Typhoon Season Alert: Remembering Ondoy and The Value of Your Calamity Insurance Coverage

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Typhoon Season Alert: Remembering Ondoy and The Value of Your Calamity Insurance Coverage

Typhoon season is right around the corner. This means that floods will most likely be a part of life in Metro Manila and other places in the Philippines. Ondoy in 2009 reminded us of the horror of what could happen given the changing climate. Due to the Ondoy in 2009, the country even received a grant from the World Bank worth $1.5 million.  That gives you an idea how devastated Metro Manila was after Ondoy.

Given the chronic flooding problems in different areas in Metro Manila, government agencies even used social media to spread awareness regarding these incidences. If you’ll go to the MMDA Twitter page, you’ll find updates regarding the flood. The agency already developed a metrics that is easy to understand. However, despite the easy to understand updates, typhoon season has been associated with damages to property.

A number of areas in Metro Manila experience problems with floodwater.  And since this is a reality that we have to deal with, cars could get damaged, in need of overhaul from the best mechanics in town. It is in this scenario that you will value the right insurance policy on your vehicle.


Act of God Coverage

Act of God coverage, also known as act of nature coverage protects your property from damages caused by nature. With at least 20 storms that would most likely enter the Philippine Area of Responsibility, it is a tricky situation for car owners. Would you rather risk your car be flooded? Billions worth of properties could easily get damaged given the poor urban planning in the metro.


Lesson learned

In fact, after Ondoy, a lot of things changed. Car mechanic shops made a lot of money with the incident. It’s become apparent how cars sold after 2009 had the description “Ondoy free” or “flood free”. Penetration rate before Ondoy hit the country was at 2%. After the 2009 incident, according to insurance companies, they’ve hit the 5% mark. Payments made for the Act of God coverage rose a year after the Ondoy incident. From 2009 to 2010, more people bought the Act of God coverage for their vehicles. According to statistics, it resulted in a jump of more than P1 billion in contrast to the previous year.

Given the benefits of this coverage, what are the things that you need to learn about this coverage? Typically, this will be included in a comprehensive car insurance policy. However, you have to be a smart buyer if you ever want to protect your vehicle.

Car insurance comparison can come in handy in this particular situation. With the help of this kind of tool, it is possible for you to weigh your options. What are the things you need to compare? For instance, what are the things that are not included for the act of God coverage? Keep in mind that most likely, falling debris, or branch may not be included in this particular coverage.

Aside from the inclusions, the price range will also make the most sense. Given the tough competition among non-life insurance companies, the cheapest car insurance premium might just be available if you just look hard enough.