Electrical faulty wiring, lit cigarettes, unattended stoves, gas leaks, and candles – these are the common causes of fires in our home in the Philippines. However, it’s not all the time we can be watchmen to these causes. Unprecedented fires can happen that may burn our houses, turning it to dust. Since these events are unexpected, we are left behind the ashes thinking we could have prevented it. But here’s the catch: while fire prevention is vital, a fire insurance in the Philippines from the best insurance provider is more important. Avoid fire damage costs which are, more often than not, a hefty amount of money.
Last 2017 and 2018, The Bureau of Fire Protection (BFP) recorded a total of more than 30,000 fire incidents nationwide. This took the lives of over 500 civilians and lost almost P10 billion worth of property. Sadly, the number of fire incidents continues to rise each year. Unfortunately, even if your house got destroyed by fire, the problems do not end there. There’s still a need to pay for damages, relocation, and in some cases, hospitalization. Most people can’t handle all of this at once. Therefore, there is an urgent need for a fire insurance in our homes.
How Does A Fire Insurance Work?
Fire insurance helps you secure investment and cover damages in the event of fire accidents. Most insurance policies include fire insurance as its benefits. But a person who owns a property, depending on the budget available, can also purchase standalone fire insurance. If the insured properties get caught by fire, the insurance company gives you the financial help you need for reconstruction. In a scenario that the fire incident completely destroys an insured property, the insurance company covers the monetary value of the items.
Homeowners may already have fire prevention installed in their houses such as fire extinguishers, smoke detectors, safety ladders, sprinkler systems, and easy to open windows and screens. However, this equipment will most likely be rendered obsolete depending on the degree of a fire incident. Also, since we don’t have the power to predict when it may happen, a fire insurance should be prioritized as much as installing fire prevention equipment.
There are types of property that standard fire insurance can cover. A policyholder can protect residential units and commercial buildings that are either undergoing construction or already completed. Furthermore, the contents of these insured buildings such as personal effects, furniture, tools, and fixtures are also covered. However, it is good to take note that jewelry and cash is not part of the coverage of fire insurance. Besides what was mentioned, disjointed structures that are part of the property are still covered. Moreover, automobiles that happened to be inside the building in the event of a fire incident are also insured.
Limitations Of A Fire Insurance Policy
As helpful as a standard fire insurance can be, it can only do so much as to protect insured properties from fire and lightning incidents. Here are some exclusions that you need to know upon purchasing insurance:
· Natural Disasters
Earthquakes, earthquake fires, volcanic eruptions, typhoons, flooding and any natural events that may cause harm to your properties are not part of standard fire insurance. Most of these can also trigger fire incidents, but it is not covered.
· Malicious Damage
Riots and strikes are also causes of property destruction. It can even happen at any time, but it just doesn’t have an element of fire that is why it is not included in fire insurance coverage.
· Other related but excluded incidents
Smoke, explosion, and spontaneous combustion seem to be misunderstood as part of fire insurance but be informed that it is usually not part of its typical coverage. Falling aircraft and vehicular impact, no matter how much damage it can also cause, is generally not part of the coverage as well.
It is not common to have misunderstandings of the coverage of an insurance policy. Sometimes, policyholders tend not to read the terms and agreements. This usually leads to misconceptions of the insurance benefits. This is why it is essential to know what is inclusive and what is exclusive in fire insurance that you purchased. As a homeowner, you can also try to maximize your protection by combining it with other insurance policies or just buying a packaged deal insurance offers. Holding a fire insurance policy is a smart way of protecting your property from these unforeseen fire incidents.