Introduction: Why Earthquake Insurance Matters in the Pilipinas
The Pilipinas sits on the Pacific Ring of Fire, experiencing an average of 20 earthquakes daily and facing the very real threat of "The Big One"—a magnitude 7.2 earthquake from the West Valley Fault that could devastate Metro Manila and affect 15 million people. Despite this critical risk, fewer than 5% of Filipino homeowners have earthquake insurance, leaving the vast majority financially vulnerable to catastrophic losses.
Standard homeowner's insurance policies in the Pilipinas specifically exclude earthquake damage. This means that when an earthquake destroys or damages your home, business, or property, you will receive no compensation from your basic property insurance. Without earthquake insurance, you would be entirely responsible for repair or reconstruction costs—potentially hundreds of thousands to millions of pesos—while still paying your mortgage on a damaged or destroyed property.
This comprehensive guide provides everything you need to know about earthquake insurance in the Pilipinas as of 2025, including how coverage works, what it costs, which providers offer the best policies, how to choose the right coverage level, and critical steps to take both before and after an earthquake to protect your financial interests.
Critical Facts About Earthquake Insurance
- Standard Saklaw Doesn't Include Earthquakes: Your basic homeowner's/property insurance EXCLUDES earthquake damage
- Separate Policy Required: Earthquake coverage must be purchased as a separate policy or rider
- Saklaw Availability: Limited number of insurance companies offer earthquake coverage in the Pilipinas
- Typical Cost: 0.5% - 2% of property value annually (varies by location and construction)
- Saklaw Limits: Maximum coverage typically ₱50-100 million depending on insurer
- Post-Earthquake Purchase: After a major earthquake, insurers may stop selling new policies for months/years
- Low Penetration: Only ~3-5% of Pilipino properties have earthquake insurance
1. Understanding Earthquake Insurance in the Pilipinas
1.1 What Is Earthquake Insurance?
Earthquake insurance is a specialized form of property insurance that provides financial protection against physical damage and losses caused by earthquakes and related hazards. In the Pilipinas, earthquake insurance is typically offered as:
- Standalone Policy: A separate insurance policy specifically for earthquake coverage
- Rider/Endorsement: An add-on to your existing property insurance policy (most common)
- Comprehensive Package: Some insurers offer comprehensive disaster insurance including earthquakes, typhoons, floods
1.2 What Earthquake Insurance Covers
Covered Perils
| Saklaw Type | What's Covered | Typical Limits | Notes |
|---|---|---|---|
| Structural Damage | Building frame, walls, roof, foundation damage from earthquake shaking | Up to policy limit (typically insured value of property) | Core coverage; most important component |
| Contents/Personal Property | Furniture, appliances, electronics, clothing, personal items damaged in earthquake | 50-70% of structural coverage or separate limit | May require itemized list for high-value items |
| Additional Living Expenses (ALE) | Temporary housing, food, transportation if your home is uninhabitable | 10-20% of structural coverage; time-limited (6-12 months) | Covers costs above normal living expenses |
| Fire Following Earthquake | Fire damage that occurs as direct result of earthquake (broken gas lines, electrical shorts) | Included in earthquake coverage (not standard fire insurance) | Critical coverage; fires after major earthquakes are common |
| Debris Removal | Cost to remove earthquake debris from property | 5-10% of structural coverage or specified amount | Can be substantial; often underestimated |
| Emergency Repairs | Immediate temporary repairs to prevent further damage | Usually covered; may require pre-approval for major expenses | Board up windows, tarp damaged roof, etc. |
| Landslide (earthquake-induced) | Landslide damage directly caused by earthquake shaking | Typically covered if directly triggered by insured earthquake | Causation must be proven; may require geotechnical assessment |
| Ground Subsidence (earthquake-induced) | Ground settling/subsidence caused by earthquake | May be covered; check policy specifics | Often subject to sub-limits or exclusions |
Common Exclusions - What's NOT Covered
| Exclusion | Explanation | Alternative Saklaw |
|---|---|---|
| Tsunami Damage | Damage caused by tsunami waves (even if triggered by earthquake) | Requires separate tsunami or flood insurance |
| Flood (non-tsunami) | Flooding from broken dams, water mains (unless specifically earthquake-caused) | Separate flood insurance |
