Your Insurance Claim Was Denied Due to a “Natural Disaster”? Even Though It Was Normal Rain in Bandung!

When Bandung Rain Becomes a Financial Disaster

Bandung is known for its cool climate and high rainfall almost year-round. However, despite this coolness, many business owners in Bandung have suffered significant losses due to flooding, inundation, and minor landslides, particularly in the Rancaekek, Dayeuhkolot, and Gedebage areas.

Ironically, many of those who already have insurance are deeply disappointed when their claims are rejected on the grounds that they are “not covered due to natural disasters.”
In fact, they felt that it was just ordinary rain that caused water to enter the warehouse or submerge vehicles.

This disappointment often occurs not because of bad intentions from the insurance company, but because of a mismatch between the policy purchased and the actual risk.
This is where the role of PT. Liberty and General Insurance Broker (L&G) becomes crucial—helping clients understand the policy’s contents and ensuring all major risks are truly covered.

Retail Warehouse in Rancaekek Flooded, Claim Rejected

Take PT. Sejahtera Niaga Mandiri, for example, a food distribution company operating in the Rancaekek area of ​​East Bandung.
In early January 2024, rainfall increased dramatically over several consecutive days. As a result, the drainage channels around the warehouse were unable to accommodate the water flow, and an area of ​​1,000 m² was flooded to a depth of 40 cm.

Hundreds of cartons of products were damaged, office equipment was submerged, and operations were paralyzed for three days. Total losses were estimated at Rp 450 million.

When they filed an insurance claim, the results were disappointing — the claim was denied.
The reason:

“The policy does not cover the risk of flooding, inundation and landslides because it does not add a clauseRSMDCC (Riot, Strike, Malicious Damage, and Civil Commotion) & Flood Extension.”

Management claimed to be unaware of the additional clause.
They think that property insurance automatically protects against all risks, including rain and floods.

Common Mistakes in Bandung Related to Flood Risk and Extreme Weather

Bandung has a unique topography: much of its territory is valleys with numerous rivers and streams. Just a few hours of heavy rain can cause flooding.
However, unfortunately, many business people still misunderstand their property insurance coverage.

Here are the most common mistakes:

1. Assuming that Property All Risks (PAR) Insurance Automatically Covers All Risks

The term “All Risks” is often misleading.
In fact, the PAR policy has a long list of exclusions, andfloods, waterlogging and landslidesnot automatically guaranteed unless with additional clauses.

2. Not paying attention to the location and condition of drainage

Insurance companies usually take geographical risks into account.
Buildings in flood-prone areas or near rivers (such as Rancaekek and Dayeuhkolot) require additional premiums to cover flood risks.
Without consulting a broker, many business owners are unaware of this.

3. No Annual Re-Evaluation

Environmental risks change over time.
Areas that were once safe may now be prone to flooding due to new construction or damaged waterways.
Unfortunately, many companies renew policies without re-evaluation — making the coverage irrelevant.

4. Misinterpreting the Term “Natural Disaster”

Some police only bearAct of God(earthquakes, volcanic eruptions, tsunamis), but does not coverfloodingdue to normal rain.
Claims can be rejected simply because of differences in interpretation of these terms.

Another Case Study: Hotel in Lembang Loses Claim Due to Landslide

A boutique hotel in the Lembang area experienced a minor landslide in December 2023. Part of the boundary wall cracked, the garden area collapsed, and several rooms were rendered unusable.
The hotel management filed a claim with the insurance company, but received a surprising answer:

“Damage due to ground movement is not covered under the standard policy.”

The loss reached Rp. 800 million.
In fact, if they added the “Landslide and Subsidence Extension”, all the damage could be fully replaced.

The incident made the hotel management realize: they needed professional advisors, not just policy salesmen.
Since 2024, they have partnered with PT. Liberty and General Insurance Broker (L&G) to review the hotel’s entire insurance program—from property and vehicle coverage to guest liability coverage.

How L&G Helped a Bandung Client Avoid Flood and Weather Claim Problems

As an independent insurance broker, L&G is tasked with protecting clients’ interests from start to finish:
starting from policy design, premium negotiation, to claims handling.

