHER.  THE INSURANCE COMPANY OR THE BANK IS GETTING GREEDIER AND GREEDIER.

 

[aspenvit]

WALAU EH, AFTER I READ THE POLICY CLOSELY THE PREMIUM INCREASED TO TRIPLE MY PREVIOUS PREMIUM.

previously i was paying RM 200.80 per annum, this year i am paying RM 620 per annum.  WTF.

[aspenvit]

I AM FURIOUS NOW.

[bourse]

Let share my case here.

My housing loan settled.  When I buy the fire insurance, the agent told me that the premium cost must be able to rebuild the house. Just in case the house totally burn down.

If I short insured also ok, but the material to build the house will only going up, then i might need to top up the balance.

So, my fire insurance is definitely higher than my original purchase price.   

[aspenvit]

THEY INCREASED THE PREMIUMS BY >100% OVER THE LAST YEAR. THIS IS CRAZY. I DON'T KNOW WHY THE PREMIUMS INCREASED, BUT BEFORE THAT HAPPENED, I RECEIVED CALLS FROM THE INSURANCE COMPANY ASKING ME WHETHER THE BUILDING IS OCCUPIED OR NOT, AND WHAT IT IS USED FOR. SO I HAVE BEEN HONEST IN TELLING THE INSURANCE COMPANY. BUT HELL FOLLOWS. AND MIND U, THERE IS NOT EVEN ANY EXPLOSIVE OR VOLATILE FLAMMABLE MATERIALS STORED IN THE BUILDING.

just got confirmation from a bank officer that yes, the insurance companies have started to charge or enforce different premium rates for vacant possession and occupied possession, starting this year.

He also tell me that all insurance companies are charging the same fixed rates for vacant possession and occupied possession. 

Okay.  Now who give them the permit to charge all the same rates? Bank Negara? Why anti-monopoly law does not apply to insurance companies? Why Airasia and Mas cannot cooperate while the insurance companies can?

As I said, the premium that they charge for occupied possession is ridiculously high, 3x higher that the vacant possession.

[aspenvit]

Can someone enlighten me on one more thing.

Let say the market value of a property is RM 1 million.

If I insure the property structure against fire with an insured sum of RM 0.5 million.

if a fire broke out and the cost of repair is RM 100k. Is the insurance company liable to pay me RM 100k, or just RM50k?

[InsiderSS]

adjustor needs to check cause and whether 100k is justified. excess u pay

[aspenvit]

adjustor needs to check cause and whether 100k is justified. excess u pay

u haven't answered my question.  Excess not significant, right?

[katak@hensem]

No need pay, you say not protected. if pay, you also complain expensive. then what you want me to do? 

[aspenvit]

No need pay, you say not protected. if pay, you also complain expensive. then what you want me to do? 

i already asked bank whether i can do away the fire insurance and take the risk myself, but the bank says cannot.

[aspenvit]

when there is no competition, of course it will be expensive.

[katak@hensem]

i already asked bank whether i can do away the fire insurance and take the risk myself, but the bank says cannot.

the insurance not only cover you ma. maybe your part only kena a little bit, but your neighbour completely bungkus.  

now you say bear the responsibility, but when the real thing happens, you refuse to compensate your neighbour ma.

[InsiderSS]

u took bank loan, of course need insurance. boh kor leng bank trust you to take the risk when you dont even have the money to buy the property with cash/
my friend, common sense leh.

[katak@hensem]

u took bank loan, of course need insurance. boh kor leng bank trust you to take the risk when you dont even have the money to buy the property with cash/
my friend, common sense leh.

true also ma..... that's why insurance always exist lo. you pay small money for big money. 

[Baby]

u buy properties using loan ... meaning the property is own by bank until u pay your loan fully mar.
Tecnically bank need u to insure the proeperty to insured the loan lor.
Otherwise proepety burnt down, u no money to pay bank, bank end up with no money and no property lor.

If u own the whole shoplot meaning finish paying loan ... than is up to u to say how much want to insured lor.
Because if burnt down not insured ... nobody care. It is your shoplot mar.

So, no money dunt learn ppl to buy property lor ... buy share ... cheaper and hassle free.
Anyone got buy insurance to insured their share or not ... u know lar ... share also can get burnt mar.

 

[K$ngK$ng]

buy cash no issue anymore. But if you have tones of goods amd machinery inside bette to buy insurance. 

[aspenvit]

THE POINT IS, THEY NEVER IMPLEMENTED VACANT POSSESSION OR OCCUPIED POSSESSION BEFORE AND YET THEY SURVIVE WELL ON IT.  NOW THAT THEY TRIPLED THE PREMIUM BUT THE THE RISK REMAIN THE SAME.

THE POINT IS THERE SHOULD BE COMPETITION IN INSURANCE BUSINESSES AND NO MONOPOLY.
 

[InsiderSS]

depends on which bank u take loan. If u take loan from uob, then uniasia insurance lo, hong leong bank then hong leong assurance lo....

