Each year, the heavy rainfall between November and February brings about major flooding. In 2021, the Malaysia government declared the December flood a "once in a century" disaster compared to the 1971 Kuala Lumpur Floods, which affected 180,000 people and killed 32. Flooding remains the country’s most frequent and severe natural disaster.Despite the devastating impacts of annual floods on people and property, many Malaysians are underinsured against damage from floods. With around 5 million Malaysians living and working in flood-prone areas, this is a major challenge for the insurance industry. This article unpacks how you can ensure you are adequately covered in the event of flood damage.Flood Coverage in MalaysiaFlood Coverage is optional under standard insurance policies for homes and motor vehicles. Ahead of the monsoon conditions, Persatuan Insurans Am Malaysia (PIAM) and Malaysia Takaful Association (MTA) have strongly encouraged individuals and companies to take time to review the adequacy of their coverage.There are two coverage options for flood damage in Malaysia which are outlined below:

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1. Home Flood Insurance

Source: www.etiqa.blog

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2. Motor Insurance

• Flood
• Extended Coverage- Act of Gods (volcanoes, landslides, trees, lightning strikes etc.)

As shown in the table below, these comparison rates are for the total insured sum, but certain insurance providers allow you to determine the sum insured (lower if you want), which comes with different rates. Certain special perils coverage options are limited in that some only cover floods, while others have expanded coverage to include other acts of God (such as damage from volcanoes, landslides, Fallen trees, and lightning strikes, etc.)

Source: paulton.org

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While risk transfer through insurance is important, it is also essential to build resilience through activities such as town planning and flood mitigation projects as being undertaken by The Department of Irrigation and Drainage.With you all the wayFor a review of your coverage adequacy or to find out more about protection against floods and other natural disasters, please reach out to our MP Honan corporate team.Chermaine Yapchermaine.yap@mpinsb.com.myUmmi Kalsum Abdullahummikalsum@mpinsb.com.my