The Philippines’ geographic location exposes the archipelago to numerous catastrophic hazards. Since it is positioned along the Pacific Ring of Fire, the country is prone to tropical cyclones, earthquakes, volcanic eruptions, floods, and even draughts.
Importance of Home Insurance
With the country’s high exposure to natural hazards, it is crucial to escalate your disaster preparedness practices reducing financial consequences for you, your family, and your assets like your house.
As a house is considered a significant investment an individual incurs in their lifetime, it is crucial to have it insured. Home insurance Philippines is a non-life insurance policy that provides homeowners coverage or financial protection against home loss and damage from a broad range of possible damage to their property.
In addition, a home insurance policy also enables you to prove to mortgage lenders that your property has enough financial protection against disaster damage. This ensures lenders will not lose out on loans; hence, increasing the chances that your home loan will be approved.
Home Insurance Coverage
There are two main things covered in a standard insurance Philippines: home structure and personal belongings.
Of course, as this is home insurance, the home structure is covered by the policy. Insurance providers cover the cost of your home’s repair or reconstruction if it incurs damage due to perils, such as earthquakes, typhoons, floods, lightning, and fire. Damage resulting from riots, strikes, other malicious acts, as well as accidental bursting or overflowing of pipes, fittings, water tanks, and sprinklers, are also covered in standard home insurance.
Moreover, your personal belongings, such as cash, jewelry, appliances, furniture, fixture, among other home contents, are also covered by your home insurance – but with limits.
Insurance companies generally detail what types of home contents are covered by their policies and how much coverage is given to their structure. It is crucial to examine insurance policy contracts and compare each plan you see with other policies. This allows you to deliberate which insurance policy provides you with adequate protection and fits your budget.
To know more information on the coverage that you will be getting in a standard home insurance policy, read the infographic by iChoose.ph provided below: