Secure your Condo Unit with the best Security Package in the Market

Condo Security

Do you own a condominium unit? Are you taking care to protect your valuable asset by making sure that it is covered?

Here’s a comprehensive property insurance for your condominium unit’s contents and improvements.  This is designed to provide coverage in an event of fire and lightning, acts of nature (earthquake, typhoon, flood) with riot/strike, and malicious damage.

Packaged Benefits

What makes this different from the rest of the condominium insurance products? Condo Security is a packaged insurance product. It also features extended benefits including personal accident insurance for you, your spouse, and child(ren), coverage for third party liability, burglary/robbery*, firefighting expense, debris removal, rental income, deterioration of stocks, parking slot, accidental breakage of mirrors, and household helpers’ personal accident and property damage – due to insured perils. In short, no more additional premiums for these additional perils.

Do you know the difference between burglary and robbery?

Burglary involves a person illegally entering a building in order to commit a crime while inside; robbery is generally when someone takes something of value directly from another person by the use of force or fear.

Here’s a summary of the coverage:

  • Property insurance
  • Personal accident insurance
  • Comprehensive personal liability
  • Robbery and burglary
  • Fire fighting  expense and debris removal
  • Rental expense and rental income
  • Household helper coverage

Claims Guidelines

When getting an insurance for your condominium property, take pictures or video clips of all your belongings and keep a record of serial numbers and receipts where applicable in a safety deposit box.

This way, when filing a claim, your visual record of the missing or damaged items will make the claims process much easier.

Claims Proceeds

Finally, what many people don’t know is how claims proceeds are paid out.

For example, a policy owner may think that when they insure a property for xxx amount, the Insurance Provider will pay them the specified xxx amount that they get for. Not so.

In the industry, most companies apply the principle of Average Clause when paying out the claims proceeds.

How is this computed?

Average Clause

For example, the actual cash value of the property is P5,000,000. (Actual Cash Value or ACV)

But the owner insured it for P4,000,000 only. (Total Sum Insured or TSI)

And the property damage was valued only at P2,000,000. (Loss)

Using the Average Clause formula:

(TSI) /  (ACV) x Loss = Total Liability

4,000,000 / 5,000,000 x 2,000,000 = P1,600,000

This means that the Insurance Company will pay the owner P1.6M based on the Average Clause formula.

First Loss Basis

With Condo Security, instead of the Average Clause formula, the First Loss Basis is applied. Using the same example, here is how the First Loss Basis is computed:

Total Sum Insured – Loss = Claim

P4,000,000 (TSI) – P2,000,000 (Loss) = P2,000,000 (Claim)

The Insurance Company will pay the owner P2,000,000 based on the First Loss Basis formula.

Affordable Premium

Finally, you might ask, with all the comprehensive coverage benefits contained in the policy,  it must be expensive.

What if I tell you that the premium is like P1,200 per P1,000,000 of sum insured coverage for the whole year?

Remember, aside from the basic condo insurance, meaning, it does not only provide coverage for the property itself, such as improvements, if any and contents; it also features extended benefits like personal accidents, rental income, burglary & robbery, etc.

For example, your condominium is valued at P3,000,000. Then multiply the average premium of P1,200 x 3 (per million) and you get P3,600, plus or minus, inclusive of taxes.

How to get a quote?

Contact this Financial Advisor to get more details about this Condo Security Package.


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