| Vehicle Damage | Cars, motorcycles damaged in earthquake | Comprehensive auto insurance (with earthquake rider if available) |
| Pre-existing Damage | Damage that existed before earthquake or before policy effective date | None; must be repaired before earthquake |
| Intentional Damage | Damage caused intentionally by policyholder | None |
| War/Nuclear Events | Damage from war, terrorism, nuclear incidents | Generally uninsurable |
| Loss of Use (without physical damage) | Income loss or inability to use property if no physical damage occurred | Business interruption insurance (requires physical damage trigger) |
| Landscaping | Trees, plants, lawns, outdoor landscaping | Rarely covered; some policies offer limited coverage |
| Swimming Pools/Spas | Damage to pools, spas, outdoor structures | May be excluded or subject to separate limits |
| Deductibles | Policyholder responsible for deductible amount (typically 5-20% of claim) | Part of all earthquake policies; cannot be avoided |
Critical Policy Reading Requirement
Earthquake insurance policies can vary significantly between providers in terms of coverage, exclusions, and definitions. You MUST carefully read your policy documents, paying special attention to:
- Definitions: How policy defines "earthquake," "loss," "replacement cost," etc.
- Exclusions: Specific perils or situations not covered
- Sub-limits: Maximum amounts for specific types of damage (e.g., contents, ALE)
- Deductibles: Your out-of-pocket responsibility before insurance pays
- Valuation Method: Replacement cost vs. actual cash value
- Claim Procedures: What you must do to file a valid claim
2. Cost of Earthquake Insurance in the Pilipinas
2.1 Premium Factors and Pricing Structure
Earthquake insurance premiums in the Pilipinas vary based on multiple risk factors. Understanding these factors helps you estimate costs and potentially reduce premiums:
Primary Cost Factors
| Factor | Impact on Premium | Details |
|---|---|---|
| Location/Seismic Zone | HIGH IMPACT (2-5x variation) | Metro Manila and areas near active faults = highest premiums; rural areas far from faults = lowest premiums |
| Building Construction Type | HIGH IMPACT (2-4x variation) | Reinforced concrete = lower premiums; wood frame = moderate; unreinforced masonry = highest premiums |
| Building Age | MODERATE TO HIGH IMPACT | Buildings constructed after 2010 (NSCP 2010 compliance) = lower premiums; pre-1992 = higher premiums |
| Property Value (Sum Insured) | DIRECT LINEAR IMPACT | Higher property value = higher premium (premium is % of insured value) |
| Number of Stories | MODERATE IMPACT | 1-2 stories = lower risk; 3-5 stories = moderate; 6+ stories = higher (requires engineering certification) |
| Soil Type/Foundation | MODERATE IMPACT | Bedrock foundation = lowest; stable soil = moderate; soft soil/reclaimed land = highest |
| Occupancy Type | LOW TO MODERATE IMPACT | Single-family residential = baseline; multi-family = slight increase; commercial = higher |
| Deductible Level | MODERATE IMPACT | Higher deductible = lower premium (typically 5%, 10%, 15%, 20% deductible options) |
| Saklaw Limits | DIRECT LINEAR IMPACT | Higher coverage limits = higher premiums |
| Claims History | LOW TO MODERATE IMPACT | No previous earthquake claims = standard rate; previous claims = potential surcharge or denial |
2.2 Typical Premium Ranges (2025)
Based on market surveys and industry data, here are typical annual premium ranges for earthquake insurance in the Pilipinas:
Residential Property (Metro Manila/High-Risk Areas)
| Property Value | Construction Type | Annual Premium Range | Percentage of Property Value |
|---|---|---|---|
| ₱2,000,000 | Reinforced concrete (post-2010) | ₱10,000 - ₱20,000 | 0.5% - 1.0% |
| ₱2,000,000 | Wood frame or older construction | ₱20,000 - ₱40,000 | 1.0% - 2.0% |
| ₱5,000,000 | Reinforced concrete (post-2010) | ₱25,000 - ₱50,000 | 0.5% - 1.0% |
| ₱5,000,000 | Wood frame or older construction | ₱50,000 - ₱100,000 | 1.0% - 2.0% |
| ₱10,000,000 | Reinforced concrete (post-2010) | ₱50,000 - ₱100,000 | 0.5% - 1.0% |
| ₱10,000,000 | Wood frame or older construction | ₱100,000 - ₱200,000 | 1.0% - 2.0% |
| ₱20,000,000+ | Varies by risk factors | Custom quote required | 0.5% - 2.0%+ |
Commercial Property (Metro Manila/High-Risk Areas)
| Property Value | Building Type | Annual Premium Range | Percentage of Property Value |
|---|---|---|---|
| ₱10,000,000 | Small commercial (1-2 stories, concrete) | ₱75,000 - ₱150,000 | 0.75% - 1.5% |
| ₱50,000,000 | Mid-size commercial (3-5 stories) | ₱500,000 - ₱1,000,000 | 1.0% - 2.0% |
| ₱100,000,000+ | Large commercial/high-rise | Custom quote (₱1M - ₱5M+) | 1.0% - 2.5%+ |
Cost-Benefit Analysis: Is Earthquake Insurance Worth It?
