What Is Covered By Standard Home Insurance In The Philippines?

Many Filipinos associate success with owning a home. Consequently, this significant investment can make a person feel prosperous in their life – they can provide their families with a safe place to stay in. It also enables them to secure a better financial future as a home is considered a significant asset. 

Since this is a significant investment, it must be protected from unexpected or severe hazards. And one way of preserving the property is through insurance.

As in every other country and state, having home insurance Philippines is paramount. Therefore, the Philippine archipelago is situated along the Pacific Ring of Fire and isvulnerable to natural disasters. Over the past decades, many homes and properties have been destroyed by typhoons and other natural disasters.

A home insurance policy in the Philippines can help homeowners protect their property investments. This type of insurance policy can help them recover from the devastating financial consequences of adversities. Additionally, having home insurance lets homeowners feel secure and less stressed about financial hardships.

Accordingly, besides covering the home’s structure, a standard insurance Philippines policy also covers personal property such as cash, jewelry, and other home components and contents. But, people must understand that insurance companies provide coverage on home contents based on the actual cash (depreciated) value of the items. 

Moreover, apart from the main things covered in home insurance that homeowners will be benefiting from, acquiring an insurance policy can help them increase their chances of getting their home loan approved. Mortgage lenders will verify that the homeowner has adequate protection — this ensures that they will not lose out on loan and will not be liable for any unpaid amounts if the property incurs damage from a natural calamity or other unforeseen circumstances.

But, even though it is evident that homeowners can be protected against financial ruin by having home insurance, many people remain overwhelmed and resist purchasing one. This comes as they believe home insurance is a waste of money.

People, however, fail to understand that home insurance is only a waste of money if they do not know the policy inclusions and limits. You can still get adequate coverage even with a standard home policy. This infographic by iChoose.ph, an insurance comparison website, provides more details about the coverage provided by a standard home policy.