Homeowners Face Damage, Prompting Insurance Claims and Highlighting Need for Coverage in Malaysia

In Segamat, Johor, lawyer Poon Ching Yee was preparing breakfast when a sudden, loud bang startled her. The sound was so intense, it was as if something substantial had fallen from the sky or crashed from her roof. The noise, which was also heard by her family members residing elsewhere in Segamat, caused her dog to bark incessantly.

Within moments, Poon's husband found online news confirming an earthquake. The 37-year-old expressed her surprise, stating she never anticipated being affected by an earthquake. The earthquake and subsequent aftershocks widened pre-existing hairline cracks in their home, with one crack becoming so severe it created a hole large enough to see into her neighbor's house.

Poon's bank advised her to file an insurance claim, as her plan should cover the damage. However, she noted that her case might be different due to the pre-existing cracks, and the outcome would depend on the assessors' evaluation. The 4.1-magnitude Segamat earthquake on August 24, along with at least seven aftershocks, has shaken residents and sparked a discussion about the need for earthquake coverage in Malaysia.

Experts are advocating for wider adoption of earthquake insurance, citing low public awareness due to the historical perception of Malaysia as being free from seismic risks. Malaysia is not considered an earthquake-prone country compared to its neighbors. There is a general lack of awareness regarding home insurance, and this is even more pronounced for risks related to earthquakes.

The August 24 earthquake originated from crustal movement near the Mersing Fault Zone, not volcanic activity or deep-sea subduction. Many homeowners, especially those without mortgages or residing in rural and semi-urban areas, are often underinsured or uninsured.