Getting property insurance in the Philippines is a way to safeguard and protect your properties and assets when worst comes to worst. You worked hard on your property and losing it at the most in an instant at the most unexpected time can be heartbreaking- it’s your blood, sweat, and blood. After all, something you work hard for is worth protecting, and getting your property insured is the perfect protection. In this article, we will talk about the purpose of acquiring insurance, what it covers, and how it protects your property.
What is the Primary Purpose of Buying an Insurance
The primary purpose of buying insurance is to protect and insure you from financial uncertainty. Depending on the type of insurance that you’ll be getting, whether it’s health, commercial, home, life, or expat insurance, you will get coverage accordingly.
But in this article, we will be focusing on property insurance in the Philippines, its coverage, and benefits in order to understand whether you need it or not. Without further ado, let’s jump right into it.
What is a Property Insurance
A property insurance offers protection on your properties or called liability coverage. This protects you and your property from inclement weather risks and forces of nature such as heavy storms, typhoons and also includes fires, earthquakes, and more. On another note, insuring your property also protects your properties from manmade damages such as riot strikes, accidents, etc.
Types of Property Insurance
Here are the types of property insurance depending on what suits your needs:
Homeowners Insurance
Homeowners insurance has comprehensive coverage designed to protect individuals and families who own a house. It typically covers damages to the structure, personal belongings, liability for injuries on the property, and additional living expenses in case the home becomes unlivable caused by incidents, disasters, or force of nature.
Condo Insurance
Condo or condominium insurance are tailored for condominium owners. Condo insurance provides coverage for both the individual unit and personal belongings. While the condo association’s policy may cover the building structure, condo insurance fills the gaps by protecting the owner’s interior, personal property, and liability.
Landlords Insurance
Landlords insurance caters to property owners who rent out residential spaces. Insurance policies cover the structure, landlord’s personal property (such as appliances and furniture provided to tenants), liability protection, and potential loss of rental income.
Renters Insurance
Renters insurance is designed for tenants, offering protection for personal belongings within a rented property. It covers items like furniture, electronics, and clothing, as well as providing liability coverage in case the tenant is responsible for damage to the rented space.
Unforeseen Events Covered by Property Insurance
Fires
Property insurance offers coverage against fire incidents. Whether sparked by electrical issues, accidents, or other unforeseen events, property insurance policies ensure that damages to your property are addressed.
Floods
The risk of flooding in the Philippines is high, especially residences located in lower and sloped roads. Property insurance policies include coverage for flood-related damages, providing financial support for the restoration of your home and property.
Earthquakes
Property insurance extends coverage to earthquakes. In the aftermath of earthquakes and aftershocks, property insurance policies cover structural damages and help you restore your property or home.
Volcanic Eruptions
If you’re leaving near volcanoes, whether it’s dormant or active, this coverage is for you. Property insurance covers the aftermath of volcanic eruptions, providing assistance for damages caused by volcanic activity.
Storms
Tropical storms and typhoons are part of the Philippine climate. Property insurance provides coverage for damages caused by heavy rainfall, strong winds, and other storm-related causality. Whether it’s roof repairs or structural damages, insurance policies are designed to cover catastrophic damages brought by heavy storms.
Riot Strikes
Unforeseen civil damages can impact properties. Property insurance steps in to cover damages caused by riot strikes, offering financial support for repairs and restoration. With property insurance, your property stays protected even in unpredictable social scenarios.
Vehicle Impact
Accidents involving vehicles can result in significant property damages. Property insurance covers the costs of repairs or replacement, ensuring you are covered after a vehicle-related accident damaged your property.
Explosions
Whether due to industrial incidents or unforeseen accidents, explosions can cause huge property damage. Property insurance includes coverage for damages caused by explosions, providing the necessary financial support for recovery and reconstruction.
What is the primary difference between homeowners and renters insurance?
The primary difference between homeowners and renters insurance lies in the scope of coverage and the aspects of the property each policy protects.
Homeowners Insurance
Homeowners insurance is protection for your home. This type of insurance covers the place of residence itself, and extends its reach that includes other structures on the property, such as garages, frontyard, and backyard.
In addition, homeowners insurance provides a safety net for personal belongings within the home, such as furniture, appliances, and personal possessions.
Beyond property coverage, homeowners insurance includes liability protection. This shields you from potential legal claims caused by bodily injury or property damage that may happen on your premises.
Should a covered danger happen that makes the home temporarily uninhabitable, homeowners insurance often steps in to cover additional living expenses. This includes financial support for hotel costs, meals, and other necessary accommodations.
Renters Insurance
Renters insurance protects your personal belongings in the event of incidents such as force of nature or manmade damages. This insurance also protects you from liability, helping you with legal expenses if someone is injured in your rented space or if you accidentally damage someone else’s property.
On another note, should your rented home become uninhabitable due to a covered incident or damages, renters insurance can cover all your necessities and worries as soon as your home becomes habitable again.
Property Insurance providers in the Philippines
- AXA Philippines
AXA Philippines offers an insurance plan for homeowners, providing protection to over 1.3 million clients worldwide.
AXA Philippines’ property insurance helps you protect your residence in the event of natural and unexpected disaster such as fire, flood, earthquake, storms, and volcanic eruptions.
