Home Insurance: It’s Importance and Different Types

Protection with insurance

It is well acknowledged that Filipinos have a long way to go in terms of financial literacy. One of the most prevalent misunderstandings they have is viewing insurance as a responsibility rather than an advantage in the event of an emergency. Furthermore, most Filipino families aspired to buy a home since it ensures us a safe refuge for everybody dwelling in it. Moreover, the majority of Filipino households have three generations of family ties, from grandparents to grandchildren. One of the things we prioritize is the safety of our family. One method of protecting them is to have a disaster-resilient home. The ability of a home to recuperate after a disaster is a glimpse of what home insurance is. 

Read More: Here’s why you should get a life insurance when buying a home

On the other hand, the Philippines and its islands are often damaged by floods, typhoons, landslides, earthquakes, volcanoes, and droughts since they are located near the boundary of major tectonic plates and at the middle of a typhoon belt. In addition, The Philippines also ranks among the top three countries in the world for population exposure and vulnerability to hazards. Accordingly, residential properties might be destroyed by these catastrophic calamities. Seeing your home destroyed by natural disasters can be upsetting, as this is a dwelling place for you and your family.

Insurance is an investment that serves a purpose other than to safeguard the insured against potential financial distress. Many Filipinos, however, are unwilling to invest because they feel it is just for the wealthy and those who wish to plan for an untimely death. The older generation is still unaware of the value of insurance as an investment, which has an impact on the younger generation. Many people believe that home insurance is an extra cost. Looking ahead, getting your property insured will provide you with the peace of mind you deserve.

What is a Home Insurance?

Home insurance is a need to safeguard you from financial distress if your owned residential property (house, apartment, townhouse, or condo) is damaged due to unforeseen circumstances. The coverage will compensate for damage to your property and valuables caused by a storm, fire, theft, vandalism, and so on. This implies you won’t have to bear the financial load if something bad occurs to your residence.

A Home Insurance is not that new to Filipinos as these had been a requirement from mortgage lenders. Since purchasing a house insurance coverage for your property, you may demonstrate to your mortgage lender that your home is adequately protected from natural disasters or disaster damage, ensuring that they will not lose the overdue loan amount.

Overall, the daily uncertainty of ‘what could go wrong’ emphasizes the importance of insurance if unfortunate events should occur. While it is impossible to prevent such occurrences, at least financially, people have control because insurance policies can protect them from impending challenges.

What are the Types of Home Insurance?

Since there are so many insurance providers in the Philippines, there is also a diverse range of home insurance policies available. As a result, it is suggested for you to research on the policy that best meets your needs. Moreso Currently, there are two general types of home insurance available in the Philippines:

Standard-type Insurance

A standard house is a basic type of insurance which can cater for your basic home needs. This type of insurance coverage protects you financially against loss or damage to your home caused by risks. This is the most basic level of insurance coverage available, covering only the goods mentioned in your policy and is often appropriate for individuals owning seasonal cottages or campers. This option is less expensive than the one indicated below; but you take on greater financial risk if something happens to your house.

Comprehensive Insurance

Comprehensive (also known as “all risk”) coverage protects your house and valuables against any losses, with the exception of a few exceptions that will be clearly stated in your policy. Besides from fire and lightning, this insurance covers damage or loss caused by other natural or man-made disasters such as volcanic eruptions, earthquakes, flash floods, storms, tsunamis, explosions, and traffic accidents. The complete homeowner’s insurance may also cover loss or damage caused by bursting pipes or water tanks, firefighting damage, burglary, rioting, and other malicious acts committed by any people, depending on the package.

List of Home Insurance in the Philippines: Must-Have Property Insurances

Will I Need Home Insurance in the Future?

Climate statistics show that the Philippines is expected to continue to have negative consequences on the lives of the Filipino people on health and well-being, the environment, and the economy. Accordingly, the frequency of hot days has been increasing (i.e., daily temperature increase) and this trend is expected to continue through 2050, with yearly mean temperatures rising by 1.8 degrees Celsius to 2.2 degrees Celsius11 with serious consequences for health. In addition, according to future projections, there will be a decrease in summer rainfall and an increase in spring rainfall. Rainfall has increased in the island groups of Luzon and during the monsoon season, Visayas experiences an increase, whereas Mindanao experiences a drop. Droughts and floods are both more likely, which will adversely influence the economy.

What Does Bria Homes Offer?

Most Filipinos are satisfied with their monthly paycheck, which is sufficient to cover their bills and basic needs. While not everyone has the luxury of purchasing a home in cash, most families will opt for the installment plan because it is more practical. While this is true for the vast majority of families, it may be stressful to include additional monthly expenses in the allocation of the monthly family budget.

With that, Bria Homes offers an affordable house and lot solutions for the dreaming Filipinos to assist them in reducing their concerns of costly payments. Bria, which has long been a household brand in real estate development, ensures that they are not only selling houses and lots but ensures to build resilient communities that assist one another in recovering from disasters.