MANILA, Philippines - It's got a white picket fence, a manicured lawn, those slate shingles you've always wanted, and a gazebo, all in 500 square meters of prime land. Finally, your dream home!
Next to relationships and business, it's in our home that we invest so much time, attention and money. Whatever the size or style, our home is an extension of ourselves, and shelters everything that we hold dear. Which also means we'd go the whole nine yards to protect it. Now that's reason enough to buy some home insurance.
Actually, there's only one kind of home insurance, explains Allan V. Tamayo, branch manager of Generali Pilipinas Insurance Co. This home insurance, he adds, "covers basic perils, specifically fire and lightning." The homeowner, however, can specify add-ons to the package to broaden the protection offered to cover "earthquakes, floods, typhoons, riots, strikes, malicious damage, burglary and finally, public liability."
But whatever policy you choose, says Tamayo, it's important to understand how home insurance works to avoid "potential financial misfortune."
Security tops the list of reasons that prompt homeowners to buy home insurance. "Having one gives you peace of mind," explains Tamayo. Whatever damage unforeseen circumstances may wreak on your home, at least you know that the insurance will take care of it, he adds.
It's particularly important to have home insurance in this country, Tamayo underscores, because "we're prone to such perils as earthquakes, typhoons and floods." The tropical climate also increases the risk of home damage. "The intense heat adds to the risk of fire. In fact, the government has declared March, the start of summer, as fire prevention month."
Buying home insurance isn't so simple, however. On top of the premiums one has to pay, a lot of other factors have to be considered. First, the type of policy you need, based on an assessment of the level of protection you're after. Do you want special provisions for your valuables like jewelry, antiques, books, musical instruments, camera equipment, and expensive home appliances?
"First, know the estimated worth of your house and its contents," advises Tamayo. "This gives you an idea of the total amount of protection you may get."
Consider your surroundings as well, especially if you live in a flood-prone area and risk water damage to your possessions.
Prepare to give a good deal of information once you apply for home insurance, including your employment history and previous addresses. As in other insurance policies, you may have to undergo a background check to see if you are a "good risk."
Other details pertaining to the house itself should also be provided. "Exact location of risk, complete name of owner, complete address, how much protection is needed, boundaries of the house, classification of the house (whether it's class A, B or C in terms of structure), type of house (bungalow, two or three storeys),and its make - is it concrete or wood?"
A lot of factors go into determining the premium you have to pay. How old is the house? Where is it located? How big is it? How many rooms? Does it have central air-conditioning?
Before signing on the dotted line, cautions Tamayo, "make sure you understand everything that's stipulated in the contract." Don't be afraid to ask questions. A good insurance agent welcomes questions and should be able to explain the insurance's provisions clearly.
Go over the policy again. "Confirm the amount of coverage you have indicated, and make sure that all details pertaining to your house are accurate. Moreover, if you requested for some perils to be included in the coverage, these should be among the provisions stated in the policy," says Tamayo.
Keep an original copy of the policy and ask for one if it isn't supplied to you. "Go over the rates stipulated to make sure everything is right. Should you have other concerns, do not hesitate to ask your agent so there won't be any uncertainties."
Before you settle on buying a particular home insurance, remember to do extensive research on different policies. More than just material possessions, your home and everything in it are part of your life and shape your family's memories. It deserves a little more time for you to go shopping around to find the best and most comprehensive coverage and protection.
Top Three Questions to Ask Your Agent Before Taking the Plunge
1. How fast will I be able process a claim?
2. Will I be able to get the full amount of the insurance?
3. What documents do I need to prepare when making a claim?
Resource:
http://showbizandstyle.inquirer.net/sim/sim/view/20070520-66935/Home_insurance_101
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