[katak@hensem]

THE POINT IS, THEY NEVER IMPLEMENTED VACANT POSSESSION OR OCCUPIED POSSESSION BEFORE AND YET THEY SURVIVE WELL ON IT.  NOW THAT THEY TRIPLED THE PREMIUM BUT THE THE RISK REMAIN THE SAME.

THE POINT IS THERE SHOULD BE COMPETITION IN INSURANCE BUSINESSES AND NO MONOPOLY.
 

did you consider that the price of your property is not the same like it used to be 10 years ago? your house is not car ma, the sum insured will only go higher.

[aspenvit]

did you consider that the price of your property is not the same like it used to be 10 years ago? your house is not car ma, the sum insured will only go higher.

OK THE COST OF REPAIR WILL GO UP A BIT DUE TO MATERIAL COST AND LABOUR COST, BUT DEFINITELY LESS THAT 50% OVER THE LAST 10 YEARS.  IT IS THE LAND PRICE THAT IS GETTING MORE EXPENSIVE EXPONENTIALLY.

THIS DOES NOT JUSTIFY INCREASE OF PREMIUM UP TO 300%.

[katak@hensem]

OK THE COST OF REPAIR WILL GO UP A BIT DUE TO MATERIAL COST AND LABOUR COST, BUT DEFINITELY LESS THAT 50% OVER THE LAST 10 YEARS.  IT IS THE LAND PRICE THAT IS GETTING MORE EXPENSIVE EXPONENTIALLY.

THIS DOES NOT JUSTIFY INCREASE OF PREMIUM UP TO 300%.

Maybe that tells you the price of everything will increase up to 300% soon?

[katak@hensem]

Why don't you make a stop to the nearest bank and ask them for a breakdown?

[aspenvit]

THE NEXT POINT IS THAT RECENT YEARS THE BANK HAD STEALTHILY JACKED UP THE COMPULSORY SUM INSURED WITHOUT EVER INFORMING US. 7-10 YEARS AGO, THE PROPERTIES THAT I BOUGHT WITH THE AMOUNT BORROWED FROM BANK OF RM 700K, SUM INSURED WAS ONLY RM 250K. RECENTLY I BORROWED RM 1 MILLION FROM BANK BUT THE SUM INSURED IS RM 900K FOR THIS PROPERTY, THEREFORE THE PREMIUM IS ALSO SKY HIGH.

IN SHORT, THE BANK IS NOT ONLY JACKING UP THE PREMIUM PER SUM INSURED, BUT ALSO THE SUM INSURED AS WELL, LEADING TO 10X HIGHER PREMIUM PAYABLE NOW.

AS I MENTIONED BEFORE, WHAT ON EARTH CAN THE REPAIR COST OF A EMPTY SHOP LOT WITH ONLY 4 WALLS AND A ROOF, COSTING UP TO RM 900K?

[aspenvit]

Can someone enlighten me on one more thing.

Let say the market value of a property is RM 1 million.

If I insure the property structure against fire with an insured sum of RM 0.5 million.

if a fire broke out and the cost of repair is RM 100k. Is the insurance company liable to pay me RM 100k, or just RM50k?

ANYONE KNOW THE ANSWER TO THIS?

[cashflow technology]

ANYONE KNOW THE ANSWER TO THIS?

Only 50 K.

[aspenvit]

Only 50 K.

TQ.

[aspenvit]

Maybe that tells you the price of everything will increase up to 300% soon?

WELL, THE SALARY OF SARAWAK'S MINISTERS AND YBS HAVE INCREASED 300% THIS YEAR. 

AND THE GOV IS SAYING IT CAN OR THE SELECTED PEOPLES CAN INCREASE PRICES, BUT YOU PEOPLES CANNOT.

[kllim11200]

WALAU EH, AFTER I READ THE POLICY CLOSELY THE PREMIUM INCREASED TO TRIPLE MY PREVIOUS PREMIUM.

previously i was paying RM 200.80 per annum, this year i am paying RM 620 per annum.  WTF.

Hello aspenvit,
The increase in premium is primarily due to your property has increased in value. As such the premium you pay is based on the value of the property where the sum insured has increased.

[kllim11200]

ANYONE KNOW THE ANSWER TO THIS?

50k. Condition of average applies when there is a presence of under insurance

[U.K.]

DID U ALL NOTICE THIS? 

HELL, THIS HAS HAPPENED OVER LAST 1 YEAR WITHOUT OUR CONSENT.

THOSE FIRE INSURANCES ARE MAD COMPULSORY BY THE BANKS, BUT HELL, THEY SIMPLY INCREASE THE PREMIUMS WITHOUT INFORMING US.

Because you just keep quiet and never voice out your disagreement publicly to the the bank. That's why the bank take it for granted to charge you more money. You can stage a protest outside the bank or write a complaint letter to major newspapers. Gather more people who disagree with the hike and voice out collectively. 

[aspenvit]

Because you just keep quiet and never voice out your disagreement publicly to the the bank. That's why the bank take it for granted to charge you more money. You can stage a protest outside the bank or write a complaint letter to major newspapers. Gather more people who disagree with the hike and voice out collectively. 