- Regular fire and with allied perils
- Industrial all risk
- Commercial all risk
- Trust receipts
- Fire and lightning
- Typhoon and flood
- Earthquake, fire and shock
- Riot, strike and malicious damage
- Smoke damage
- Vehicle impact
- Falling aircraft
- Explosion
- AIG Property All-Risk
AIG Property All-Risk insurance offers a comprehensive plan for property owners that goes beyond residential homes. With over 88 million clients worldwide, AIG has a market-leading capacity for insuring property owners providing large limits up to US$ 1.5 billion for well-protected and well-managed risk properties.
AIG provides you with coverage for your property against loss or damage caused by fire and lightning, and allied perils such as earthquake, typhoon, flood, falling aircraft, impact damage, volcanic eruption, riot, strike and malicious damage. Additional covers may be added to meet the needs of the business.
Types of Property Covered:
- Airports
- Hotels
- Malls
- Condominiums
- Commercial Buildings
- Infrastructure (Roads, Railway systems)
- Casinos
- Schools
- Hospitals
- Telecoms
AIG Property All-Risk Covers:
- Fire and/or lightning
- Windstorm, storm, typhoon, hailstorm, hurricane, tornado
- Flood
- Earthquake
- Volcanic eruption
- Explosion, falling aircraft, impact by road vehicles, smoke
- Broad water damage, water damage caused by the overflowing or bursting of water tanks, pipes or other apparatus, backing up of sewers and pipes
- Subsidence, collapse, landslide and/or landslip
- Riot and strike, civil commotion, malicious acts
- Mechanical or electrical derangement, failure or breakdown
- Electrical injury being the overheating of electrical and electronic equipment without actual ignition
- Bush fire
- Spontaneous combustion
- Sprinkler and related firefighting apparatus leakage
- Tidal wave and tsunami
- FPG Home Insurance
Providing general insurance in Southeast Asia for over 50 years, FPG home insurance provides the security that every homeowner needs for their property. Not to mention, FPG home insurance provides the convenience of applying insurance online for property owners. Their flexible and comprehensive insurance protects your home from:
- Fire or Lightning or Thunder
- Earthquake
- Typhoon or Windstorm including Flood or Overflow
- Flood or Overflow of the Sea
- Volcanic Eruption
- Subterranean Fire
- Extended Coverage against Explosion, Falling Aircraft, Vehicular Impact, and Smoke Damage)
- Riot, Strike and Malicious Damage
- Broad Water Damage
- Bursting or Overflowing of any water tank apparatus or pipe
- Robbery / Burglary / Housebreaking
Additional Coverage:
- Architect or Surveyor’s Fees up to 5% of the building sum insured
- Debris Removal expense up to 10% of the building sum insured
- Internal Removal expense up to 10% of the contents’ sum insured
- Visitors Personal Effects up to 5% of the contents’ sum insured
- Automatic coverage for Platinum, Gold, Silver, Jade articles and jewelries, as well as furs up to one-third (?) of the contents’ sum insured, unless specifically agreed herein, maximum limit of Php 50,000 pesos
- Servant’s Property up to 10% of the contents’ sum insured, maximum limit of Php 5,000 pesos
- Alternative Accommodation or Loss of Rent, up to 10% of the building sum insured plus 10% of the contents’ sum insured, maximum limit of Php 5,000 pesos per month, up to 6 months
- Malayan Home Protect Insurance
Founded in 1930, Malayan Insurance has accumulated almost a century of experience offering general and affordable insurances to Filipino clients. Similar to FPG, Malayan offers the convenience of availing insurance online. Their comprehensive Home Protect Insurance plan covers:
- Allied Perils
- Fire
- Lightning
- Earthquake
- Typhoon
- Flood
- Smoke, falling aircraft, vehicle impact and explosion
- Riot, strikes, and malicious damage
- Family accident and hospitalization insurance
- Valuable items protection
- Household employee insurance
- Property-related extension
- Prudential Property Insurance
Prudential Property Insurance offers comprehensive packages for businesses from unforeseeable events and natural disasters with appropriate packages that you can depend on.
Prudential Allied Perils Coverage
- Earthquake Fire / Shock
- Typhoon
- Flood
- Riot, Strike and Malicious Damage
- Extended Coverage (which includes the perils of smoke, explosion, falling aircraft and impact of vehicles)
- Broad Water Damage w/ Accidental Bursting and / or Overflowing of Water Tanks, Apparatus, and Pipes (BWD w/ABOWTAP)
- Sprinkler Leakage
- Landslide / Subsidence
- Spontaneous Combustion
- Robbery / Burglary
Additional Coverage:
- Automatic Increase / Capital Additions Clause
- Professional Fees Clause
- Fire Fighting Expense Clause
- Debris Removal Clause
Additional Fire Insurance Coverage:
- Basic Fire / Lightning Insurance (with or without Allied Perils)
- Industrial All Risks Insurance
- Business Interruption and / or Consequential Loss Insurance
Who needs Property Insurance?
Anyone who owns property and has put in hardworking effort to obtain it should consider getting property insurance. Insurance is not just for the wealthy, but also middle-class individuals – which benefits them greatly. If you own a home, condo, rental property, or valuable assets, availing protection is for you.
Property owners that own high-value, expensive properties are in need of property insurance. Example of these properties are:
- Art / Paintings
- Jewelry
- Luxury Homes
- Luxury Clothes
Property insurance is a safety net that protects the things you’ve put your blood, sweat, and tears into and ensures that your property in case of unexpected events. This frees you from worry of financial burden and is a smart move for individuals who want a peace of mind for their investments and property.
