Sungei Kadut Factory Fire

Photo: SPH
One of the shop tenants said that no insurers wanted to insure them due to the high risk of fire inherent in the wood-working industry. In truth, I have helped write fire insurance for some clients of mine in the furniture-making business.

There are probably a couple of reasons why they could not get fire insurance for their factory:

1. Many insurers have "blacklisted" the enitire Sg Kadut area due to the many incidences of fire in the area. There are also lots of flammable materials in the area, like wood and sawdust, and the risks of fire spreading to neighbouring units are very real. In an attempt to prevent the spread of fire, firemen would even spray water on the neighbouring properties, thereby causing water damage.

2. Looking at the above photo taken by an SPH photographer, the building does not appear to be made of Class 1 construction, i.e., brick and concrete. Again, most insurers decline such risks where the buildings are not made of brick and concrete.

I have in fact helped to insure a warehouse unit (to store furniture and household effects) in Sg Kadut Loop because it is of Class 1 construction, although it is sited in this so-called high-risk area.