Malayan Insurance has been around for almost 9 decades now and we’ve protected thousands of homes and families; we’ve been part of their recovery and rebuilding. We’ve spoken with so many individuals across generations and we it is our duty to make sure that every home and family is worry-free. So, whether you are a client or not, we would like you to know more about typical queries and stories that would be helpful as you buy a new home, rent a new property or while you are considering getting home insurance in the Philippines.
Mrs. Reyes has had her property for years and makes sure that her house is insured, never skips a year, never forgets to renew. Having seen the news about Freddie Aguilar’s house being totaled by a fire, including his mementos, she is thinking of getting another home insurance policy from another provider to add to the existing one. Can she do this?
If Mrs. Reyes secures another insurance coverage for the same property without the consent of the insurance company of the first home insurance policy, the policy (insurance contract) involved becomes invalid.
What we suggest is that before you buy a home insurance policy from any provider is to not just look at how much the premium or price is – look at the coverages and benefits and compare. Make sure you have the best that you need and speak with your non-life insurance agent about making sure your home is safe and has low risk.
Some years after, Mrs. Reyes decided to move to a smaller property and sold her house to Mrs. Rico. However, Mrs. Reyes forgot to assign the existing home insurance policy of the house to Mrs. Rico. If an accidental file occurs, how can Mrs. Rico make a claim?
Unfortunately, Mrs. Rico cannot use Mrs. Reyes’ home insurance policy to make a claim. When a property is sold, its policy must be endorsed to the new owner or the new owner must acquire a new home insurance policy.
Bejamin received his home insurance renewal from Malayan Insurance. He noticed a new fire hydrant has been built near his house. He wants to speak with his Malayan Insurance agent to ask if his premium can be reduced because of his new fire extinguishers.
Insurance premium may be reduced with the purchase of fire fighting equipment to suppress or fight fire such as external hydrants with hoses and water supply connection; fire trucks and sprinklers will surely reduce the insurance premium. His Malayan Insurance agent also advises him that if he wants his home insurance coverage reduced further, Benjamin must do away with inferior building construction and to keep out from hazardous trades. Premium is dependent on the extend of fire hazard. The greater the hazard or exposure, the higher the premium; the lesser the hazard, the lower the premium.
These are the fundamental factors that affect the rate of a building:
- Construction – the nature and the construction of the exterior walls, type of building, its physical dimensions, the material used in the building, etc.
- Occupancy – the purpose for which the building is used or occupied
- Location – the exposure the hazards helpful in determining likelihood of fire spreading to the insured building from surrounding structures. Exposure, in this case, refer to the proximity of the property being insured to another building, the construction or occupancy of which may be of a more hazardous nature.
- Protection – the availability of fire-fighting equipment and personnel to put out a fire should one occur.
- Boundaries – the buildings, open spaces, streets on the four sides of the risk, specifying the building construction and occupancy, width of open spaces or streets.
Danny was surprised to find out that one of his properties is no longer insured despite having bought his home insurance himself right after acquiring the property 3 months ago. They usually live in another home and leaves this newly acquired property unoccupied. He called the nearest Malayan Insurance branch to get an explanation.
Malayan Insurance branch representative explained that an insurance company can suspend home insurance policy during the period of the coverage if the building insured or containing the insured property becomes unoccupied and remains at such condition for a period of more than 30 days. Since the property has ben unoccupied for 3 months (90 days), the insurance company suspended the policy. Danny can get another policy and ensure that it is occupied, tended for and looked after more often to avoid policy suspension. Here are other conditions by which an insurance company can suspend the policy:
- If the trade or manufacture carried on is altered or if the nature of the occupation or the other circumstances affecting the building insured or containing the insured property are changed in such a way as to increase the risk of loss or damage by fire;
- If the property insured is removed to any building or place other than what is stated in the policy, and;
- If the interest in the property insured passes from the insured, or there is a change of interest (not applicable if the change of interest is passed from the insured by will or by way of the operation of law).
We encourage you to go online and see what Malayan’s Home Protect Plus – comprehensive home insurance product – covers and how it can be of help when you need it. You can get a free quotation online by filling-out Malayan’s online form. Our team would be happy to talk, chat or email you through making sure you get the protection you need.
Written By Kristina Relampagos