Compare the best Home Insurance in Philippines
Compare Home Insurance
Your home is one of the biggest investments you'll ever make. Make sure you protect it by choosing the right home insurance coverage.
Frequently asked questions
Q: Why do I need home insurance?
Natural disasters can wreak havoc on your home, and these perils may cost you a lot for repairs. With home insurance, you can rebuild your home worry-free as the policy will take care of the expenses from the repairs of your damaged property.
Q: What does home insurance cover?
Home insurance covers losses and damages caused by perils such as fire and/or lightning, earthquake, typhoon, flood, landslide, and other malicious damage such as riots and strikes. The coverage can also extend to falling aircraft, vehicle impact, smoke, and explosion.
Q: What is extended coverage?
Extended coverage may be added to your home insurance policy for extra protection. It can cover burglary, rental allowance, extinguishments and mitigation expense, and firefighting expense. It can also cover your house helpers like your “kasambahay”, gardener, and driver.
Q: What are acts of nature?
No one wants disasters to befall their home; unfortunately, they are often inevitable, and without insurance coverage, the best you can do is expect the worst but hope for the best. Insurance companies consider natural disasters and catastrophes like floods and earthquakes as “acts of nature” or “force majeure, which is French for “superior force.” Acts of nature are usually unforeseeable, unavoidable, and out of your control, plus, the damage they can do to your home can be very costly. Below are the instances considered as acts of nature in a standard insurance policy:
- Windstorms: hurricanes, tornadoes, severe thunderstorms, hail, ice storms
- Volcanic eruptions
- Civil unrest
- Acts of terrorism
Q: What is BWD or BOWTAP?
BWD stands for broad water damage, which refers to damage to your home caused by floods or waterbacking up from sewer systems into your home. This also includes BOWTAP or bursting or overflowing of water tanks, apparatus, or pipes.
Q: How much does home insurance cost?
The minimum premium of home insurance (exclusive of taxes) ranges from ₱1,000 to ₱3,000 per year.
Q: Is my property insurable even if I live within flooded area?
Home locations that are within flooded area will be subject for approval of the insurance company. If approved, the premium of your home insurance package may be higher than the standard one.
Q: Are there locations that home insurance doesn’t cover?
Unfortunately, locations within one (1) kilometer distance of the known earthquake faultline are not acceptable for being insured. Some insurance companies also consider these locations not acceptable:
- Pasay (Baclaran, Divisoria, Malibay)
- Kalinga Apayao
- Marawi City
- Sultan Kudarat
- Sulu Province
- Lanao del Sur
- North Cotabato
- Reclaimed areas, congested/conflagration areas
Q: What type of property can be insured with home insurance?
(Strictly) residential or private dwelling is a basic property that can be covered with home insurance. Single and detached unit and apartments (up to five  residential units) can also be insured.
Q: Up to how much can be insured?
The maximum amount of insurable property varies from provider to provider. Some have a maximum of ₱10 million, while some can go up to ₱25 million.
Q: How is home insurance premium calculated?
You might be wondering why insurance premiums vary even though the homes are in the same area, and here’s why: premiums are dependent upon property information like age of the property, type of construction, and claims history. Below is a list of what information might be requested from you by your insurance provider:
- Type of construction, e.g., tile roofs, hardwood floors, etc.
- Age of the property
- Claims history or “losses” experienced in the previous years
- Rebuilding cost or sum insured
Subject to the information above, your provider will apply an “insurance rate” to be multiplied to the sum insured. The formula then becomes:
Gross annual premium = Sum insured x premium rate
Premium tax = Gross annual premium x premium tax rate
Net annual premium = Gross annual premium + Premium tax
₱5,000,000 x 0.12% = ₱6,000, the gross annual premium
₱6,000 x 2% = ₱120, the premium tax
Hence, the net annual premium will be ₱6,000 + ₱120 = ₱6,120
Q: What factors affect your home insurance premium?
- Type of insurance plan
Your insurance premium will depend on the type of coverage availed. You can choose a plan that covers your home only or both the home and its contents. Depending on your chosen plan, the value of the home, plus the value of the personal belongings in it will be considered.
- Value of home or property
The value of the home doesn’t refer to the actual market value of the home but to the reconstruction cost. This is determined by multiplying the built-up area of the property and the construction rate per square feet.
- Value of contents of home or property
Value of personal belongings must be specified by the insured. Depending on your chosen insurance plan, your provider may cover part of or the whole cost of your belongings.
Q: What are the other benefits of home insurance?
- Family Personal Accident Coverage (Accidental Death and Disablement)
- Principal Insured – up to ₱100,000
- Spouse – up to ₱50,000
- Children (max. of 3-4 legitimate or legally adopted children between 1 and 21 years old, and residing at the insured’s declared premises) – up to ₱25,000
- “Kasambahay” Coverage
- Up to ₱5,000 per “kasambahay” to cover clothing and other personal belongings
- Up to ₱5,000 per “kasambahay” for medical expenses due to accidental bodily injury