Image via WikipediaWhen nature calls, it's time to wake up.
The flooding from tropical storm Ondoy that began on September 26, 2010 served as a grim reminder on the violent side of nature. Indeed, Filipinos, rich and poor, are vulnerable. And floods are just minor problems. Earthquakes are actually more damaging.
According to the Philippine Insurers and Reinsurers Association (PIRA), 133 natural catastrophes happened all over the world in 2009, killing 150,000 people, majority of them in developing countries like the Philippines.
So how do you protect yourself from natural risks? Get insured. Here are six things you should know before buying insurance:
1. Insurance is within your reach
It's not true that property insurance is expensive. Based on the tariff set by the Insurance Commission, the insurance premium for a concrete house is only 0.18 percent, or less than one percent of the sum insured. So if you have a P100,000 house, that's only P180 a year. That's only 49 centavos a day.
2. Concrete houses need fire insurance
Concrete houses also burn. they have wooden partitions, wooden ceilings, and most of the time the only thing concrete are the walls. If they burn down, only the walls would remain. So you need insurance to repair your house. And you need insurance also for the contents of your house which could burn in case of fire.
3. The mandatory insurance is never enough
Basic property insurance that you pay as part of your loan protects your house only against fire and lightning. Floods, earthquakes, volcanic eruptions and other so-called natural perils are not included. They don't cost much to add, however. The rate mentioned (0.18 percent) already includes these perils.
4. There is insurance against burglars
A homeowner should assess the risks being faced by his house. If he lives outside a gated community, he probably would need burglary insurance. It may be a wise investment particularly during times of economic crisis when theft is on the rise.
5. Buy insurance eve if you don't file claims
Insurance is something you buy but don't intend to use. It is just an answer to the "what-ifs" of life, a means to control the uncontrollable. You will not get rich from insurance, but it will surely prevent you from becoming poor in case tragedy strikes.
6. Buying insurance is very easy
Just call you agent and he will ask the necessary information from you, then an inspector will come to check on your house, then you will get a proposal. If you agree on the proposal, a policy is made and you can get it within the day.
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