Whether you’re a first-time buyer or a longtime homeowner, purchasing a new home is an exciting process. Going to open houses or visiting homes for sale with a real estate agent allows you to see what qualities you want in your future home and what features you don’t. Finding your ideal new home and beginning the purchasing process is exciting, but it can also be stressful. Overthinking about prices, preparing for home inspections, and mortgage requirements may take away from the fun of purchasing a property.
Although it is not necessarily required by the law, getting house insurance is sometimes neglected in the extensive list of things to complete before buying and moving into your new home. Obtaining homeowners insurance prior to closing is a critical step in the home-buying process that should be prioritized especially if you get a portion of your funds from a house loan.
Mortgage lenders will refuse to lend you funds unless you can show proof that you have purchased this form of insurance.
Before we dive in when is the best time to get a home insurance?
In most cases, house and lot property insurance is purchased prior to closing on a house. You can protect your new home from disaster by getting the coverage you need before you even move in. It’s crucial to compare different insurance policy alternatives because they may provide varying levels of coverage. Once you’ve discovered the suitable insurance for you, make sure it fits your lender’s needs. Most banks will not finance a mortgage or a home equity line of credit unless the property is insured. Some lenders may even require you to acquire additional coverage in addition to a standard homeowners insurance.
You can get insurance after confirming that the coverage limit (based on replacement cost values) you choose fits your lender’s standards. This should be completed before you attend the closing meeting for your house. When the final closing date approaches, the insurance provider will usually pre-approve the policy and wait for your escrow/title firm to issue a Proof of Insurance request. Before the closing date, the insurance company will email or fax coverage confirmation.
Note that covering the full replacement cost is better than just actual cash value.
Getting a house is a long process and lots of paper works especially loaning a funds as well, to guide you for your home purchasing journey you may read Frequently Asked Questions of First Time House and Lot owners: Frequently Asked Questions of First-time Homeowners | Affordable House and Lot for Sale |Bria Homes
Policies of the best home insurance in the Philippines include four (4) essential types of coverage:
1. Interior and Exterior Damage of the House
The best home insurance will reimburse you if your residence is damaged by fire, hurricanes, lightning, vandalism, or other covered calamities. Floods, earthquakes, and poor property upkeep are typically not covered, and you may need to purchase additional policies if you want that sort of coverage. Freestanding garages, sheds, and other structures on the property may require their own coverage, following the same standards as the main home.
2. Personal belonging coverage
The best home insurance will protect you if your furniture, clothes, sports equipment, or other personal belongings are stolen or damaged due to allied perils such as fire, storm, falling aircraft, or other insured calamities. Most insurance providers cover 50 to 70 percent of the cost of a home’s structure insurance. Off-premises coverage is included in this section of the insurance. This implies that unless the policyholder is in a location the is off the coverage of the policy, their things are insured anywhere. Jewelry, furs, and silverware are normally protected, however there are usually cost restrictions if they are stolen. Individuals can acquire a specific personal property endorsement or floater and insure the item for its appraised value to insure these goods to their full worth.
Standard homes insurance will cover trees, plants, and shrubs. Theft, fire, lightning, explosions, vandalism, riots, and even crashing airplanes are all covered. They are not protected from wind or illness.
3. Liability Protection
The best home insurance will protect policyholders and their family members from claims for bodily harm or property damage they cause to others. It also covers pet-related damage, whether your dog accidentally bit your neighbor or your house visitors. Up to the policy’s agreement, the liability details of the insurance covers both the expense of defending the policyholder in court and any court hearing. Basically, it is an insurance that will protect you from a lawsuit of others.
4. Additional Living Expense
The best home insurance will cover your expense if your residence is uninhabitable due to damage from a fire, storm, or other insured events, this covers the additional costs of living away from home. While the house is under renovation, it covers hotel room costs, daily meals, and other living expenditures. The amount of coverage for additional living expenditures varies per employer.
Optional Home Insurance Coverage:
Fire Insurance
A fire insurance protects your home in case of fire accidents. Fire insurance policy usually covers direct loss or damage to a particular property caused by an insured peril during the covered period.
Flood insurance
protects your home and possessions from damage caused by flooding. It’s a different insurance with a deductible of its own. If you reside in a flood-prone state or area, this coverage is a smart idea, and depending on your location, it may be needed.
Earthquake insurance
protects your home in the case of earthquake damage. This coverage has its own deductible as well.
Replacement cost plus
is an additional level of coverage that can help you rebuild your house after a total loss. If you’ve had your home for a long time and are concerned about depreciation, adding additional replacement cost coverage to your policy can be a smart option.
Sewage or drain backup
which is an undesirable but frequent problem for homes, water backup of sewer safeguards your house.
Other structure insurance
protects anything that isn’t linked to your house, such as a gazebo, shed, or detached garage. If you have any of these buildings on your property, you should insure them to prevent having to pay out of cash in the event of an accident.
Personal umbrella liability
protects beyond the policy limitations established in your basic homes policy, insurance offers additional coverage for physical injury, property damage, malicious damage, and personal harm to others.
Medical payments coverage
may cover medical expenses incurred as a consequence of an accident on the customer’s property. This coverage is meant for rapid medical care of customers’ visitors on their premises, regardless of fault.
Ordinance or law insurance
it is implemented if you need to reconstruct your home to meet current building rules after a covered loss. If you have an older house, it may be a wise decision.
