For most homeowners, their real estate property is their most prized and cherished possession. But its value can quickly vanish if it gets burned to the ground.
Fire is one of the greatest enemies of real estate assets. Knowing the danger it poses to property and people’s lives, it’s important to get fire insurance.
But what is fire insurance exactly? Know the basics and more in this guide.
Fire insurance is a type of property insurance that covers losses due to fire.
Is fire insurance included in home insurance? Usually, fire is already covered by property insurance, but you can purchase a separate fire insurance policy if you want more protection.
Is fire insurance required? That will depend on the property you own.
For residential properties, it’s mandatory if the house is financed through a housing loan or used as collateral. If you own a commercial building, you also need a fire insurance policy—it’s a requirement for getting a Fire Safety Inspection Certificate[1] issued by the Bureau of Fire Protection.
Just like other types of insurance, fire insurance is a form of protection. In case of fire, it protects you financially by covering losses and costs, such as repairs and construction.
With this insurance, you’re not starting from scratch after a fire since you have money to rebuild your property. You won’t need to deplete your savings when covering expenses related to repairs, reconstruction, and compensation of the affected.
Depending on your policy, the insurance may also cover temporary accommodation while the property is being fixed, plus medical costs in case someone sustains injuries while inside the burning property.
Ultimately, a fire insurance policy gives you peace of mind.
Read more: 10 Fire Prevention Tips You Need to Know Now
Your fire insurance policy covers accidental fires resulting from faulty electrical connections, lightning, and gas explosions.
Depending on your inclusions, the following may be covered by the insurance:
If you want to expand your coverage, you may add the following to your policy:
While fire insurance policies have a broad scope, they also have limitations. Below are the usual circumstances not covered by this protection:
Do I need fire insurance? If you’re one of the following, you may need to get this kind of policy.
How much is fire insurance? That will depend on the property you own and the coverage you want. The more inclusions you want, the more expensive the policy gets.
For basic coverage of ₱1 million, you may need to shell out somewhere between ₱1,000 and ₱3,000 per year. Nevertheless, it’s also possible to find more affordable plans if you want fewer inclusions.
Read more: Protect Your Home and Workplace: Know the Importance of a Fire Extinguisher
Now that you have the answer to “What is fire insurance?”, you may want to look into your options. Check out some of the top providers of fire insurance policies in the country:
Stronghold Fire Insurance covers personal or business losses due to fire. It includes typhoons, floods, and earthquakes. Depending on your need and budget, you may choose to get extended coverage for more comprehensive protection.
This fire insurance from SGI Philippines covers residential fires, commercial fires, and industrial all-risk plans. Extensions, such as Acts of God and Allied Perils, are also available. What makes it a standout policy is its provisional housing feature.
Looking for a fire insurance policy with extensive allied risk coverage? The Mercantile Fire Insurance covers malicious damage, explosions, riot, theft, and even loss of rent. Allied perils, on the other hand, include earthquakes and windstorms.
Pioneer’s residential insurance is a full coverage policy for residential properties, including their contents. Other natural calamities, such as earthquakes, typhoons, and floods, are also covered.
GSIS also offers fire insurance called GSIS Home Shield Fire Insurance. It covers fire damage in residential properties, but you have the option to get additional coverage for typhoons, earthquakes, and floods.[3]
The following are qualified to avail of the insurance:
If you own a commercial property, check out this comprehensive fire insurance policy from Chubb Insurance. It covers the following properties across different industries:
What is fire insurance? Simply put, it’s a kind of protection every homeowner and business owner needs—it’s a necessity. If you have one, it’ll keep you from losing too much money in case of fire.
If you want to know your fire insurance options, compare the country’s top insurers via Moneymax. Click the banner below to get started.
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