by AdminJoint Management Body Insurance: Protecting Management, Residents & Your Property Assets
JMB Insurance: Why Every Management Team Needs It
Managing a residential building means managing risk. One accident or disaster can lead to huge losses if insurance is missing or outdated.
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What It Covers (Main Protection)
A standard JMB/Strata master policy protects:
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Fire & Lightning
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Flood
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Storm/Heavy Rain Damage
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Falling Trees or Flying Objects
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Vehicle Impact Damage
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Burst Water Tanks or Pipes
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Public Liability (If someone gets hurt or property gets damaged, it protects management from lawsuits and compensation costs)
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Optional Extensions (If available)
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Lift breakdown cover
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Extra liability buffer
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Specific asset add-ons
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What Happens Without Insurance?
If there is no insurance, or no yearly policy review:
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Management may pay repair costs from their own pocket
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Residents may take legal action
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Disputes may happen during claim
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Building trust and reputation can be damaged
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Real Claim Scenarios (Malaysia History Examples)
Malaysia has its own share of incidents that affected management bodies:
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1997 Highland Towers Collapse (KL)
Over 48 fatalities. Massive legal battles, reputation damage, and compensation claims. Management oversight and safety accountability became national focus. -
2014 Penang Floods
Residential buildings suffered heavy damage in common areas, cars, and infrastructure. Repair costs were extremely high for affected management bodies.
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Why Public Liability Matters
It ensures:
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Resident safety is prioritised
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Management is protected from being sued
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Compensation is handled by insurer, not management funds
Insurance protects the building.
Public Liability protects the management.
Policy Review protects your money & reputation.