How does renters insurance work?
If you live in a condo, you may be aware that your home is covered under your condo association’s HOA policy (master policy). But did you know this policy likely only covers your condo’s building and common areas; nothing inside your unit?
If there were an incident such as a fire, storm, or theft, your possessions would not be covered unless you have a separate condo insurance policy.
With the right coverages and limits, condo insurance pays for the repair or replacement of the possessions in your condo from unforeseen incidents such as fires, storms, thefts, tree falls, and lawsuits.
Check out these renters insurance statistics
While you may think your landlord’s policy has you covered, all renters need to buy their own policies to protect their possessions.
Average cost of a renters insurance premium annually
Percentage of renters risking an expensive claim by not having renters insurance
What does
renters insurance cover?
While you may assume renters insurance covers everything in your apartment and more, this may not be the case. Renters insurance has limitations, exclusions, and optional coverages you’ll want to know about.
What is typically covered?
Your personal property- Loss of use (temporary housing if displaced)
- Medical payments to those injured on your property
- Personal liability (if someone sues you from being injured on your property)
- Personal injury (libel, slander, or defamation lawsuits)
- Storm damage
- Water backup
- Theft
- Fire damage
What is not typically covered?
Floods (hint: you may need flood insurance)- Earthquakes (optional)
- High-risk dog breeds
- Wear and tear
- Damage from lack of maintenance
- Intentional bodily injury or property damage
- Any damages beyond your coverage limits (hint: you might need umbrella insurance)
- Anything covered under your HOA master policy
Got condo insurance questions? We’ve got answers.
We know there’s a lot at stake when it comes to protecting your condo. You probably have loads of questions, so let’s get you started on the basics.
Do I need renters insurance?
In some cases, your landlord or apartment complex may require you to have renters insurance, but often it is not required. However, we always recommend it for property and liability protection.
Without renters insurance, you could lose a significant amount of your possessions through theft or a disaster. You could also be uncovered in a lawsuit if someone were to get hurt in your apartment, or even if someone accused you of libel, slander, or defamation.
How much renters insurance do I need?
The answer to this one is pretty simple. If you want full coverage, you should make sure your policy covers the cost of all your possessions.
To figure this number out, you don’t need to work too hard. Just roughly estimate the value of your possessions, overestimating to ensure full replacement coverage.
For items with any limitations, such as jewelry, you will need to purchase extra coverage to cover the value of all your items.
For a more accurate estimate, reach out to your insurance agent.
How much does condo insurance cost?
Renters insurance costs can vary depending on building factors (such as age, materials, etc.) as well as the coverage amount you decide to purchase based on the value of the possessions you own.
Somebody with valuable jewelry, art, etc. will pay much more for renters insurance than someone with minimal valuable possessions.
The average cost of a renters insurance policy in Philippines is Php6,000 (approximately php 500 a month), but as we said, it can vary.
What happens if I need to file a claim?
If you’ve had an incident requiring a renters insurance claim, don’t panic. Your insurance agent can help you navigate through it easily.
Once you’ve made sure you and your family are safe, you’ll want to gather information about the claim including what happened, when it happened, what was damaged, if anybody else was involved, and photos of the damage.
Once you’ve collected that information, inform your insurance agent who will report it to your insurance company and get an adjuster assigned to review your claim information and make a determination.