27 December, 2025

Joint Management Body Insurance: Protecting Management, Residents & Your Property Assets

Admin by Admin

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 One accident or disaster can lead to huge losses if insurance is missing or outdated.

  1. What It Covers (Main Protection)
    A standard JMB/Strata master policy protects:

  • Fire & Lightning

  • Flood

  • Storm/Heavy Rain Damage

  • Falling Trees or Flying Objects

  • Vehicle Impact Damage

  • Burst Water Tanks or Pipes

  • Public Liability (If someone gets hurt or property gets damaged, it protects management from lawsuits and compensation costs)

  1. Optional Extensions (If available)

  • Lift breakdown cover

  • Extra liability buffer

  • Specific asset add-ons

  1. What Happens Without Insurance?
    If there is no insurance, or no yearly policy review:

  • Management may pay repair costs from their own pocket

  • Residents may take legal action

  • Disputes may happen during claim

  • Building trust and reputation can be damaged

  1. Real Claim Scenarios (Malaysia History Examples)
    Malaysia has its own share of incidents that affected management bodies:

  • 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.

  1. Why Public Liability Matters
    It ensures:

  • Resident safety is prioritised

  • Management is protected from being sued

  • Compensation is handled by insurer, not management funds

Insurance protects the building.
Public Liability protects the management.
Policy Review protects your money & reputation.