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House Insurance in the Philippines: Do You Really Need It?

Written by Rouselle Isla | Jun 15, 2023 8:00:00 AM

Buying a home is one of the biggest financial milestones you'll ever reach. Whether you've just moved into your first condo, bought a family home, or finally finished building your dream house, you've invested years of hard work to get there.

House insurance helps protect that investment. It can help you recover financially if unexpected events like fire, typhoons, floods, or other covered incidents damage your home or belongings.

In this guide, we'll explain how house insurance works in the Philippines, what it covers, how much it costs, and how to choose a policy that fits your home and your future.  

What is House Insurance in the Philippines

House insurance is a type of property insurance that covers loss or damage to your home and the assets inside it. It offers liability coverage in case an accident happens inside the house or on the property. 

As long as you make regular premium payments, the home insurance provider will offset the expense of covered perils in case the home or property gets damaged or destroyed. Every house insurance policy has a liability limit, which will determine how much coverage the homeowner has if something untoward happens. 

Home insurance coverage typically lasts a year, but you can easily renew it with your insurance company. 

Eligible properties for house insurance in the Philippines include single detached homes, townhouses, apartments, condos, and others used as dwelling units. 

Why House Insurance Is More Than Just Another Expense

House insurance is more than just protection against unexpected events—it's a way to protect one of the biggest financial investments you'll ever make. Whether you've just bought your first home, moved into a condo with your spouse, or are raising a growing family, the right coverage can help safeguard the progress you've worked hard to achieve.

Unexpected events like fire, typhoons, floods, and other covered perils can cause significant damage to your property and disrupt your finances. Repairing or rebuilding a home can cost hundreds of thousands or even millions of pesos. With house insurance, you won't have to shoulder those expenses entirely on your own, helping you recover faster and stay on track with your long-term financial goals.

House insurance can also be a practical requirement if you're financing your home through a mortgage. Many lenders require borrowers to insure their property to protect both your investment and theirs. Even if it's not mandatory, having the right coverage can help ensure that a single unforeseen event doesn't undo years of saving and planning.

Read more: Homeowner’s Guide to Mortgage Redemption Insurance in the Philippines

Types of House Insurance Coverage 

You can get standard and comprehensive home insurance coverage in the Philippines. There are limits to each option’s coverage, which you can see in the house insurance policy details.  

🏠 Standard Homeowner Insurance

A standard home insurance policy covers any damage or loss from fire, lightning, flood, typhoon, and other covered perils. It provides coverage for the structure of your home and your personal belongings. 

Moreover, it covers any costs incurred when repairing or reconstructing your house due to water damage by sprinkler leakage or overflowing of water tanks, fittings, or pipes. 

Standard homeowner insurance also covers your personal belongings, such as jewelry, cash, furniture, fixtures, and appliances, if damaged or destroyed by any covered peril. So if you’re wondering if aircon is covered under home insurance, yes, it is.  

Read more: 10 Fire Prevention Tips You Need to Know Now  

🏠 Comprehensive Homeowner Insurance

Depending on the insurance provider, you can get different packages for comprehensive homeowner insurance. 

You get coverage for fire and lightning damage or loss. Your property is also covered for other man-made or natural disasters, such as vehicular crashes, burst pipes or water tanks, flash floods, volcanic eruptions, earthquakes, etc. 

Some insurance companies may also offer extras like personal liability insurance, insurance for household employees, hospitalization coverage, and relocation allowance. 

How Much is House Insurance in the Philippines? 

House insurance cost in the Philippines varies on many factors, such as the following: 

  • Type of home - Insurers look at the replacement cost or how much it will cost to rebuild your home. The square footage, number of rooms, and architectural style will also affect the cost. 
  • Condition and age - The age of your property and the materials used to build your house can also affect your insurance premiums. Older houses that are not well-maintained and made of flammable materials like wood will have higher premiums.
  • Location - Homes in disaster-prone and high-crime rate areas fetch higher premiums since the chances of incurring damage are high.  
  • Additional coverage - If you want extended coverage to cover the extras, you must also shell out more money.   

💸 What is MGA Fee on Home Insurance? 

Managing General Agents (MGA) perform tasks that insurance companies typically handle, such as underwriting, binding coverage, and settling claims. They act as a middleman between the insurer and the insured, delivering and servicing the insurance agency and the clients. In return, they charge an MGA fee as their commission or service fee. 

List of Home Insurance Companies in the Philippines 

You can get homeowner insurance from the top banks and insurance companies in the Philippines. Here are some home insurance products you can check out.

📌 AXA Property Insurance 

As a homeowner, you know just how valuable your home is. After all, it’s the product of years of hard work.

Protecting your investment and securing it in case of a natural disaster is a must, and AXA Property Insurance[1] helps you achieve just that. It offers protection for the following:   

  • Regular fire (and with allied perils)
  • Fire and lightning
  • Earthquake, fire, and shock
  • Typhoon and flood
  • Smoke damage
  • Explosion
  • Falling aircraft
  • Vehicle impact
  • Riot, strike, and malicious damage
  • Industrial and commercial all risk 
  • Trust receipts 

Read more: Everything You Need to Know About Non-Life Insurance in the Philippines

📌 Malayan Insurance Home Protect

Whether you own or rent a home, it's highly recommended that you get a home insurance policy. Malayan Insurance Home Protect[2] is an excellent option if you live in a condo, apartment, townhouse, or single-detached home. Safeguard your home and belongings and stay protected against other risks like fire and burglary. 

