Why Renters Need Home Insurance?
Many Filipinos are superstitious and believe that getting insurance, whether it is life or health, is like they’re admitting that something disastrous will inevitably happen to them, and most Filipinos want to shy away from the thoughts to keep them safe during their everyday life. Most people also think that getting insurance is reserved only for the elite, those who can afford it without worrying about any other expenses.
The fact is, many Filipinos cannot afford to get insurance, especially when they factor in their other daily expenses. The situation can be a bit different regarding home insurance, though, as many people think that they don’t need to get insurance when they’re only renting their homes.
The landlord might have insured the home before letting someone else live in it, but it typically only covers the structure itself and the contents that the landlord owns and not the renter’s possessions.
Renters don’t necessarily need to get the homes they’re living in insured since they don’t own it, but they can insure its contents. The landlord’s insurance won’t cover the renter if they fall victim to accidents, burglaries, or other disasters.
To secure home insurance focusing only on its contents, renters must catalogue the items they own including their furniture, clothing, electronics, collectibles, books, equipment, jewelry, and others. Financial experts suggest to “save receipts and photographs or videotape everything; then store copies in a safe deposit box or other off-site location” so that they can settle their claims faster.
There are several payout options that renters can choose from for their properties including the ACV or Actual Cash Value coverage which pays for the amount that you need to repair or replace your belongings with depreciation and deductibles being deducted from the coverage and the Replacement Cost coverage that covers the amount you need to replace your items without any deduction from depreciation.
Why Get Renter’s Insurance for Condos
People might not want to get insurance for their properties when they’re renting since it’ll just add to their expenses or invite trouble due to their superstitious beliefs. People who are renting condominium units to live in are probably more well-off when compared to other people. Having to pay the rent is already costly enough for many people, and losing their stuff to disasters will significantly harm them financially when they have to replace their lost possessions.
Availing non-life insurance for the rented condominium unit ensures that the renter’s efforts in securing their belongings will not go to waste. As long as the insurance plan covers events like fires and earthquakes, two common reasons why people lose their homes, then the renter is secured from having to shell out significant amounts of money to replace their items. One may have already spent thousands on their belongings, but spending a few more to insure them is significantly cheaper than having to pay for all the damages yourself when disaster strikes.
How to Lower the Costs of Home Insurance
Many people don’t want to get home insurance because of their costs, but there are ways for people to get cheaper insurances. One way is by not getting the insurance coverage that they don’t need. Not getting fire coverage means that people must look for a place to rent that’s far from fire-prone areas and to update any old wirings in the home they’re living in to reduce the chances of fires from breaking out.
People will need to look for a place that’s situated away from high-risk areas.
Where to Get Good Home Insurance
There are already multiple established and trusted insurance companies in the Philippines that are authorized by the Insurance Commission to operate. Several banks also provide different types of insurance plans that renters can choose from.