Example Scenario: ₱5,000,000 home in Metro Manila
- Annual Premium: ₱40,000 (0.8% of value)
- 30-Year Total Cost: ₱1,200,000
- Potential Claim (Total Loss): ₱5,000,000
- Net Benefit if Earthquake Occurs: ₱3,800,000
- Break-Even: Even partial damage (>24% loss) makes insurance worthwhile over 30 years
Conclusion: For high-risk areas (Metro Manila, near active faults), earthquake insurance provides excellent value considering the catastrophic financial risk of uninsured earthquake damage.
3. Major Earthquake Insurance Providers in the Pilipinas
3.1 Leading Insurance Companies Offering Earthquake Saklaw
Comparison of Major Providers (2025)
| Insurance Company | Earthquake Saklaw Type | Maximum Saklaw | Key Features | Relative Premium Level |
|---|---|---|---|---|
| BPI-Philam (Pilipino AXA Life) | Rider to property insurance | Up to ₱100M | Extensive network; fast claims; flexible deductibles | Moderate to High |
| Manulife Pilipinas | Standalone or rider | Up to ₱50M | Comprehensive coverage; good customer service | Moderate |
| Malayan Insurance | Rider to property insurance | Up to ₱100M | Specialized in property; competitive rates; established claims process | Moderate |
| Pioneer Insurance | Rider to property insurance | Up to ₱75M | Long operating history; wide agent network | Moderate to High |
| UCPB General Insurance | Standalone or rider | Up to ₱50M | Banking integration; good for homeowners with UCPB mortgages | Moderate |
| BDO Insurance | Rider to property insurance | Up to ₱75M | Convenient for BDO customers; integrated banking/insurance | Moderate to High |
| MAPFRE Insular | Standalone or rider | Up to ₱100M | International backing; comprehensive disaster coverage options | Moderate to High |
| FGU Insurance | Rider to property insurance | Up to ₱50M | Established provider; focus on residential properties | Moderate |
| Pilipino National Bank (PNB) Insurance | Standalone or rider | Up to ₱75M | Good for PNB mortgage holders; bundled options | Moderate |
3.2 How to Choose the Right Insurance Provider
Key Selection Criteria
- Financial Strength and Stability:
- Check Insurance Commission of the Pilipinas (IC) ratings and solvency status
- Review company's financial statements and net worth
- Consider how long company has been operating in Pilipinas
- Assess ability to pay claims after major catastrophic event
- Claims Reputation:
- Research claims settlement ratio (% of claims paid vs. denied)
- Average time to settle earthquake claims
- Customer reviews and complaints on IC website
- Ask for references from policyholders who filed claims
- Saklaw Terms:
- Compare coverage limits, exclusions, and definitions
- Review deductible options and flexibility
- Understand valuation method (replacement cost vs. actual cash value)
- Check for additional benefits (emergency housing assistance, etc.)
