House and Contents Insurance Explained

We’ve done a lot of research about this and we find this topic not talked about often (or not familiar). Here’s what we’ve known so far.

To think about it, house and contents insurance is not only for the rich. If you are part of the two-thirds under the wealth triangle (those who are not so well-off), then you should have to consider getting one as this is a protection. What would happen to you if you do not have any savings should emergency pertaining to your house arise?

Real scenario just happened while I am writing this.

This just happened this afternoon. In our building fb group chat, a tenant in the next floor chatted that there is an emergency because there is an ongoing burglary in their floor. The tenant managed to secretly film the burglar, called the guards and the police that led to the arrest of the suspect. This all happened in broad daylight on a Saturday morning. The nerve of the suspect makes me cringe!

But, what would happen if the suspect wasn’t caught? The victim would have lost precious belongings. Did you know that there is an insurance that covers burglary? This is called Contents Insurance. Read on to know more.

There are actually two common insurances (Contents and Housing Insurance) that you need to consider if you have a housing and commercial properties. In this post, we will lay down the benefits of getting both Contents and Housing Insurances.

Torn between buying a house or constructing a house? This will help you decide.

Contents Insurance

Content insurance, which is also known as home contents insurance or personal property insurance, is a type of insurance that focuses on protecting the belongings and possessions inside the house, contrary to the typical house insurance which focuses on the structure of the property.

Before you ask me about the probable figure of monetary investment, I think it would be equitable to let you know the importance of content insurance and why taking one is the right thing to do.

Personal Belongings Protections

In the event of proven theft, fire, or other covered perils, your insurance will cover the loss or damage of the personal belongings in your insured property. Normally, your insurance provider will help replace or repair the items inside the insured property reducing the financial burden of the homeowner. This includes electronics, appliances, furniture, clothing, and other valuable items. This is perfect to be paired with home insurance as things inside your homes are not covered by house insurance. There is a bundle insurance called Home and Contents Insurance which is financially helpful in case of emergencies.

Peace of Mind

If it cost you your peace of mind, it isn’t worth it, they say. Thus, if it gives you peace of mind, IT IS worth it. Home content insurances assures you as tenants and homeowners have financial protection in case of unfortunate events, enabling you to focus on other aspects of your life without worrying about potential losses. If you have enough spare cash, why don’t you add this to your insurances.

On the other hand, here are the benefits of housing insurances.

House Insurance

House Insurance, which is also commonly known as Homeowners Insurance, on the other hand, insures your house as a structure. It is crucial to developing countries like ours, the Philippines, because we are more prone to economic vulnerabilities. Further, our country sits right next to the pacific ring of fire and beside the Pacific Ocean. Meaning, we are geologically more prone to natural disasters.  

Here are reasons why you should get one.

Asset Protection

For many people, their home is their most significant asset. In the event of a disaster or unforeseen circumstance, having insurance coverage ensures that their investment is protected. Rebuilding or repairing a home can be costly, and insurance can provide the necessary funds to restore the property.

Boosts Credit Score

Home owners with insurance are more likely to have access to credit and loans. Lenders, to protect their investment, requires insurance coverage as a condition before providing loans and mortgages that are related to housing property. The huge credit line availability will be useful for homeowners and real estate investors to improve their houses to further appreciate its value.

Protection Against Liabilities

Provided this clause is added to your housing insurance, your insurance not only covers damage to your property but also with liability protection. Meaning, when someone is injured inside your insured property and you as the homeowner is found legally responsible, your insurance may help cover the costs of the potential legal fees and medical expenses.

Since lenders are more lenient with percent interests to housing property compared to vehicles (since its value appreciate), be sure to protect these assets and you as well by getting housing insurances.

Natural Disaster and Economic Vulnerability Protection

Developing countries, including the Philippines, are often prone to various natural disasters such as typhoons, earthquakes, floods, and landslides. These events can cause significant damage to homes and properties, leading to financial burdens for homeowners. Insurance coverage can help mitigate the financial impact of such disasters by providing funds for repairs or rebuilding.

Setting aside a small amount of money for housing insurance would help you get back on your feet should unwanted incidents happen.

Peace of Mind

Owning a home without insurance can be stressful, especially in regions with a high risk of disasters. House insurance offers peace of mind to homeowners, knowing that they are financially protected against potential losses.

Since you are now familiar with the differences and similarities of contents insurance and homeowners insurance, let’s go dig deeper. You may now ask which companies offer these insurances?

Here’s what we’ve researched, so far.

(Disclaimer: We are NOT affiliated with any of the companies stated here. We just found them in the search engine and we believe they can help you weigh down on whom to choose for your house and content insurance.)

1. Howden Home and Contents Insurance

Founded in London, United Kingdom way back 1994, Howden is one of the largest international insurance company that is headquartered outside USA. Their home and contents insurance that covers a wide range of perils varieties including:

  • Fire
  • Earthquake
  • Typhoon
  • Flood
  • Subsidence, Landslide & Collapse
  • Electrical Fire
  • Bush/Grass Fire
  • And a lot more

You also have the option to include personal accident coverage like Accidental death and dismemberment, unprovoked murder and assault, and burial expenses .

Howden group website link:

2. Malayan Home Protect

When insurance comes into the topic, it is impossible to not mention Malayan Insurance. Their basic perils covered includes the following:

  • Fire
  • Lightning

Other perils that can be covered:

  • Earthquake
  • Typhoon
  • Flood
  • Explosion, vehicle impact, falling aircraft
  • Malicious damage like riots and strike

Other add-ons and extensions

  • Personal liability insurance
  • Replacement of locks and keys
  • Architect & surveyor’s fee
  • Valuable items protection

Malayan Insurance website link:

3. FPG Insurance

Another property insurance that is known in the Philippines is FPG Insurance. What we like about their website is that you can see the amount coverage since it is reflected on their homepage.

Their insurance covers the following and a lot more.

  • Fire, Lighting and Thunder
  • Earthquake
  • Typhoon or Windstorm including flood and overflow
  • Volcanic eruption
  • Subterranean fire
  • Robbery, burglary, and housebreaking

FPG Insurance website link:

4. AIG Property Insurance

One of the top home and contents insurance of the world, that is AIG. Their Property All-Risk Insurance covers these basic perils.

  • Fire and Lighting
  • Eathquake
  • Typhoon and Flood
  • Falling Aircraft
  • Impact damage
  • Riot, strike and malicious damage

What we like about this property insurance is you can have an option to add Machinery Breakdown, Electronic Equipment, Business Interruption and even Property Terrorism in their policy.

AIG Insurance website link:

Since these four companies offer both home and contents insurance in the Philippines, it also is clear to say that they have similarities especially with the option to add accidental death and stuff like that. Go message them and inquire about it. Don’t doubt about it, you need a property insurance if you have properties. Spare some cash for it.

Weigh down which one is best for you. You may need to consider the availability of these insurance companies in your area. Also, you may want to approach several insurance companies and see which one is best for your needs and budget.

We were not able to include every property insurance provider in the Philippines. But let us know what you think.

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