• Home
  • About Us
    • Our People
    • KMC 10th Year Anniversary
  • Services
    • Transactions and Advisory Services
    • Landlord Representation
    • Investments
    • Research and Consultancy
    • Offshoring Corporate Services
    • Asset Management
    • Residential Services
    • Serviced Offices
    • Project Management
    • Hotels and Leisure
    • Retail Services
    • Valuation & Appraisal Services
    • Industrial And Logistics Services
    • Data Center Services
  • Resources
    • EpicSpace
    • Philippines
    • Case Studies
    • Testimonials
  • Research & Insights
  • Careers
  • Contact Us

KMC Header

KMC Savills
PH (+63) 2-8403-5519
[email protected]
  • About Us
    • Our People
    • KMC 10th Year Anniversary
  • Services
    • Transactions and Advisory Services
    • Occupier Services
    • Investments
    • Research and Consultancy
    • Offshoring Corporate Services
    • Asset Management
    • Residential Services
    • Serviced Offices
    • Project Management
    • Hotels and Leisure
    • Retail Services
    • Valuation & Appraisal Services
    • Industrial And Logistics Services
    • Data Center Services
    • Hub and Spoke
  • Resources
    • EpicSpace
    • Philippines
    • Case Studies
    • Testimonials
  • Research & Insights
  • Careers
  • Contact Us
Inquire Now
List your property

What You Need to Know About Your Home Insurance

https://kmcmaggroup.com/research-insights/2014/what-you-need-to-know-about-your-home-insurance/
Home Insurance,Tips And Advice,
What You Need to Know About Your Home Insurance

What You Need to Know About Your Home Insurance

KMC Savills

Posted on Wednesday, January 8, 2014 Thursday, May 14, 2020
  • Home
  • Research & Insights
  • 2014
  • What You Need to Know About Your Home Insurance
What You Need to Know About Your Home Insurance

Most Filipinos buy home insurance just because it is required, often by mortgage lenders. And sadly, a lot of these owners of condo units and houses do not know the full details about their policy: what their coverage options are, what events or situations are covered and not covered, what type of policy they purchased, and more. Some of them also do not know the advantages and disadvantages of various home or building insurance packages in the Philippines, so they are unable to get the best available coverage that suits their needs.

The good news is that it's not yet too late for you to learn more about your home insurance policy to gauge if you still need to purchase other policies to supplement your needs. We've prepared a set of questions to ask your existing or new insurance broker to help you understand why you need home insurance and what type of policy you signed up for (or should sign up for):

1. What is the purpose of paying for home insurance?
More than being a requirement by mortgage lenders, home insurance is necessary to protect you from suffering financial misfortune in case your owned residential property (house, apartment, townhouse, condo) gets damaged due to unforeseen factors. The policy will pay for damage to your property and your possessions in case there's storm, fire, theft, vandalism, etc. This means that you won't have to carry the financial burden in case anything happens to your house. 

2. What type of insurance policy do I have and what does it cover?
It is important to know and understand what your policy covers and what benefits it offers to ensure you get the maximum protection you're paying for. Although they generally provide financial and property protection, house or condo insurance policies come in different forms and coverages, which is why you need to have your broker explain to you the features of your policy.
Basic home insurance covers properties as well as belongings (except money and jewelry) in case they get damaged only by fire and lightning. This includes the house's structure, plumbing, electrical wiring, central air and heat systems, sheds, fences, etc.
Extended insurance, on the other hand, provides coverage for damages caused by other man-made or natural calamities such as:

  • Earthquake
  • Volcanic eruptions 
  • Tidal waves 
  • Flood
  • Landslides 
  • Explosions
  • Storm/Typhoon
  • Vehicular impact
  • Falling aircraft 

There are also policies that include personal liability insurance, which pays for expenses due to lawsuit from someone who gets injured on your property and expenses due to loss of use, such as the rent for a hotel room while your home is being repaired.

