Money Matters

We've Got Answers To Your Home Insurance Questions

A lawyer shares what you need to know about home insurance

Photography: Manosa Properties (Main Photo)

Home insurace, like life insurance, is important, as it covers damages which can be brought about by unfortunate incidents like a fire. Atty. Tricia Villar explains the ins and outs of home insurance below:

1. If I insure my house mortgaged to the bank, who will be the beneficiary—me or the bank?

"As property owner, you will benefit from the insurance unless your policy provides that the bank shall be the beneficiary, or you later decide to assign the policy to the bank." 

2. Can I insure the condo unit I'm renting even if I'm not the owner?

"Yes. You need not be the owner to have it insured with you as the beneficiary. It's enough that you could suffer a loss if a fire breaks out." 

3. What's the difference between an open policy and a valued policy? 

"In an open policy, the value of the property insured is not agreed upon. It's left to be determined in the event of loss or destruction of the property. The amount on the policy represents the maximum limit of recovery from your insurance company. [On the other hand], in a valued policy, the value of the property insured is written on the policy. This amount becomes the settlement basis in case of loss or destruction. If your condo insured for P1M is totally destroyed by fire, you can collect the whole P1M from the insurance company even if it's proven that the actual value of the property is more or less than this amount."

4. Can I insure my townhouse worth P3M to two different insurance companies for P3M each? Can I collect the whole amount from both companies in case my townhouse was destroyed?

"You can have more than one insurance policy on your townhouse unless your existing insurance policy specifically prohibits this. However, when it comes to collection, you can only collect from the two insurance companies the amount equivalent to your actual loss—P3M in this case. Depending on your policies, you can collect the full amount from either one of the insurance companies or from both on a pro-rated basis." 

Read the original article ("Insuring Your Home") in the September 2004 issue of Real Living magazine. Download your digital copy on the Real Living App. Log on to for more details

PHOTOS: Manosa Properties | Michael Angelo Chua

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