- Premium Competitiveness:
- Get quotes from at least 3-5 providers
- Compare premiums for identical coverage levels
- Ask about discounts (bundling, good construction, retrofitting)
- Understand premium adjustment policies (annual increases)
- Customer Service:
- Accessibility of agents and customer support
- Availability of online policy management
- Responsiveness to inquiries
- Language support (English/Tagalog)
4. How to Purchase Earthquake Insurance
4.1 Step-by-Step Purchase Process
Phase 1: Research and Preparation (1-2 weeks)
- Determine Your Property Value:
- Get professional property appraisal or use recent market comparables
- Calculate replacement cost (cost to rebuild, not market value)
- Inventory contents and high-value items
- Estimate additional living expenses needs (3-12 months)
- Gather Property Information:
- Construction type and materials
- Year built and any major renovations
- Square footage and number of stories
- Location details (address, proximity to fault lines)
- Soil type and foundation details (if available)
- Existing property insurance policy details
- Research Insurance Providers:
- Identify 5-7 insurers offering earthquake coverage
- Review each company's financial strength and reputation
- Check Insurance Commission website for complaints/issues
- Read online reviews and ask for recommendations
Phase 2: Quotes and Comparison (1-2 weeks)
- Request Quotes:
- Contact insurance agents/brokers for quotes
- Provide identical information to all providers for fair comparison
- Request quotes with multiple deductible options (5%, 10%, 15%, 20%)
- Ask for detailed policy documents, not just premium quotes
- Compare Quotes:
- Create comparison spreadsheet with all quotes
- Compare premiums, coverage limits, deductibles, exclusions
- Calculate total annual cost (premium + potential deductible)
- Review policy terms and conditions carefully
- Ask Questions:
- Clarify anything unclear in policy documents
- Ask about claims process and documentation kinakailangan
- Inquire about policy renewal terms and premium increases
- Understand cancellation/modification policies
Phase 3: Purchase and Activation (1 week)
- Select Provider and Saklaw Level:
- Choose best combination of price, coverage, and company reputation
- Decide on deductible level (higher deductible = lower premium)
- Finalize coverage limits for dwelling, contents, ALE
- Submit Application:
- Complete application form accurately and honestly
- Provide required documentation (property photos, appraisal, etc.)
- Disclose any previous earthquake damage or claims
- May require property inspection by insurer
- Underwriting and Approval:
- Insurer reviews application and assesses risk
- May request additional information or inspection
- Approval typically takes 3-10 business days
- Review final policy documents before accepting
- Pay Premium and Activate:
- Pay first year's premium (annual, semi-annual, or quarterly)
- Receive policy documents and certificate of insurance
- Note waiting period (typically 30 days before coverage begins)
- Store policy documents in safe, accessible location
4.2 Required Documentation
| Document Type | Purpose | Details |
|---|---|---|
| Property Title/Deed | Proof of ownership | Original or certified copy showing you as registered owner |
| Property Tax Declaration | Property valuation reference | Recent tax declaration from local assessor's office |
| Building Plans (if available) | Construction details verification | Architectural and structural plans; particularly important for newer buildings |
| Property Photos | Visual documentation of property condition | Exterior and interior photos; all sides of building; major features |
| Appraisal Report (optional but recommended) | Professional property valuation | Independent appraisal determining replacement cost |
| Existing Property Insurance Policy | Current coverage information | If adding earthquake as rider to existing policy |
| Structural Engineering Report (for high-value/commercial) | Seismic resistance assessment | May be required for properties >₱20M or commercial buildings |
| Valid Government ID | Identity verification | Passport, driver's license, or other government-issued ID |
| Proof of Address | Residency verification | Utility bill, bank statement, or other official correspondence |
5. Filing an Earthquake Insurance Claim
5.1 Immediate Post-Earthquake Actions
First 24-48 Hours After Earthquake
- Ensure Personal Safety:
- Check yourself and family members for injuries
- Evacuate if building appears unsafe or government orders evacuation
- Be prepared for aftershocks
- Do NOT re-enter severely damaged buildings
- Notify Your Insurance Company IMMEDIATELY:
- Call insurer's emergency claims hotline (available 24/7 for major disasters)
