Property Insurance: Protect Your Home, Valuables, and Yourself

It's exciting buying an affordable house and lot for sale, but with great homeownership comes great responsibility. With a country geographically located in the Pacific Ring of Fire, many areas are at the receiving end of volcanic eruptions, earthquakes, and typhoons. Even the most sturdy of houses can be shaken and bear the brunt of nature's wrath.

Hence, the house and lot in the Philippines that protect you need protection, too.

This is when home insurance policies come into the equation. In this article, Lumina Homes will present you with a useful guide on what you need to know about home insurance policies in the Philippines, their benefits, and why you should be getting one for your own home.

What is Home Insurance?

Homeowners insurance policy serves as financial protection in the event of a natural disaster and accident involving your home. These catastrophic events could be typhoons and earthquakes, as well as crimes such as property damage and theft.

Homeowners who have home insurance coverage will be saved from financial nightmares should a property-shattering natural disaster befall the area that they are living in.

Types of Home Insurance

There are three main types of home insurance coverages: actual cash value, replacement cost, and extended replacement costs.

• Actual cash value. This type of coverage will pay the homeowner the replacement cost for a destroyed property based on its actual cash value. This means that if a property is one year old, you will get the amount based on this depreciated value.

• Replacement cost. This coverage type will pay the policyholder the actual replacement cost values at its present price or exact value.

• Extended replacement cost. Policyholders will be paid more than their limit in case the costs for construction have increased.

To understand more about what types and coverages for homeowners insurance policies that you can avail of, refer to the following insurance coverages.

1. Structural Coverage

This type of property insurance policy covers property damage including roof, walls, and foundation cracks due to fire, earthquake, and other related causes.

2. Liability Coverage

If you have a home insurance policy and you are held liable for damage to property that is not your own, the insurance company will cover the damage costs.

3. Personal Property Coverage

Loss of personal possessions such as furniture, electronics, and even jewelry (may incur higher premiums), will be covered by your provider should you choose this coverage in your plan.

4. Flood Insurance Coverage

Property damage caused by natural disasters, especially flash floods, will be covered by your insurance provider. Opting for this coverage is catered to those living in flood-prone areas.

5. Fire Insurance Coverage

Fire incidents are also fairly common in the country, so a fire insurance policy should give homeowners some kind of relief in case of unexpected fire incidents involving their homes.

What is the Top Benefit of Having Property Insurance?

Having homeowners or renters insurance to protect your home and belongings all boils down to having peace of mind. Earthquakes and volcanic eruptions can transpire without warning. And while the intensity of typhoons could be forecasted, their actual impact can only be seen a day after their most powerful attack.

With all this being said, having property insurance could be a financial saver in times of calamities. This also applies to incidents of theft, fire and allied perils, as well as other occurrences such as falling aircraft, riot, strike, and malicious damage to property.

How are Home Insurance Costs Calculated?

Property insurance costs vary per house and the type of insurance plan that a person is going for. Below are factors that affect the amount of premium that a policyholder will pay for.

Type of Insurance Plan

Insurance plans vary from basic to comprehensive, which may include coverages outside simply insuring your property. If you want coverage for your jewelry in the event of theft, it is likely that your premium will be higher.

Home Location

There are certain areas in the country that are more typhoon-prone than others. Perennially hit regions include Calabarzon, Central Luzon, and the Bicol region. Areas that are near active volcanos, such as Taal in Batangas, may incur relatively higher premiums.

House Condition

Lastly, newer homes will likely have cheaper premium costs compared to house and lots which are decades old. The overall condition of your house may be inspected to make a reasonable pricing based on this factor.

Choose the Best Provider for your Homeowners Insurance

There are several home insurance providers in the Philippines. Needless to say, choosing the right provider can spell the difference when it comes to protecting your home, your valuables, and yourself. Some of the most reputable homeowners insurance providers include Malayan, MAPFRE, and AXA Philippines, among others.

To ensure that you will get the best deals, research each company by going to their websites, scrutinize their variety of insurance plans, and pick which one suits your needs. You can also be on the lookout for discounts that an insurer may offer new and aspiring policyholders.

Aside from choosing the best provider for your homeowners insurance, it is equally important to choose a trusted homebuilder if you're still on the hunt for an affordable house and lot investment.

Lumina Homes, one of Vista Land's housing segments, is a major industry player in real estate for more than 10 years. We have been awarded by Pag-IBIG Fund and Carousell Property Awards for our affordable housing provisions, which have satisfied the home and lifestyle needs of our present Lumina homeowners.

Lumina Homes communities are generally located in less flood-prone areas, and are strategically situated near vital establishments, such as hospitals, academic institutions, marketplaces, and transportation facilities, to make homeownership a breeze for Filipino families. We have over 50 housing communities in Luzon, Visayas, and Mindanao.

Embark on a virtual journey of available properties, choose which house model and location attracted you, and make a home reservation online. Contact us today and get your dream house and lot at a reasonable price!