ACTUALLY I DEALT WITH THE BANK DIRECTLY ALREADY, IT AGREES CUT THE SUM INSURED FROM 900 K TO 500 K FOR ME. SO I KEEP QUIET FOR NOW. 

BUT BUT BUT, THEIR OCCUPIED POSSESSION INSURANCE COVERAGE RATE ARE WAY TOO EXPENSIVE. I LEAVE THAT JOB FOR OTHERS TO PROTEST. 

[aspenvit]

I STUDIES THEIR FIRE INSURANCE RATE AND COMPARED WITH PERSONAL ACCIDENT RATE, THEY ARE ABOUT THE SAME. I GUESS THE FIRE OCCURRENCE RATE AND PERSONAL ACCIDENT RATE MUST BE THE SAME.

[U.K.]

ACTUALLY I DEALT WITH THE BANK DIRECTLY ALREADY, IT AGREES CUT THE SUM INSURED FROM 900 K TO 500 K FOR ME. SO I KEEP QUIET FOR NOW. 

BUT BUT BUT, THEIR OCCUPIED POSSESSION INSURANCE COVERAGE RATE ARE WAY TOO EXPENSIVE. I LEAVE THAT JOB FOR OTHERS TO PROTEST. 

how much do you have to pay after revising the sum insured to 500k?

[alexc8]

don' listen to the bank...they are out to make a killing....insure the building only not including the land

building cost is 180 psf

[aspenvit]

don' listen to the bank...they are out to make a killing....insure the building only not including the land

building cost is 180 psf

TRUE ALSO.

[Dorky]

THE NEXT POINT IS THAT RECENT YEARS THE BANK HAD STEALTHILY JACKED UP THE COMPULSORY SUM INSURED WITHOUT EVER INFORMING US. 7-10 YEARS AGO, THE PROPERTIES THAT I BOUGHT WITH THE AMOUNT BORROWED FROM BANK OF RM 700K, SUM INSURED WAS ONLY RM 250K. RECENTLY I BORROWED RM 1 MILLION FROM BANK BUT THE SUM INSURED IS RM 900K FOR THIS PROPERTY, THEREFORE THE PREMIUM IS ALSO SKY HIGH.

IN SHORT, THE BANK IS NOT ONLY JACKING UP THE PREMIUM PER SUM INSURED, BUT ALSO THE SUM INSURED AS WELL, LEADING TO 10X HIGHER PREMIUM PAYABLE NOW.

AS I MENTIONED BEFORE, WHAT ON EARTH CAN THE REPAIR COST OF A EMPTY SHOP LOT WITH ONLY 4 WALLS AND A ROOF, COSTING UP TO RM 900K?

Your point is extremely reasonable.

Bankers and insurance salesmen will disagree because your point would hurt their commission.

Yes, the land is the priciest part of the whole asset.
And assuming there is massive inferno to burn down everything into the ground and turn to fine dust, the land being the priciest portion of the whole asset, will remain intact.
So for the sinful insurance company to insure very close to the whole asset value is not justified.
And of course when money is involved, sin and sinfulness will be the nature of the conduct, through ripoffs, scams, etc.

[U.K.]

Your point is extremely reasonable.

Bankers and insurance salesmen will disagree because your point would hurt their commission.

Yes, the land is the priciest part of the whole asset.
And assuming there is massive inferno to burn down everything into the ground and turn to fine dust, the land being the priciest portion of the whole asset, will remain intact.
So for the sinful insurance company to insure very close to the whole asset value is not justified.
And of course when money is involved, sin and sinfulness will be the nature of the conduct, through ripoffs, scams, etc.

Banks and insurance companies are very sinful businesses. I agree also. 

[aspenvit]

I GOT CONFIRMATION FROM BANK ALSO THAT THE INCREASE IN PREMIUM OF ABOUT 200% IS DUE TO A CHANGE OF STATUS FROM VACANT POSSESSION TO OCCUPIED POSSESSION.

[Dorky]

The banks always make unscrupulous changes to the rules and implement unfair policies to boost their zero value-added services.

Form example, when you buy a house, they will charge you some hundreds of RM as fee to inspect the property, which is simply done by traveling to the property and do a visual inspection and take some photos of it at different angle.
The banks and lawyer firms charge various exorbitant fees on minor things like background check, status check, or whatever check that by right is very cheap.
Anti-competition condition in the industry motivates the banks and lawyer firms to be unscrupulous.

[U.K.]

The banks always make unscrupulous changes to the rules and implement unfair policies to boost their zero value-added services.

Form example, when you buy a house, they will charge you some hundreds of RM as fee to inspect the property, which is simply done by traveling to the property and do a visual inspection and take some photos of it at different angle.
The banks and lawyer firms charge various exorbitant fees on minor things like background check, status check, or whatever check that by right is very cheap.
Anti-competition condition in the industry motivates the banks and lawyer firms to be unscrupulous.

The inspection and valuation is done and charged by a 3rd party property valuation company, not the bank.
But the bank makes it compulsory for the purchaser to buy all kinds of insurance (MLTA/ MRTA, fire insurance) and get the property price evaluated before approving the loan. (Bank want to protect their interests...)