- Provide policy number and basic damage description
- Ask about emergency repair authorization limits
- Get claim number and assigned adjuster contact information
- Document Damage (CRITICAL):
- Take extensive photos and videos of ALL damage
- Photograph from multiple angles; include date/time stamps if possible
- Document structural damage, contents damage, and surrounding area
- Make detailed written notes describing damage
- Do NOT begin repairs yet (except emergency temporary repairs)
- Prevent Further Damage:
- Make temporary emergency repairs to prevent additional damage (board windows, tarp roof)
- Shut off utilities if damaged (gas, electricity, water)
- Remove valuables if safe to do so
- Keep all receipts for emergency repairs (usually reimbursable)
5.2 The Claims Process
Standard Earthquake Claim Timeline and Procedures
| Phase | Timeline | Key Activities | Your Responsibilities |
|---|---|---|---|
| 1. Initial Notification | Day 0-2 | Contact insurer; claim number assigned; adjuster assigned | Call insurer immediately; provide basic information; document damage |
| 2. Emergency Measures | Day 1-7 | Authorization for emergency repairs; temporary housing if needed | Make temporary repairs; keep receipts; document everything |
| 3. Adjuster Inspection | Day 3-30 | Claims adjuster inspects property; assesses damage; estimates losses | Be present for inspection; provide documentation; answer questions |
| 4. Documentation Submission | Day 7-30 | Submit formal claim with all supporting documents | Provide photos, receipts, contractor estimates, inventory lists, etc. |
| 5. Claim Evaluation | Day 10-60 | Insurer reviews claim; may request additional information; calculates payout | Respond promptly to information requests; cooperate fully |
| 6. Settlement Offer | Day 30-90 | Insurer makes settlement offer based on policy terms and damage assessment | Review offer carefully; negotiate if necessary; accept or dispute |
| 7. Payment | Day 45-120 | If offer accepted, insurer issues payment (minus deductible) | Cash check; begin repairs with licensed contractors |
| 8. Repairs & Final Settlement | Varies (months) | Complete repairs; final inspection; any additional payments if needed | Complete repairs; provide documentation; final inspection |
Critical Claim Filing Tips
- Document EVERYTHING: Cannot over-emphasize importance of thorough documentation
- Do NOT throw away damaged items until adjuster has inspected them
- Keep detailed expense records: All earthquake-related expenses including emergency repairs, temporary housing, food, transportation
- Get multiple repair estimates: 2-3 estimates from licensed contractors helps justify claim amount
- Read your policy: Understand coverage limits, deductibles, and claim procedures
- Respond quickly: Delays in responding to insurer requests can delay entire claim
- Be honest: Inflating claims or providing false information can result in denial and policy cancellation
- Get it in writing: All communications with insurer should be documented in writing (email or letter)
5.3 Common Claim Disputes and How to Resolve Them
Typical Dispute Issues
| Dispute Type | Common Cause | Resolution Strategy |
|---|---|---|
| Saklaw Denial | Insurer claims damage not covered by policy | Review policy language; provide expert opinions (structural engineer, geologist); cite specific policy provisions; escalate to supervisor; file complaint with Insurance Commission if necessary |
| Insufficient Settlement Amount | Insurer's damage estimate lower than actual repair costs | Get independent contractor estimates; hire public adjuster; provide detailed repair itemization; request re-inspection; negotiate based on evidence |
| Causation Dispute | Disagreement on whether earthquake caused specific damage | Obtain expert reports (structural engineer, geotechnical engineer); provide seismic data correlating damage with earthquake timing; document pre-earthquake condition |
| Valuation Method Disagreement | Difference between replacement cost and actual cash value | Review policy valuation clause; provide current material/labor costs; hire professional appraiser if needed |
| Delayed Payment | Insurer taking excessive time to settle claim | Document timeline; send formal demand letter; cite IC regulations on claim settlement timemga frames; file complaint with Insurance Commission |
| Contents Inventory Disputes | Disagreement on value of damaged contents | Provide receipts, photos, bank/credit card statements proving purchases; get expert appraisals for high-value items; provide replacement cost estimates |
Escalation Process if Claim is Denied or Disputed
- Internal Appeal: Request supervisor/manager review; submit additional documentation
- Mediation: Request mediation through Insurance Commission of the Pilipinas
