Fire insurance services available for four types of building

The Myanmar Insurance will offer fire insurance services for four types of building based on the level of damages.

Building is categorised into four sections — RC building (first class), building with wooden columns and concrete wall (second class), wooden house (third class) and hut (fourth class).

“Fire insurance for houses calls for a valuation report. The calculation needs to multiply the value of the first class building by 0.2 percent. For instance, the house worth Ks 10 million will have to pay Ks 20,000 per year. This percentage remains unchanged if there are first class houses near your house. But the percentage is calculated on average if second, third and fourth-class houses are located near your house within the 25 feet distance,” said an official from the Myanmar Insurance.

The Myanmar Insurance will pay the original value of house when the house is completely destroyed. But house owners will receive the repairing cost based on the level of damages when the fire destroys only parts of house.

In 2014, there were 1,629 reported fire outbreaks in the country, killing 60 people and destroying 3,206 houses, nine factories and workshops and 78 warehouses, according to Myanmar Fire Services Department leaving 10,624 victims homeless.

From January to February this year, there were 330 reported fire outbreaks throughout the country, leaving eight people dead and over 2,900 victims homeless.