Here are the concrete steps taken by L&G:

1. Geographical Analysis and Weather Risk

L&G mapped the client’s property location using flood risk maps and the topography of Greater Bandung.
Areas such as Gedebage, Rancaekek, Dayeuhkolot, and parts of Cimahi were given special attention.

From the results of the analysis, the broker will recommend:

• Additional clauses RSMDCC + Flood & Earthquake.
• Improved building protection (water channels, embankments).
• Early warning system for flooding.

2. Design the policy according to your actual needs.

L&G ensures the policy covers all major risks such as:

• Floods and waterlogging.
• Landslides and ground movements.
• Fire due to short circuit during rain.
• Damage due to rainwater entering the building.

Thus, clients do not need to worry about their claims being rejected simply because of the “definition of a natural disaster.”

3. Negotiation with Insurance Company

L&G has a network with many large insurance companies, such as Tokio Marine, Allianz, ACA, and others.
With its reputation and large business volume, L&G can negotiate additional clauses without excessive premiums.

4. Education and Annual Review

Every year, L&G conducts a policy review and provides detailed explanations regarding policy limits and extensions.
This ensures clients are always updated on changes in risks and regulations.

5. Claims Assistance

In the event of a flood or weather disaster, the L&G team immediately goes into the field to help:

• Damage documentation.
• Communication with loss adjuster.
• Negotiate with the insurance company so that the claim is paid in full and quickly.

Success Case Example: Plastic Factory in Gedebage

A plastic factory in Gedebage, East Bandung, once experienced flooding up to 30 cm deep due to heavy rain.
Before working with L&G, their claims were rejected on the grounds of “no flood clause.”

The following year, L&G reviewed the entire policy and added:

• RSMDCC + Flood Clause.
• Machinery Breakdown + Water Damage Clause.
• Business Interruption (BI) Extension to cover losses due to production stoppages.

A few months later, heavy rains struck again and the factory was flooded again.
This time, the claim worth Rp 1.2 billion was paid in full within 45 days.
Factory management said:

“If it weren’t for L&G, we might have gone bankrupt because of that little flood.”

Important Lesson: Don’t Underestimate “Ordinary Rain” in Bandung

Rain in Bandung cannot be separated from everyday life.
However, the losses from water and moisture are often much greater than they appear on the surface.

Companies often take small puddles lightly, but the effects can be devastating:

1. Stock of goods and cardboard packaging.
2. Production machines and electrical panels.
3. Damp floors and walls.
4. Operational disruptions to decreased revenue.

All of that can be guaranteed by insurance —as long asThe program was designed correctly from the beginning.

Why Companies in Bandung Should Use Insurance Brokers Like L&G

Here are the reasons why using a broker like PT. Liberty and General Insurance Broker (L&G) is much safer than buying a policy directly:

• 🧭100% Client-Supported
  L&G works for your interests, not the insurance companies.
• 📍Understanding Local Risks in Greater Bandung
  The L&G team has a deep understanding of the geographical conditions, climate, and infrastructure of the Bandung area.
• 💬Free Consultation and Audit
  Before purchasing or renewing a policy, L&G helps analyze potential risks at no additional cost.
• ⚙️Fair Premium Negotiation and Clauses
  Brokers have negotiating power due to their large business volume — as a result, you get optimal protection at an efficient price.
• 🕒Drama-Free Claims Assistance
  No need to worry about claims being rejected on the grounds of “natural disaster.”
  L&G ensures that every risk promised is actually paid.

Conclusion: Don’t Let the Rain in Bandung Ruin Your Business

Rain is a part of life in Bandung, but that doesn’t mean you have to lose your assets and finances every time the rainy season comes.
The problem isn’t the weather — it’s the improper insurance design.

If you’ve ever been disappointed because your claim was rejected due to a “natural disaster,” now is the time to act wisely.
With the help of PT. Liberty and General Insurance Broker (L&G), you can get an insurance program that actually works when you need it.

Is your business located in the Rancaekek, Dayeuhkolot, Lembang, or Gedebage areas which are prone to flooding?
Don’t wait until the next loss comes.

—

DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.

HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)

Website: lngrisk.co.id

Email: halo@lngrisk.co.id

—

💼L&G — Real Protection, Not Just a Promise.