- Public Adjuster: Hire licensed public adjuster to represent you (they take % of settlement)
- Legal Counsel: Consult attorney specializing in insurance claims
- Insurance Commission Complaint: File formal complaint with IC; IC investigates and mediates
- Litigation: Last resort; file lawsuit against insurer for bad faith or breach of contract
6. Reducing Earthquake Insurance Costs
6.1 Premium Reduction Strategies
Proven Methods to Lower Your Earthquake Insurance Premium
| Strategy | Potential Savings | How It Works | Implementation |
|---|---|---|---|
| Increase Deductible | 10-30% premium reduction | Higher out-of-pocket responsibility = lower premium | Choose 15-20% deductible instead of 5-10% |
| Seismic Retrofitting | 15-25% premium reduction | Structural improvements reduce damage risk | Foundation bolting, cripple wall bracing, soft-story reinforcement; get engineer certification |
| Bundle Policies | 5-15% multi-policy discount | Insurers offer discounts for multiple policies | Purchase earthquake, fire, auto, life insurance from same provider |
| Building Code Compliance | 10-20% premium reduction | Modern seismic codes = lower risk | Provide certification of NSCP 2015/2019 compliance; particularly for post-2010 construction |
| Security/Safety Features | 5-10% discount | Fire alarms, sprinklers, security systems reduce overall risk | Install and maintain certified fire/security systems |
| Group/Association Discounts | 5-10% discount | Professional associations, homeowner groups negotiate group rates | Join homeowner's association, professional organization with insurance partnerships |
| Loyalty Discounts | 5-10% after 3-5 years | Long-term policyholders receive discounts | Maintain continuous coverage with same insurer |
| Claims-Free Discount | 5-15% after 3-5 claim-free years | No claims history = lower risk profile | Maintain property well; avoid filing small claims |
| Annual vs. Monthly Payment | 5-8% savings | Insurers offer discount for upfront annual payment | Pay annual premium upfront rather than monthly installments |
| Shop and Compare | 20-40% potential savings | Premiums vary significantly between providers | Get quotes from 5+ insurers every 2-3 years |
7. Special Considerations
7.1 Condominiums and Townhouses
Earthquake insurance for condominiums and townhouses involves unique considerations due to shared ownership and master insurance policies:
Master Policy vs. Individual Unit Saklaw
- Condominium Corporation Master Policy:
- Covers common areas, building structure, shared amenities
- Paid through association dues; mandatory for all unit owners
- May or may not include earthquake coverage—check with condo association
- Saklaw limits may be insufficient for total rebuild
- Individual Unit Owner Policy (HO-6):
- Covers interior of your unit, personal property, improvements/upgrades
- Fills gaps not covered by master policy
- Should include "loss assessment" coverage (your share of deductible on master policy)
- Earthquake coverage usually requires separate rider
Critical Action for Condo Owners
You MUST verify whether your condominium's master policy includes earthquake coverage. Many condo associations do NOT purchase earthquake insurance due to cost, leaving all unit owners financially exposed. If master policy excludes earthquakes, you should:
- Advocate for condo association to purchase earthquake coverage
- Purchase individual unit earthquake insurance (covers your interior and belongings)
- Understand that even with unit coverage, major structural damage may make building uninhabitable
- Consider "loss assessment" coverage to pay your share of master policy deductible
7.2 Commercial Earthquake Insurance
Businesses face unique earthquake risks requiring specialized coverage:
Commercial Earthquake Saklaw Components
- Property Damage: Buildings, equipment, inventory, improvements
- Business Interruption: Lost income during shutdown; ongoing expenses (payroll, rent, loan payments)
- Extra Expense: Costs to temporarily relocate and continue operations
- Contingent Business Interruption: Losses due to suppliers/customers being affected by earthquake
- Accounts Receivable: Saklaw if customer payment records destroyed
- Valuable Papers/Electronic Data: Cost to recreate destroyed records/data
8. Frequently Asked Questions
Q1: Can I buy earthquake insurance after an earthquake occurs?
A: After a significant earthquake, most insurance companies will impose a moratorium on new earthquake insurance policies, typically lasting 30-90 days or longer. Some insurers may stop selling earthquake coverage in affected areas indefinitely. You cannot buy coverage to claim damage from an earthquake that already occurred. This is why purchasing earthquake insurance BEFORE an earthquake is critical.
