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Does Your House Have Fire Insurance?

Funny how the lending bank is prudent when it comes to protecting its interests (in this case a house and lot) while the actual owners of a real estate property is not too keen on protecting their own assets.

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Got my fire insurance documents from the mail today. It was auto-renewed by the bank handling my home loan. Which reminded me to ask every Juan out there:
Does your house have fire insurance?

Sadly, insurance is not a popular investment in the country, more so fire insurance (by the way, yes I used to sell VUL).

I actually have one since my house is mortgaged to a bank and it is part of the annual requirements, so that in case of fire, the bank gets paid some amount to cover for the outstanding loan, even if the property for collateral gets destroyed.

Funny how the lending bank is prudent when it comes to protecting its interests (in this case a house and lot) while the actual owners of a real estate property is not too keen on protecting their own assets.

The charitable-Ilocana (er my wife) and I agreed that once I fully pay our house and lot (hopefully this year), we will still continue to avail of fire insurance.

The thing with insurance (especially those with no withdrawable amounts such as life insurance, auto insurance, unlike VUL) is that it is always an afterthought coverage, a benefit in hindsight. You get some benefit when something already happens. So Juan does not usually appreciate paying for it annually when it doesn’t really feel any benefits as of the moment. When in fact, Juan should realize that insurance is an investment-must based on foresight.

But that’s really what it’s for. For an amount almost like your credit card annual fee, you can already protect your house (its structure) and its contents. Some also have additional benefits such as coverage for injury due to fire, or coverage for loss of life or limb etc.

It’s much cheaper than life insurance because claims due to a fire are much less frequent and less costly on the side of insurance companies. And Juan does not have to avail of coverage for the land area, just the actual house and structure. Having one is an investment must.

Maybe it’s not popular because there are many of  us who are just renting a house?

But for those who have their own homes, no matter how small, a product of your sweat and tears and decades of hard work, don’t just let an accident burn your house down. As they say in Filipino:

Di bale nang manakawan, huwag lang masunugan.

Thieves choose what to steal, a fire spares nothing. Get covered. Avail of a fire insurance.

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About Geri (355 Articles)
Founder and main author. Husband, used-to-be-breadwinner, God-made multi-millionaire, employee, financial planner and adviser, investor, stocks trader, entrepreneur, agri-preneur, book author. Firm believer that all Pinoys deserve a richer life. Not a guru, but a forever student of the investments world, a work-in-progress.

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