Contrary to popular belief, floods are not the highest risk Jakartans prone to. If you still think so, carry on reading.
According to Fire and Rescue of Jakarta region, 246 fire incidents happened in the region in 2016 only with 175 cases caused by electrical short circuits. The number has decreased drastically from 1481 cases in 2015, yet the risk of fire is still high. Fire incident can happen to anyone, and people who do business in their houses are at double stake as there is double usage of the house.
If you still hesitant to apply for fire insurance, here are five things you should consider further:
1. Avoid bankruptcy
It is not uncommon for people to develop business from their own home as it saves time and money for gas. Yet when it comes to fire incident, the house/business owner may face double risk; for their residence and business place. Based on Fire and Rescue Jakarta’s data, house carry the highest prone of fire with 43% of the cases with average loss of IDR 200 million per annum. Considering the density of housing in Jakarta, the number may increase any time. Hence, the loss that may impact the victim may be doubled when the house is used for business too. Thus, having the house covered by insurance means protecting the business as well
2. Damage Goods Replacement
Smoke detectors may warn the residents of the fire incidents but cannot stop them. When the fire has spread, it will be difficult to escape the house, leave alone saving valuable items. Fire insurance will cover the loss of damaged and valuable items as well as the building itself in the incident. Cases when the cause of fire is house owner’s omission are exception.
3. Prevention from Unexpected Events
Fire insurance not exclusively useful for fire incidents only. Unexpected events to your house such as plane crash, lightning struck, and riot can also be covered.
4. Temporary Residence
If something unfortunate happened to your insurance covered house, you will be relocated to a temporary residence during the renovation, depends on the policy and availability.
5. Affordable Fees
If finance is your main consideration, try to compare the fee and the benefit you can gain from the insurance. Indonesian Fire Insurance Standard policy is 0,5 per mile from the total asset. For example, if you own a house worth IDR 500 million, the premium you will need to pay is 0,5 / 1000 x 500 million, makes IDR 250.000 per year. If you still hesitant, ask for more information or consult your trusted agent.
After knowing those facts, does fire insurance still sound unnecessary for you? Parolamas will help you protect your beloved house inclusive of all the valuable items inside from many unfortunate events; from fire, plane crash, lightning strike, to civilian turmoil*.
Call our Call Centre at 1500-554 for further information and other products inquiry.