Standard Fire Policies Cover EV-Related Fire Damage - PIAM

KUALA LUMPUR, Aug 19 (Bernama) -- 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 the General Insurance Association of Malaysia (PIAM). 

The association's chief executive officer Chua Kim Soon 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.

Chua said that permanently installed (hard-wired) EV chargers may 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.

"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/ installations," he said in a statement.

Chua 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.  He said 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. "While standard house owner policies generally provide a limit of RM50,000, policyholders can purchase optional extensions to increase this liability limit," he said.

In addition, Chua said EV owners should review their motor and home insurance policies to address potential gaps in coverage, ensuring comprehensive protection for the vehicle, charging equipment, and residential structure.

-- BERNAMA