A massive fire engulfed the home and building materials shop of Zainal Abidin, S.Pd., in Teko Daya Hamlet, Teko Village, Pringgabaya District, East Lombok Regency, on Saturday afternoon (October 25, 2025). The fire is strongly suspected to have been triggered by an electrical short circuit and caused approximately Rp 1 billion in material losses. Fortunately, there were no fatalities.
Fires caused by electrical short circuits like this are not uncommon. Across Indonesia, over 60% of residential and business fires are caused by electrical short circuits. The incident in East Lombok serves as another stark reminder to business owners, shopkeepers, and small businesses not to neglect property insurance and fire risk management.
In this article, L&G Insurance Broker will review insurance, risk management, and the importance of using a professional insurance broker rather than an agent or purchasing directly from an insurance company to ensure effective coverage and ensure your claim is fully paid when disaster strikes.
📞 FREE Property & Business Insurance Consultation
Contact us on WhatsApp: 08118507773
📧 Email: halo@lngrisk.co.id
Fire Chronology
According to the Fire and Rescue Department report (Fire Department) In East Lombok, a fire broke out at around 1:46 p.m. WITA. After receiving reports from residents, officers immediately deployed one fleet and six personnel to the location. Shortly after, three additional fleets and 13 personnel from the Mako arrived.Fire Department.
Officers arrived at the scene around 2:15 p.m. WITA (Central Indonesian Time) and immediately inspected, extinguished, and cooled the affected area. The fire was finally brought under control at 4:10 p.m. WITA, almost three hours after the first report.
There were no fatalities or injuries, but material losses are estimated at Rp 1 billion. Most of the building and its contents were destroyed by the fire, including flammable building materials such as paint, thinner, and plywood.
Electrical Short Circuits Remain the Main Cause of Fires in Indonesia
Head of RescueFire DepartmentEast Lombok,SofiaHadi stated that the cause of the fire was strongly suspected to be an electrical short circuit. A small spark from a damaged cable or a pile of substandard cables could trigger a major fire, especially in a shop environment filled with flammable materials.
This fact is in line with data from the Directorate General of Resilience and Climate of the Ministry of Environment, which noted that more than 60% of fire cases in Indonesia were caused by electrical short circuits.
This means that this problem is not only technical, but also about risk management and prevention awareness.
The Dangers of Electrical Short Circuits in Business and Households
Electrical short circuits are the most common cause of fires in Indonesia. While seemingly simple, their impact can destroy valuable assets in a matter of minutes. In the context of insurance, fires caused by short circuits are considered a covered risk, provided the policy is properly drafted.
There are several common causes of fires due to short circuits in homes and businesses:
- The electrical installation does not comply with SNI standards.
Many buildings use cables below load capacity, without adequate grounding protection. - Accumulation of electrical load.
Simultaneous use of high-power electrical tools (e.g., drills, water pumps, or air conditioners) exceeds the cable capacity limit. - Damaged cable or loose connection.
A small spark from a loose connection can cause a fire, especially in an enclosed space. - Old or poorly maintained equipment.
Worn out sockets and switches are also frequent fire triggers.
In Zainal Abidin’s case, the hardware store likely stored flammable materials such as paint, thinner, wood, plastic, and cardboard. The combination of a short circuit and these materials accelerated the spread of the fire and resulted in unavoidable losses.
Often Overlooked Financial and Psychological Impacts
A loss of Rp. 1 billion may seem like “just a number,” but its impact goes beyond the loss of physical assets.
Fires like this can cause:
- Loss of main source of income.The store will not be able to operate during the recovery period.
- Emotional loss and severe stress.The house where we lived was also burnt down.
- Debt burden and emergency expenses.The owner had to start from scratch without any financial guarantee.
If you have insurance, all losses can be transferred to the insurance company. If not, you’ll have to cover everything yourself.
This is why risk management and financial protection through insurance are the main foundations in maintaining business continuity.
Types of Insurance Needed for Cases Like This
A house and shop fire like this should be covered by the following types of insurance:
- Fire Insurance
Covers losses due to fire, lightning, explosions, aircraft crashes and smoke.
This policy can cover homes, shophouses, stores, and business buildings. If Zainal Abidin has active fire insurance, he can be reimbursed for losses of Rp1 billion, according to the insured value.
- Commercial Property Insurance (Property All Risks – PAR)
Broader coverage than fire insurance. In addition to fire risks, it also covers damage from floods, earthquakes, or non-fire accidents such as explosions or short circuits.
