Kuala lumpur: Standard house owner and fire insurance policies in Malaysia cover specified perils, including fire damage, 'regardless of the ignition source.' This is subject to the policy terms, conditions, and exclusions, and provided there is no fraud, deliberate act, or other applicable breach of policy conditions.
According to BERNAMA News Agency, the General Insurance Association of Malaysia (PIAM) has addressed key concerns surrounding electric vehicle (EV) charging risks, policy coverage limits, and compliance requirements under standard Malaysian motor and property (home/fire) insurance policies. This followed a recent fire in Cheras involving an EV home charger that reportedly resulted in extensive property damage.
The association's chief executive officer, Chua Kim Soon, explained that permanently installed (hard-wired) EV chargers might be categorised under the 'buildings' section of a home policy as fixtures and fittings, while unattached or portable charging cables typically fall under specialised EV motor insurance policies or add-on packages offered by insurers.
Chua stated that insurers require homeowners to take reasonable precautions and maintain electrical safety standards. In assessing claims, insurers will evaluate official investigation reports such as those from the fire department to rule out deliberate acts, such as arson, fraud, or non-compliance with statutory regulations, for example, illegal, uncertified electrical modifications or installations.
He advised homeowners to notify their insurers upon installing a permanent EV charger, as declaring electrical upgrades ensures the property's sum insured reflects current rebuilding costs and helps provide clarity on the policy's coverage during the claims process. Property owners should verify that their policy sum insured reflects updated rebuilding costs, accounting for home modifications and modern fixtures.
Given the potential for fire or electrical incidents to spread to adjacent properties, particularly in terrace homes or high-rise residences, homeowners should evaluate their public liability limits. Chua noted that while standard house owner policies generally provide a limit of RM50,000, policyholders can purchase optional extensions to increase this liability limit.
In addition, Chua recommended that EV owners review their motor and home insurance policies to address potential gaps in coverage, ensuring comprehensive protection for the vehicle, charging equipment, and residential structure.