Q2: Does earthquake insurance cover tsunami damage?
A: Generally NO. Tsunami damage is typically excluded from earthquake insurance policies and requires separate tsunami or flood insurance. Check your policy's specific exclusions. Even if an earthquake triggers the tsunami, the resulting water damage is usually not covered under earthquake insurance.
Q3: What happens if my mortgage company requires earthquake insurance?
A: Some lenders in high-risk areas (like Metro Manila near the West Valley Fault) may require earthquake insurance as a condition of the mortgage. If you fail to maintain required insurance, the lender may purchase force-placed insurance and charge you (usually at much higher rates). It's always better to purchase your own policy with competitive rates.
Q4: How much earthquake insurance coverage do I need?
A: Saklaw should equal the full replacement cost of your property (cost to rebuild from scratch), not market value. Additionally, consider:
- Contents: 50-70% of dwelling coverage or higher if you have valuable items
- Additional Living Expenses: 12-24 months of alternative housing costs
- Debris removal: 5-10% of dwelling coverage
Q5: Will my premium increase after I file a claim?
A: Possibly, but earthquake insurance claims are treated differently than regular property claims. After a major catastrophic earthquake affecting many policyholders, insurers typically cannot single out individual claimants for rate increases. However, rates may increase across the board for all policyholders in the affected region after a major event.
Q6: Can I cancel my earthquake insurance at any time?
A: Most policies can be cancelled, but you may not receive a full refund of the premium and may be subject to short-rate cancellation penalties. Additionally, after canceling, you may face a waiting period if you want to reinstate coverage later. Maintaining continuous coverage is generally recommended.
9. Key Takeaways and Action Steps
Essential Action Checklist
- ✅ Verify your current coverage: Check if your property insurance includes earthquake coverage (it almost certainly doesn't)
- ✅ Assess your risk: Determine your property's earthquake vulnerability based on location, construction, age
- ✅ Calculate replacement cost: Determine full replacement value of your property and contents
- ✅ Get multiple quotes: Contact 5+ insurance providers for earthquake coverage quotes
- ✅ Compare coverage terms: Don't just look at price; review coverage limits, exclusions, deductibles
- ✅ Purchase adequate coverage: Buy earthquake insurance BEFORE an earthquake occurs
- ✅ Document your property: Create comprehensive photo/video inventory of property and belongings
- ✅ Review annually: Review coverage limits and policy terms every year; update as needed
- ✅ Understand claims process: Know what to do immediately after an earthquake to protect your claim
- ✅ Combine with preparedness: Insurance is financial protection; also implement physical preparedness measures
Remember:
- Standard property insurance does NOT cover earthquakes—you need separate earthquake coverage
- The Pilipinas faces very high earthquake risk, particularly Metro Manila and areas near active faults
- Earthquake insurance provides critical financial protection that can save you from financial ruin
- Premiums (0.5-2% of property value annually) are small compared to potential catastrophic losses
- You cannot buy earthquake insurance after an earthquake to cover that earthquake's damage
- The time to purchase is NOW—before "The Big One" strikes
10. Additional Resources
Government and Regulatory Bodies
- Insurance Commission of the Pilipinas: www.insurance.gov.ph - Insurance regulation, company ratings, complaint filing
- PHIVOLCS: www.phivolcs.dost.gov.ph - Earthquake information, fault maps, preparedness resources
Industry Associations
- Insurance Commission of the Pilipinas (IC): Regulatory oversight and consumer protection
- Pilipino Insurers and Reinsurers Association (PIRA): Industry standards and best practices
For More Information
- Consult licensed insurance brokers or agents
- Read your policy documents thoroughly
- Ask questions before purchasing
- Keep policy documents in safe, accessible location
- Review and update coverage annually
Disclaimer: This guide provides general information about earthquake insurance in the Pilipinas as of January 2025. Insurance products, terms, pricing, and availability vary by provider and can change over time. This information should not be construed as professional insurance advice. For specific coverage recommendations and policy details, consult licensed insurance professionals and carefully review policy documents before purchasing. Premium estimates and coverage descriptions are illustrative; actual policies may differ.