Living in a subdivision in Cabuyao, Laguna, and owning a property you can finally call yours is fulfilling and all goods not until unforeseen problems and issues are experienced. And given the nature of the world we live in, we cannot do anything about it for it is inevitable.
However, some processes can help you safeguard your home and cope with it. One of which can help you protect not just your family but also your property from any harm or damage caused by unfortunate events and that is called property insurance.
What is Property Insurance?
For everyone’s information, property insurance is a policy that covers any loss or damage caused by natural disasters or any other perils such as floods, earthquakes, damaging wind, theft, vandalism, bodily injuries, or fire.
When homeowners experience any of the aforementioned factors, the insurance company will help and assist them in recovering certain losses and damage. Property insurance protects certain assets like buildings, townhouses, apartments, your house and lot situated in the subdivision in Cabuyao, Laguna, or any stolen or damaged furniture, clothing, or items.
How does Property Insurance work?
Property insurance is made so that homeowners won’t have to carry the burden of recovering and rebuilding properties alone. Although the terms, conditions, and coverage highly vary on the insurance company, rest assured that property owners with this insurance won’t have to worry so much anymore. This is an agreement to which the property owner pays a certain amount to make sure that when something unfortunate happens to their property or the people inside the property, someone will provide them the assistance they will need.
Insurance companies assess and evaluate the situation to determine the appropriate solution. There are three (3) types of property insurance coverage—actual cash value, replacement cost, and extended replacement cost—which property owners can receive depending on their situation.
(1) actual cash value is the payment replacement cost made to renters or owners subtracting the depreciation value of the item or property. (2) replacement cost coverage pays or replaces an item or property of the same value. On the other hand, (3) extended replacement cost covers the construction of a property more than its limit, especially when prices become more steep but will usually not go past 25%.
Types of Property Insurance
But how will you know if your property is covered by the insurance? Fret not because listed below are the different types of property insurance available for your property even if you’re living in a subdivision in Cabuyao, Laguna.
Homeowners Insurance
In the event of theft, vandalism, injury, or catastrophes, a homeowners insurance policy covers the house itself, your personal belongings, liability insurance for when someone is injured and needs medication, and additional living expenses when the situation is serious that it forces you to find a temporary living space.
Condo Insurance
Just like the first one, condo insurance protects your personal belongings, while also providing liability insurance and living expenses. The only difference is that while homeowners insurance protects the whole property, condo insurance only extends to the interior of the condo unit which includes the walls and floors, and does not apply to the whole building where the unit is located.
Mobile Home Insurance
Mobile home insurance policy covers the same as the two above which are liability insurance, protection of personal belongings, living expenses, your dwelling, and the property itself. However, the insurance coverage varies because some don’t include it in the policy while some do. The good thing is you can adjust its coverage and customize its policy according to your terms.
Landlord Insurance
Landlord Insurance typically covers the property that is being rented out to the public. It also covers the property dwelling, liability insurance, and items or furniture owned by the landlord only. It does not include the personal belongings of the renters for that’s another story. However, shared items or belongings used in the property are also covered as well as lost income from rental if the business is forced to halt its operations for repair.
Renters Insurance
For people who are renting a property and suddenly experience perils, the renters’ insurance does not cover the whole property as they are only renting but it makes sure that they are protected by giving liability insurance, medical payments, personal belongings, and additional living expenses.
Flood Insurance
This type of insurance isn’t usually included in standard property insurance and must be added and purchased separately. It only covers personal belongings and any physical damages to the property itself.
Earthquake Insurance
With seemingly comparable coverage to flood insurance, earthquake insurance coverage extends only to the damaged property, and personal belongings. The difference is that it also provides additional living expenses. It must also be purchased separately as it’s not included in standard property insurance policies.
How much does it usually cost?
Property Insurance costs vary greatly depending on the insurance company and other several factors. If you live in a high-crime or disaster-prone areas, the insurance may be more higher than the others. Several other factors that affects the cost of the policy includes the age and condition of the home, its type and size, the overall value of the property, and the the items it will cover.
Is Property Insurance that important?
If you want to have a safety net when something like unforeseen adversities happens, then yes, it is important! While it is not necessary and required, property insurance is as important as having a property because it saves you and your property from experiencing severe losses or damages.
Property Insurance: Safeguarding your home
Unfortunate incidents can happen to your property and it usually occurs when you least expect it. As mentioned, it is inevitable but you can be prepared. Lessen the burden you have to carry and safeguard your properties with the insurance policy that works best for you! Property insurance does not only protect your investments but is also the way to a stress-free and hassle-free life.
