When people spend their hard-earned money on a condominium in the Philippines, they are purchasing a precious asset that has the potential to increase in value over time. The burden of maintaining it from burglary, flood damage, fire, natural disasters, and other unforeseen events is uncertain and could be an additional cost for owners. Condo insurance covers a lot and can help in this situation. Thus, condo insurance is a necessity if owners own a condo in Las Piñas and they want to ensure the safeness of their investment as well as the property itself.
What is Condo Insurance Philippines?
Condo insurance is a kind of insurance policy that means if anything happens inside the property such as unfortunate incidents in your condo unit, it will be covered by the company. The role of insurance is to prevent your finances from loss or damage brought on by numerous calamities like vandalism, burglary, fire, and disasters.
Additionally, this kind of insurance offers liability protection, which shields clients from monetary and legal obligations in the event that someone is hurt or their property is harmed while inside your condominium unit. It also includes protection for the unit’s physical structure, liabilities, loss of use, and other things that are all included in the coverage.
Understanding The Different Types of Condo Insurance Policies
Condo insurance policies come in various forms with varying levels of protection and insurance coverage on the market. The following are just a few of the most typical condo insurance policies:
Basic Form Policy
It is a policy that provides coverage for only a handful of perils, such as theft of personal belongings, fire, and certain types of water damage. The least level of coverage is provided by this policy, which is the most fundamental type of condo insurance.
Broad Form Policy
Broad Form Policy often covers losses brought on by freezing, falling objects, and unintentional water overflows or discharges.
Bare Walls-in Policy
Bare Walls-in Policy is a policy that covers only the building’s structural components, such as the walls, floors, and ceilings but excludes any fixtures, appliances, or personal property. The condo association will normally employ this coverage in buildings where insurance for shared and communal areas.
The Coverages of The Condo Insurance
Depending on the type of policy the condo owner selects, condo insurance often provides protection against a variety of losses or damages. In order to make sure that the needs and concerns of the owner are sufficiently covered, it is crucial to thoroughly analyze the coverage provided by various condo insurance policies to know what is required to have and understand the different options. Here are some types of coverage
Dwelling Coverage
Dwelling Coverage which safeguards the unit’s walls, floors, and ceilings;
Personal Property Coverage
Personal Property Coverage which guards the owner’s possessions like furniture and electronic devices;
Liability Coverage
Liability Coverage shields the owner from lawsuits or claims brought against them for personal injury or property damage and provides financial aid if the owner is unable to remain in the unit.
How Does Condo Insurance Work?
The Condo insurance policy in the Philippines protects the owner of a condominium unit financially in the event of unplanned events that can lead to damaged possessions or other goods. In exchange for insurance against particular risks or dangers, the owner pays an insurance company a premium. In the event of a covered incident, the owner may file a claim with the insurance company in order to receive financial compensation for any losses or damages sustained, up to the policy limits.
To claim the insurance, the client should provide proof of the damages and that they are the owner of the unit. Then the insurance company will assess the claim and give compensation to the owner according to the policies covered. The role of the client is to know their insurance rights to get the most out of it. It is also important to know good companies in the Philippines that offer these kinds of insurance since there are a lot of scammers these days, to avoid being scammed, owners should do thorough research to ensure quality service is provided.
Why Condo Insurance is a Need For Owners?
Since insurance provides financial protection to the owner and without condo insurance, the cost of any replacements or repairs necessary as a result of an incident would be exclusively the owner’s burden and would have additional living expenses. Particularly if there is severe damage or if the owner is the object of liability claims, this can be a big financial strain and result in increased living expenditures.
As a further requirement of owning a unit or getting a loan, some homeowners association groups, condo associations, and mortgage lenders could demand condo insurance from an insurance company. Fines or other penalties may apply if owners don’t follow these rules.
Is it a Good Move to Avail Yourself of Condo Insurance?
Property insurance is typically a wise choice for owners in the Philippines because it offers financial security. Depending on the policy the owner selects, condo insurance can cover a variety of losses or damages. On the other hand, not buying condo insurance will make unit owners nervous and on edge since they don’t have a safety net if ever something happens and it’s a burden on their part since it is an additional living expense for them. The condo will also depreciate over time if the condo owner does not fix the damages immediately since the materials will be severely affected.
Fortunately, if owners don’t want to live inside their condo in Las Piñas they can rent it out instead. Making more cash flow on their name, Crown Asia is offering Vista Leasing Services to condo owners who want to rent out their condos for a long time. Clients can do this to create an additional passive income and turn their units into an asset and produce actual cash value. This way, owners can utilize every space possible by grabbing all opportunities while everything is insured and good to go.
Read more: Everything To Know About Condo For Sale in Philippines