Brand New Belongings
is an optional add-on endorsement that can help you restore or replace specific belongings following an insured loss without taking into account of deterioration or depreciation.
Better roof replacement
It is an optional coverage that can help you repair your roof to be stronger and safer.
Now that you get the basic grip of knowledge you need to know before acquiring home insurance, listed down below is the list of home insurance companies in the Philippines.
Number one in the list of home insurance companies in the Philippines and the top-rated is Malayan Insurance Company Inc.
- Malayan Insurance Company
In terms of Gross Premiums Written, Malayan Insurance Company, Inc. topped the Insurance Commission’s list. Malayan Insurance leads the next insurer on the list by almost a billion pesos.
Malayan Insurance has been the Philippines’ biggest non-life insurer for companies and families for almost 50 years. Malayan Insurance entered the Philippine insurance industry with new products and services such as travel insurance and motorbike insurance.
- Prudential Guarantee & Assurance, Inc.
Prudential Guarantee & Assurance ranks second on the Insurance Commission’s ranking and has done so for numerous years. Prudential Guarantee is one of the Philippines’ largest non-life insurance firms, with gross premiums written of over Php 9.8 billion.
Prudential Guarantee has grown to include around 39 offices across the country, with more on the way. Several of the firm’s clients are among the country’s top 1,000 businesses.
- Pioneer Insurance and Surety Corp.
In the Insurance Commission’s rankings, Pioneer Insurance & Surety Corporation is ranked third. Pioneer’s gross premium written is around $500 million less than Prudential’s, yet it remains one among the Philippines’ biggest corporations.
Pioneer has been providing non-life and life insurance to Filipinos for more than 60 years. Property, marine, automobile, and aviation insurance are among its non-life insurance offerings.
- BPI/MS Insurance Corp.
The Bank of the Philippine Islands and Mitsui Sumitomo Insurance Company have formed a joint venture called BPI/MS. BPI/MS is one of the Philippines’ top insurance firms, and it can be counted on to deliver exceptional services that allow people and businesses to accomplish their goals without worry.
BPI/MS strives to protect people from being lost in the face of the country’s various uncertainties. Based on gross premium written, BPI/MS is placed fourth.
- Charter Ping An Insurance
Charter Ping An is dedicated to providing the best insurance services for our client’s interests, requirements, and protection.
Based on gross premium written, Charter Ping An Insurance Corporation is rated sixth among non-life insurance firms in the United States and brings the same quality of services here in the Philippines. Fire, vehicle, marine, personal injury, bonds, casualty, and engineering insurance are only some of the goods and services offered by Charter Ping An.
- FPG Insurance Co., Inc.
FPG Insurance is the Philippines’ largest insurance company and one of the top insurance companies in Southeast Asia. Based on gross premium written, it is rated sixth among non-life insurance businesses in the country. The Zuellig Group of Companies, which is well recognized for its appropriate comprehensive insurance plans in Asia, founded FPG in 1958.
FPG Insurance has over fifty years of expertise in the sector and is committed to offering clients innovative insurance solutions.
- Standard Insurance Company, Inc.
Standard Insurance Company is one of the top 10 non-life insurance firms in the Philippines, with a gross premium written ranking of seventh. Standard Insurance aspires to be one of the top 10 best general insurers in the world by the year 2035.
Standard Insurance strives to provide the finest level of insurance coverage and service to its customers.
- UCPB General Insurer Company, Inc.
UCPB General Insurers Company, Inc. was placed seventh among the Philippines’ various non-life insurance businesses. The BSP, or Bangko Sentral ng Pilipinas, has given UCPB permission to cross-sell insurance products through its many offices countrywide.
BSP permitted UCPB to sell the insurance products of its first insurance partners, United Coconut Planters Life Assurance Corp. (COCOLIFE) and UCPB General Insurance Company, Inc. (UCPB GEN).
- Pacific Cross Insurance, Inc. (Blue Cross Insurance, Inc.)
Pacific Cross is well-known for its great medical and travel insurance plans, which are the result of the company’s knowledge of the stresses that might arise from falling ill or being involved in an accident. Based on gross premiums written, Pacific Cross Insurance, Inc. is the ninth insurance firm on the Insurance Commission’s list of non-life insurance companies.
Pacific Cross wants their customers to have as little stress as possible when traveling.
- PNB General Insurers Company, Inc.
The Philippine National Bank’s non-life insurance company, PNB General Insurers Co., Inc., began operations in 1991. The non-life insurance firm is presently one of the Philippines’ fastest-growing and most competitive businesses. Based on gross premiums written, PNB General Insurers is now rated tenth among the country’s insurance providers.
As it expands its business across the country, PNB Gen strives for quality in service.
PNB Gen has a 60-million-dollar advantage over the next insurer on the list.
After a long list of home insurance companies in the Philippines that is entirely credible in terms of helping you protect your assets, take note that having a homes insurance coverage will not prevent damage to your house or valuables, it may provide a financial safety net in the event that the unthinkable happens. So be sure to read all the policy, terms and condition thoroughly and don’t take the word of the salesperson for granted it is always good to do your own research as well.
It is true that achieving your dreams requires a tedious task and endless papers. Be sure to that it is worth your while, get a house that is worth all the trouble and investments. BRIA Homes, one of the Philippines’ premier housing developers, is positioned to offer affordable house-and-lot packages and condominium apartments accessible to ordinary Filipino families.
