home insurance vs fire and flood

Alexandoy

VIP Contributor
Having the home insured is a requirement of the bank mortgage. That’s how we bought our home so we needed to get a fire insurance. In 2009 when the great flood hit Metro Manila and suburbs many homes were inundated and the insurance did not share in the expense for the damages simply because the insurance was only for fire. Now the home insurance also covers flood and earthquake. When our mortgage was fully paid we stopped getting the fire insurance because it was expensive. Our area is not susceptible to fires anyway because the houses are not near each other and there was no incident of fire here.
 

Mika

VIP Contributor
It is very important to see what the insurance policy you are trying to buy will cover. You should not be afraid to read many pages of terms and conditions in small letters. A lot of people get tricked simply because they did not read the terms. Insurance companies cleverly cheat on their customers.
 

Setho

VIP Contributor
You should always try to get yourself one insurance that you think is very likely to happen. I requested to buy a flood insurance so my home a few years ago and I was so surprised to discover that it was very cheap because there is a very low risk that that particular location can be flooded.
 

btaliat

VIP Contributor
Just like the commentator above me said. There is need to to insure only on some unforseen circumstances that one is sucesptible to. This will make sure that one's not paying premium for the fun of IT. A building near water should go for flood insurance instead of fire insurance.
 

Wisdom01

Valued Contributor
Well those natural disasters are unexpected events and some people don't see it as something that could likely occur that's why they don't focus more on insuring their house again ,but since they have experienced it I am sure they would put more interest in insuring against such ,so it won't happen again
 
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