Home Protect has the following features and benefits: 

  • Basic allied perils: 
    • Fire 
    • Lightning 
  • Other allied perils: 
    • Typhoons
    • Floods
    • Earthquakes
    • Falling aircraft
    • Vehicle impact and explosion
    • Smoke
    • Riots, strikes, and malicious damage 
  • Property-related extension: 
    • Personal liability insurance 
    • Alternative accommodation 
    • Accidental breakage of fixed glass 
    • Replacement of locks and keys 
    • Architect and surveyor's fees 
  • Family accident and hospitalization insurance: 
    • Medical reimbursement
    • Hospital cash allowance
    • Surgical and ICU benefit
    • Accidental death, disablement, dismemberment 
    • Burial expense benefit 
  • Household employee insurance: 
    • Personal accident
    • Hospital cash allowance
    • Personal belongings
  • Valuable items protection 

📌 FPG Home Insurance 

Check out FPG Home Insurance[3] for flexible and comprehensive protection of your home, personal belongings, and more. Here’s a list of what it covers: 

  • Perils:
    • Fire, lightning, or thunder 
    • Typhoon or windstorm
    • Flood or overflow
    • Earthquake
    • Volcanic eruption 
    • Subterranean fire 
    • Broad water damage 
    • Water tank apparatus or pipe burst or overflow 
    • Robbery, burglary, or housebreaking 
    • Riot, strike, and malicious damage 
    • Extended coverage against smoke damage, explosion, vehicular impact, and falling aircraft
  • Additional coverage: 
    • Architect or surveyor's fees
    • Internal removal expense 
    • Debris removal expense 
    • Alternative accommodation/loss of rent 
    • Visitor's personal effects 
    • Servant's property 
    • Automatic coverage for silver, gold, platinum, and jade jewelry and articles 
  • Personal liability 
  • Group personal accident 

📌 Prudential Guarantee Property Insurance

Shield yourself financially from loss or damage to your property caused by unforeseeable events like typhoons, floods, earthquakes, and volcanic eruptions. 

Prudential’s fire insurance policy[4] will cover loss or damage caused by fire and lightning. But you may also extend its house fire insurance coverage in the Philippines to include the following allied perils:  

  • Typhoon
  • Flood 
  • Earthquake fire/shock 
  • Smoke, explosion, vehicular impact, and falling aircraft
  • Broad water damage 
  • Sprinkler leakage 
  • Spontaneous combustion 
  • Landslide and subsidence
  • Robbery and burglary

You can also include special conditions to its fire policy, all subject to a limit. These conditions include: 

  • Professional fees clause 
  • Debris removal clause
  • Firefighting expense clause
  • Automatic increase/capital additions clause

📌 BPI MS Home Care Advantage

Take care of that home you worked so hard to build. BPI MS Home Care Advantage[5] is a comprehensive insurance package that protects your home, belongings, and household. 

Its coverage includes: 

  • Fire/lightning 
  • Typhoon 
  • Flood 
  • Earthquake 
  • Riot, strike, and malicious damage

Its coverage can also be extended to include the following: 

  • Smoke 
  • Vehicular impact 
  • Falling aircraft
  • Explosion
  • Landslide and subsidence
  • Bush fire
  • Broad water damage

Here are the benefits of BPI MS Home Care Advantage:

  • Robbery and Burglary Insurance - Maximum limit of ₱150,000
  • Family Personal Accident Insurance - Death/permanent disablement compensation of up to ₱200,000 and burial expense of up to ₱10,000 per person
  • Comprehensive Personal Liability Insurance - Up to ₱150,000 coverage

Additional benefits include rental income, debris removal, temporary removal, firefighting expense, and professional fees. 

Related reading: Starting a Family? Consider These 10 Family Insurance Types

How to Choose the Right House Insurance

Not all house insurance policies offer the same level of protection. The right one depends on your property, your budget, and what you're trying to protect. Instead of focusing solely on the premium, compare policies based on the value they provide and how well they fit your needs.

Before choosing a house insurance policy, ask yourself:

✔ Does the coverage reflect the cost of rebuilding my home?

✔ Are both my home and belongings adequately protected?

✔ Does it include protection against the risks most common where I live?

✔ Am I comfortable with the deductible if I need to file a claim?

✔ Does the policy include valuable benefits like liability coverage or temporary accommodation?

✔ Is the claims process simple and transparent?

Taking the time to compare these factors—not just the premium—can help you choose a house insurance policy that protects both your home and the financial future you're building.

Final Thoughts 

Buying a home is one of life's biggest financial achievements. Protecting it helps ensure that unexpected events don't undo years of hard work and careful planning.

As your needs change — from your first condo to a larger family home — it's worth reviewing your coverage regularly. Comparing policies lets you find protection that fits both your property and your long-term financial goals.

 

Visit Moneymax to compare fire insurance coverage from various providers. It’s quick and easy. Most importantly, using this comparison platform is free.  

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