Finance & Legal House insurance

We recently decided to get a quote for house insurance and this is the one from Prudential Guarantee.
TOTAL SUM INSURED : Php 10,000,000.00 - ON THE BUILDING ONLY
COVERAGE : Fire and Allied Perils(ACTS OF NATURE)
ANNUAL PREMIUM: Php 25,400.00
We have not had this type of insurance for quite a long time as we were in rental places so from memory this seems quite expensive.
Does anyone on the forum that has this type of insurance think this price is the norm for 10M of cover and also can anyone recommend an insurance company for this ?

 

Seems expensive to me also Charly.
Admittedly the rebuilding cost of our house (minus the lot and foundations) would be way lower than yours, we would probably be able to get it done for at most 5 m.
Our cover includes fire, storm, flood, earthquake and costs us around 7,600 Php.
Insurance amount is 4m, arranged through PNB Bank, with "Allied Bankers Insurance Company".
It should get relatively cheaper to insure a higher amount so premium for 10m should be below 2.5x7.6k=below 19k

 

I presume that the high risks of weather related damage, is the reason for these quotes, in comparison to UK cover.
But a little surprised at the price of cover. Very informative.

 

I think the difference in premium for house insurance is indeed because of differences in weather related risks, but also earthquakes and volcanoes.
Lastly I think there is a lot less competition here between insurance companies.
But yeah, in Western Europe you'd pay on average around 450€ per year so around 30,000 Php, but for a rebuild value that's way higher (as in at least three times higher than the OP indicated for his house here).

 

My building and contents insurance is a bit less than £200 with no frills attached, but this does cover me to have paying guests, it's a bit odd that it reduced a few pounds this year, My Post Code in Gods country where there is little organised crime helps with this, my car is around £280 with me having only 2yrs NCD the same car down in England costs a member of the owners club £350 and he has full NCD. There is no doubt in my mind the cost of living up here in Bonnie Scotland is much reduced to that of the south of UK and perhaps the largest saving up here would be the cost to own a house, the value of mine will be around £280K, in many Post Codes down south this would be 400 plus, the equivalent to mine can be had in a small town 7 miles from me for around £230. many English White Settlers sell up down south when they retire to come up here and reap the benefits of the lower cost of living, easily making £100K selling up their house to then buy similar up here.

 

Dave, the amounts insured on a typical house insurance policy are usually not indexed.
So, to know whether your house and furniture/appliances/personal possessions are still adequately covered you would need to check the insured amounts against the current rebuilding value (excluding the land and foundations) respectively the replacement value of those possessions.
Especially if you took out that policy a long time ago, there's a substantial risk that you could be underinsured.

 

Usually I check a comparison site every year at renewal time to get the best price possible so as long as I have a half million cover for a rebuild of ma wee Hoose and that being double the value of it plus £25K for the contents this seems to be adequate to me? With ma Hoose being a Timber framed Kit house rebuild costs are not all that high less than £200K the demolish and scrapping of the old one would be around half that.

Only this morning I've been checking out prices for Car Insurance which is due the middle of next month and also considering to take a look at changing my broadband supplier, Thank You for your advice but understand I am a Scotsman and we take care of the pennies.

 

As do the Dutch Dave. But talking about a Scotsman and pennies makes me remember a very old joke about who invented the copper wire.
Answer: a Dutchman and a Scot fighting over a cent/penny

 

Having just had a price for my Car Insurance renewal it has come in higher that expected/wanted, giving a little thought to this I realised I am as well to up my personal excess from £250 to the 500, now doing such low mileage and very rarely out of the town it is very likely my chances of having an accident are around 66% lower than your average motorist, so I think this risk to have to pay out this £500 is relatively low?

 

Yes Dutchie you are quite correct about that especially with Quakes as the majority of the inferior built CHB houses are not designed to withstand them, look around at just about any new build there and there will be no proper reinforced concrete cast Lintels above the windows and doors, this applies even to houses built for Foreigners who are just too ignorant to know any better.

I remember one such dumb Foreigner spouting off here on DI that he had his CHB house built from start to finish in just 3 weeks, mind you he was one that did like to boast, Btw you cannot lay tiles on a concrete floor until it is cured for 28 days not that it would stop these dumb construction workers over there from doing just that, they would not know any better anyway.

Any concrete Pillar Beam or Lintel can not be touched until a 7 day curing period has passed and 95% full cure is not attained until the 28th day, it is only after that time has passed that a second floor can be done.