flood insurance coverage for homeowners in the philippines

Insurance Coverage for Filipino Homeowners At Flood Risk

One of the most common problems in the Philippines is flooding. This is why homeowners should consider having the right insurance to cover damages from natural disasters, including floods. So let’s talk about the benefits of flood insurance, its coverage, and tips on how to take advantage of the best policy that meets your needs.

Why Do You Need Flood Insurance

The geographical position of the Philippine archipelago is vulnerable to typhoons and earthquakes. With this, many regions in the country have a high risk of flooding, especially during typhoon season. Imagine having an average of 20 tropical cyclones every year. It’s high time homeowners explore the advantages of having flood insurance.
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Moreover, climate change also plays a big role in flooding as weather events become more extreme. Drainage systems also get overwhelmed when intense rainfall hits a flood-prone area. According to the World Bank, the Philippines is indeed vulnerable to climate risks. Therefore, the right insurance policy is important for homeowners to survive this potential financial damage.

​What Is Flood Insurance

After recognizing that flooding is a serious threat, the next step is to understand how flood insurance can help you. Flood insurance is specifically designed to provide protection from losses and damages due to flash floods. This policy covers direct physical losses to an insured house due to flooding, including the following:

• Structural damage, including foundation, floors, walls, and other parts of the home or building.
      
  
• Personal items damage, including clothing, furniture, and appliances.
      
  
• Cost of debris removal in the flooded home or building.
      
  
• Temporary living arrangement costs depend on the specification of policy coverage.
  

Always check the exclusions and other limits of the flood insurance policy before getting one. Make sure it covers all your needs after a flood in your subdivision home or single-detached home. Pre-existing conditions and other damages not directly caused by flooding may be excluded in the policy.

​How to Insure Your Property

Insuring your home for flooding is an easy process with key options including:

1. Private insurance company – there are so many private insurance companies that offer flood damage coverage in their home insurance packages. You can check out their websites to see information about their flood insurance products.
       
   
2. Group insurance – this policy is ideal for homeowner’s associations looking to include flood coverage in their insurance plan. You can ask your local community organization if this option is available.
       
   
3. Existing policy add-on – for existing policies, flood insurance may already be included in the benefits. Or you can add it as a rider to ensure you can claim for damages due to flooding.

​Final Thoughts

Getting flood insurance in the Philippines is simple; just make sure to shop around so you know your options. Once you understand what the policy covers, decide which insurance you want to apply for. If you want to invest in your next home that is free from flooding, you may visit REALS.PH for our exclusive listings of house and lot in Baguio City. Our seasoned real estate agents can assist you throughout the buying process.