Now that you’ve finally secured the condo unit you’ve been wanting to rent for the longest time, it’s time to take measures to protect your belongings and get home insurance. Paying for the monthly rent to house your stuff will take a major slice of your budget so why let this all go to waste when disaster strikes? According to the Asian Disaster Reduction Center, the Philippines experiences an average of 20 typhoons yearly. The National Statistical Coordination Board reported that most fire-related incidents from 2010 to 2013 happened in residential areas.

Availing of non-life insurance in the Philippines for your rented condo ensures that all the blood, sweat, and tears spent to acquire your belongings won’t be rendered worthless when unfortunate events such as fires and earthquakes happen. Having an insurance means having a graceful fallback when your stuff gets destroyed by natural or man-made disasters.

Before you call a trusted agent, it’s important that you do your homework about home insurance for rented condos. Here are some basic facts and condo insurance tips you should know in making that important step towards secured condo living in the Philippines.


Why should you get a condo insurance?

The answer may be obvious already but not all can understand just how important this is. Imagine losing your home in a fire or earthquake. What will happen to you and your family if you lose your home and belongings? You can rent another unit if this happens but what about the thousands you already sunk in furniture, appliances, and personal belongings like jewelry and cash? All this can be wiped out in a matter of minutes or hours. If your condo is insured, you can receive enough cash to replace your damaged belongings. This type of home insurance gives you security and peace of mind, which are definitely worth the additional expense you will pay for the policy.

What does it cover?

For tenants and renters, only their possessions can be protected by this insurance. A basic condo insurance policy provides coverage for your belongings, which include cash, jewelry, furniture, and appliances. The insurance will pay you the cost of the stuff you lost. The insurance company will make computations based on replacement cost minus depreciation. It also covers improvements to the interior of your condo unit, as well as legal liability for incidents involving injury or damage to visitors. The coverage will also provide assistance if your condo will prove to be damaged or unlivable.

What are the specifics of the coverage?

Aside from personal property replacement cost, your insurance will also cover specifics like additional living expenses, business property on and off premises, fire department service charges, computers (for certain perils), debris removal, personal injury liability, manuscripts, theft of silverware and goldware, theft of firearms, and damage to trees, plants, and shrubs.

How about the costs?

The amount you have to shell out will depend on the value of your belongings and the coverage of insurance. The more extensive the coverage, the more expensive it will be. So make sure you choose the coverage that you really need.

How can I lower the costs of my insurance?

A practical condo renter will do whatever it takes to get the most out an insurance policy by getting the right coverage for the right price. There are several ways to cut the cost of your insurance. Don’t get coverage that you don’t really need, as stated in the third item. You can make changes in your home to make it a better insurance risk. For example, you can update old wiring and heating systems to make your condo less vulnerable to fires.

If you’re still choosing from condos for rent in the Philippines, it would help to consider home insurance policies. Choose a unit that is far away from fire prone areas or in locations that are near fire stations. A property in a high risks area will fetch higher insurance costs.

Where can I get good insurance?

Get in touch with established and reputable insurance companies and those that are authorized by the Insurance Commission. These include MAPFRE Insular, Federal Phoenix, Paramount Life & General Insurance Corporation, and Prudential Guarantee. You can also contact banks such as Banco De Oro (BDO) and Bank of the Philippine Islands (BPI), which provide different types of insurance plans. Contact at least three insurance companies and get a quotation from each of them. Compare their rates and coverage to know which plan is suitable for your needs.

Resources for finding the right insurance company are plenty. Ads for insurance companies are everywhere, from billboards to television. You can take it from there and do your own research online. There are insurance websites that offer sample computations of their policies which is perfect if you want to get an idea of the costs. Keep in mind that you still have to consult an agent to get the final computation.

Getting personal referrals is a good way to get in touch with a reputable agent. Relatives and friends can attest to the reputation of an agent, which is one less thing to worry about. You’ll get to know which insurance companies pay its claims. In comparing insurance companies, consider important factors such as reputation, customer service model, claims process, and deductible rates.

Getting a condo insurance policy will require careful planning as far as budget is concerned but remember, as a responsible condo dweller, that it’s something you can’t do without. It is an added expense that you will have to allot budget for as a condo renter. Cutting back on luxuries and other unnecessary costs will be worth the sacrifice as long as you have the security and peace of mind that only home insurance can give you.