3. Which events are not covered by the insurance policy?
Policies have exclusions; and as mentioned earlier, basic insurance provide less coverage compared to extended insurance. If you are about to purchase one, find out what the exclusions of your policy are before you decide to commit. And if you already have one, read the policy carefully to find out if you still need to purchase supplemental coverage (i.e. If you live in a flood-prone area, make sure your insurance covers flooding. If not, then you might have to purchase one.)

4. How much is the property covered for?
Just because the insurance policy includes a 7-digit amount of coverage does not mean that it would be enough to cover your needs. This is why you have to ask how much the coverage is to see if it would be sufficient in covering the actual value of your properties. You can also gauge if it is worth it and if you can afford it, as policy premiums also increase together with the amount of coverage. Ideally, you should compute the cost of rebuilding and redesigning your home in the future together with your personal belongings in case your home gets damaged or destroyed and purchase enough insurance to cover this amount.
You can opt to purchase the "actual cash value" amount, which is equivalent to the value of our property at the time it was destroyed, minus depreciation. Other options would be "replacement cost" option, which does not factor depreciation in computing the coverage's value or the "extended value" option, which can give you up to 20-30% more than your policy limit.

5. How long has the insurance provider been in the industry and what is its track record in service?
Perhaps the most important consideration to make when purchasing any form of insurance is the reliability and experience of the insurance provider. Unfortunately, several Filipinos have fallen victim to fraudulent companies who promise financial protection, yet in the end were unable to deliver the compensation stipulated in the contract. This is why it is important to perform your own research about the track record, history, and stability of the company offering you an insurance policy. You can also visit the site of the Insurance Commission to find out which companies are licensed to offer insurance products.

You should also ask about steps involved in filing claims, timeline involved in approval of these claims, etc. Customer service is also an important factor to consider when buying a home insurance.

Do you have questions and comments about this article? Contact Angela Manese, KMC's Residential Sales and Leasing Executive today!

Photo courtesy of: http://www.thetinylife.com

View all articles

Written by

KMC Global Research
KMC Global Research
TAGS:
  • Home Insurance
  • Tips And Advice

Latest Posts

3 Reasons Why Malate Manila is the Ideal Area for Manpower Agencies

Thursday August 11, 2022

A Testament to How Resilience Triumphs over Adversity: Manta Corporate Plaza launches in Arca South

Monday August 8, 2022

5 Reasons Why the Philippines is the Ideal Data Center Hub in Southeast Asia

Wednesday June 29, 2022

The Rise of Neighborhood Malls: How Malls are Changing in the Post-pandemic Era

Wednesday August 3, 2022

KMC Contact Us

How can we help?

KMC is an award-winning real estate services company. Headquartered in Bonifacio Global City, with over 150 employees involved directly in transactions for tenant representation, landlord representation, investments, and residential services.

We are recognized as the Best in Class Real Estate Agency in the Philippines and an exclusive international affiliate of Savills – a leading global real estate service provider listed on the London Stock Exchange (SVS: LSE). This provides the firm and its clients access to a global network of over 700 offices and 30,000 real estate experts throughout the Americas, Europe, Asia Pacific, Africa, and the Middle East.

Learn more

KMC Newsletter

Sign up for the latest Research & Insights

Get in Touch

(\+$I63,) 2+P\-XU;84€0C#3/\-5Q5-1=9DV [email protected]

Follow Us

KMC Footer

KMC Savills
DISCLAIMER: The information, photographs, images, landscapes, floor plans and the like contained on this website are for general information and illustrative purposes only. Credit remains to the owner of the photographs and images. KMC does not claim ownership, income, control and use of the photographs and images and does not assume responsibility for any kind of damages (direct or consequential) in relation to the use of such information, photographs and images on this website.
© 2021 KMC. All rights reserved. KMC is the leading real estate services firm in the Philippines.
Terms of Service • Privacy Policy
Monday: 09:00:00 - 18:00:00
Tuesday: 09:00:00 - 18:00:00
Wednesday: 09:00:00 - 18:00:00
Thursday: 09:00:00 - 18:00:00
Friday: 09:00:00 - 18:00:00