- Stock Insurance
Covers losses for furniture, merchandise stock and equipment damaged by fire.
- Business Interruption Insurance
Protects against loss of income during a business shutdown due to fire. This policy is essential for business owners who rely heavily on daily cash flow.
- Home Insurance
Protects private homes, including damage to buildings and contents from the risk of fire, lightning, or theft.
Preventive Steps Before It Happens
Insurance does serve to minimize financial impact, but prevention remains the first line of defense.
The following are the fire risk management steps due to short circuits recommended by L&G Insurance Broker experts:
- Check electrical installations regularly.
Ensure all installations comply with PLN and SNI standards. Use a certified technician for annual inspections. - Separate the electrical systems of the house and shop.
Avoid using the same power lines for household appliances and shop machines. - Use fire-resistant building materials.
For example, gypsum ceilings or brick walls to minimize the spread of fire. - Provide a light fire extinguisher (APAR).
Every business premises must have at least one APAR containing dry chemical powder in high-risk areas and the APAR must function properly. - Store flammable items in a special room.
Make sure it is away from electricity and heat sources. - Insure Your Assets through a Professional Broker
An experienced broker can help assess potential hazards and provide preventative recommendations before a disaster occurs.
Why Go Through an Insurance Broker, Instead of an Agent or Company Directly?
Many people mistakenly believe that purchasing a policy directly from an insurance company or through an agent is sufficient. However, the fundamental difference lies in who actually works for you.
Insurance agents work for insurance companies.
Their job is to sell specific products assigned by the company. Agents don’t have the authority to conduct in-depth risk analysis or design insurance programs tailored to your business’s needs. When a claim arises, agents are typically not directly involved in the settlement process.
Meanwhile, Insurance brokers like L&G Insurance Broker work for you, the policyholder.
As an independent party registered and supervised by the Financial Services Authority (OJK), brokers have a legal obligation to protect the interests of their clients, not insurance companies.
The role of a broker includes:
- Thoroughly analyze your business and property risks.
- Determine the most appropriate and efficient type of policy in terms of premiums.
- Negotiate the best terms with the insurance company.
- Accompanying customers from the beginning until the claim is paid.
This is an advantage that agents or direct purchases do not have.
When a fire like the one in East Lombok occurs, brokers will directly assist with the claims process, preparing reports, negotiating with loss adjusters, and ensuring that claims payments are properly disbursed.
On the other hand, many customers who buy policies directly from insurance companies are often surprised when claims are rejected or paid partially, because it turns out that:
- The insurance value is insufficient,
- Or there are technical requirements that were never explained from the start.
Brokers prevent these things from happening by ensuring that every detail of the policy matches the actual needs and conditions on the ground.
Learning from the East Lombok Case: The Risks to Homes and Businesses Cannot Be Underestimated
The fire at Zainal Abidin’s house and shop is a clear example of how important insurance is for small and medium enterprise (SME) owners throughout Indonesia.
Electrical short circuits can happen at any time, even in a simple home.
Without insurance coverage:
- Entire assets can disappear in a matter of hours.
- Business owners are forced to start again from scratch.
- There is no financial certainty to recover the business.
But with insurance arranged by a professional broker:
- Material losses are compensated by the insurance company.
- The claims process is fully assisted by a team of experts.
- Business owners can focus on recovering their business.
The Role of L&G Insurance Brokers in Risk and Claims Management
As an independent insurance broker with over 30 years of experience, L&G Insurance Broker has become a trusted partner for many companies and business owners in Indonesia.
We help customers from various sectors:
- Manufacturing and warehousing industries.
- Trade and retail stores.
- Commercial and residential properties.
- Construction projects and heavy equipment.
L&G’s approach is not just focused on policy sales, but on risk prevention and claims success.
The L&G team will do:
- Comprehensive risk analysis at business locations.
- Choosing the best and most efficient police.
- Assistance with documentation and claims negotiation.
That’s why L&G customers can remain calm even in the face of major disasters.
Conclusion
The fire in East Lombok is proof that disaster can strike anyone, at any time, even in the most unexpected places. A seemingly trivial electrical short circuit can destroy assets worth billions of rupiah. However, with the right insurance protection, losses can be recovered and businesses can continue operating.
Choose the safe route: use the services of a professional insurance broker like L&G Insurance Broker. We don’t just sell policies, we also support you through the entire claim process.
Contact Us for a FREE Consultation Now!
Don’t wait for the fire to burn down the fruits of your hard work.
Protect your assets today with L&G Insurance Broker.
—
HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
—
