Compare the Best Fire Insurance in the Philippines!

Keep your home, office, or other properties safe from fire especially during summer. We’ve compared the top fire insurance in the Philippines for you to see what benefits and features suit your needs.

Fire Insurance FAQs

What is a fire insurance policy?

A fire insurance policy is a written agreement between the insurance provider and the policyholder in which the insurer pays for the loss of use of the insured’s property damaged by a fire up to an agreed amount. The contract also states the annual premium that the policyholder should pay to the insurance company. Policies are valid for one year and can be renewed every year.

In the Philippines, a fire insurance policy is typically offered as a stand-alone product. Some non-life insurance companies bundle it with more extensive home insurance, property insurance, or casualty insurance packages.

What types of properties are covered?

Fire insurance coverage includes any of the following buildings or its contents:

• Residential properties such as houses, condominiums, townhouses, etc. (may include household content like fixtures, lights, furniture, appliances, flooring, etc.)
• Commercial buildings such as hotels, restaurants, retail stores, malls, etc. (may include goods and stocks)
• Warehouse buildings
• Industrial buildings such as bakeries and factories (may include machinery and equipment)
• General structures such as schools, churches, hospitals, clinics, etc.

What types of disasters are covered?

Fire insurance only covers accidental fires like those caused by lightning, faulty electrical connections, or gas explosions. Incidents due to arson, or intentionally setting fire to insured properties, are not covered. Depending on your insurance policy, it may also cover other catastrophes.

According to the Insurance Code of the Philippines (Republic Act 10607), fire insurance includes coverage “against loss by fire, lightning, windstorm, tornado or earthquake and other allied risks, when such risks are covered by extension to fire insurance policies or under separate policies.”

What are allied perils?

Perils that are not included in the disasters mentioned earlier are called allied perils. If an insurance policy includes coverage for allied perils, it may also cover loss or damage resulting from any of the following events:

• Earthquake shock
• Typhoon/Flood
• Vehicle impact/Falling aircraft
• Explosion
• Smoke damage from a faulty heating or cooking unit
• Riots/Strikes
• Malicious damage caused by any person
• Riot/Fire due to a strike or lockout

This also includes man-made disasters such as explosions and falling aircraft, and events resulting to these disasters like loss of profits and business interruption.

Is fire insurance mandatory in the Philippines?

Fire insurance is not mandatory for residential properties in the Philippines unless the property is financed through a housing loan or used as collateral in a loan. For example, it’s automatically included in a Pag-IBIG housing loan. Premiums for fire insurance and mortgage redemption insurance form part of the monthly amortization.

As for commercial buildings, a fire insurance policy is a requirement for the Fire Safety Inspection Certificate issued by the Bureau of Fire Protection (BFP). This certificate is a prerequisite for a Business/Mayor’s Permit, Occupancy Permit, or any business license. Thus, you can’t operate a business in the Philippines without fire insurance.

Why is fire insurance important?

Mandatory or not, getting your property insured against fire is crucial for your financial protection. The risk of fire in the Philippines is always present, what with its hot climate.

Fire can also happen anytime—you’ll never know when it could hit. Even if you’re doing everything to prevent fire in your home or office, fire from a neighboring property can turn your million-peso worth of assets into debris and ashes in a matter of hours.

What are the advantages of fire insurance in the Philippines?

Fires can cause a huge loss. If you insure your property, you can gain the following benefits:

• Compensates for the cost of repair, replacement, or rebuilding of the insured structure and its contents
• Pays for other costs such as temporary accommodation (for homeowners) and medical bills of injured employees and death benefits to the families of deceased employees (for businesses)
• May also provide financial protection against floods, earthquakes, and other natural disasters
• Gives peace of mind and a sense of security knowing that in case of fire, your family can have a new shelter or your business can continue to operate

How much do I need to pay for fire insurance in the Philippines?

Fire insurance premiums in the Philippines cost from ₱950 to ₱2,000 per year for basic coverage of ₱1 million. Roughly, that’s ₱80 to ₱166 every month. For the same price as a cup of milk tea per month, you can already insure your investment.

What other benefits do fire insurance offer?

Insurance providers include additional benefits that cover expenses incurred during or from the aftermath of a fire. Some examples include:

• Automatic increase clause/capital additions clause
• Professional fees
• Fire fighting expenses
• Debris removal
• Legal assistance
• Home assist

Some insurance providers will even cover for alternative accommodations, relocation allowance, alterations and repairs, hospital allowance, and ICU assistance, among other benefits.

Depending on your chosen coverage, these services may be included for free or require an additional fee. The higher your premium, the more benefits will be included.

Are there any exclusions to fire insurance?

Affordable fire insurance usually has exclusions depending on the allied perils it covers and the situation it entails. For example, MAPFRE covers flood in their allied perils list but only includes certain areas to be covered. Malayan covers vehicle impact and falling aircraft but doesn’t cover glass parts of the property damaged in the accident.

How are fire insurance premiums computed?

Insurers consider the following factors in computing the actual premium of a policy:

• Nature of the use of the property (general/residential/warehouse/industrial)
• Materials the property is made of (wood, cement, steel, etc.)
• Number of occupants
• Location of the property

Owners of properties with a higher risk of fire, such as warehouses, industrial properties, and those located near a high-risk area like an explosives factory, pay higher insurance premiums.

On the other hand, properties within low-risk locations (i.e., near a fire station) and residential structures have lower premiums. For residential properties, those made of cement and/or steel have lower rates than those made of combustible materials like wood. Also, a house occupied by a family of at least five is insured for a higher price than one occupied by four people or less.

To estimate your premium, refer to the Philippine Fire Tariff that sets the minimum rates for fire insurance in the Philippines.

How do you get fire insurance here in the Philippines?

Not only is fire insurance affordable, it’s also easy to get. Filipinos have several options to purchase a policy:

• Traditional method. Talk to an insurance agent who will handle the insurance purchase on your behalf. The agent will then bring your policy to you.
• Direct method. Visit the office of an insurance company if you don’t have an agent yet.
• Online method. Request a quote on the insurance company’s website, pay the premium online (or through any accredited partner), and receive your policy through email.

For more convenience, if you already have life insurance or car insurance, you may opt to buy fire insurance from the same provider.

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