What is one reason consumers have been reluctant to purchase earthquake insurance?
Other reasons that consumers may be hesitant to purchase earthquake coverage include confusion about what is covered in insurance agreements, misplaced hope for federal assistance, and lack of priority.
How does disaster affect the economy of the Philippines?
The Philippines is known as one of the most hazard prone countries in the world. Disasters have destroyed human, social, and physical capital, and they have derailed social and economic development, as funds are reallocated from ongoing programs to finance relief and reconstruction assistance.
How much is the annual cost of disasters in the Philippines?
Between 2000 and 2016 natural disasters in the Philippines caused over 23,000 deaths and affected roughly 125 million people (Table 1). The associated socioeconomic damage was about $20 billion with average annual damages of $1.2 billion (Figure 3).
Why is the Philippines often rocked by an earthquake?
The Philippines lies along the Pacific Ring of Fire, which causes the country to have frequent seismic and volcanic activity. Many earthquakes of smaller magnitude occur very regularly due to the meeting of major tectonic plates in the region.
Is earthquake insurance a good idea?
When earthquakes occur, they can cause costly and even catastrophic damage to your home. However, earthquake insurance policies are often very expensive, leading many homeowners to risk it and forgo coverage to save money.
How does earthquake Affect economy?
Public Sector Economic Costs A catastrophic earthquake could affect government at all levels, but especially at the local and state levels, by reducing future revenues, increasing current costs resulting from response activities, and increasing future costs resulting from recovery and reconstruction activities.
How did the 1990 Luzon earthquake affect the economy?
The earthquake and eruption-related production losses in the various sectors of the economy, dur- ing the period 1992-1996, are likely to exceed 2 billion US$. The total cost of the reconstruction and rehabilitation can be estimated at over five billion US$. 9.2 The damage caused by the 1990 Luzon earthquake.
Which regions in the Philippines are high risk in terms of earthquake?
The ten provinces most at risk of earthquakes – due to the presence of or their nearness to active faults and trenches – include Surigao del Sur, La Union, Benguet, Pangasinan, Tarlac, Pampanga, Ifugao, Davao Oriental, Nueva Vizcaya and Nueva Ecija (Manila Observatory, 2005).
How can damage to life and property be minimized due to earthquakes?
Remember, Drop, Cover, and Hold On. Get down on the ground under a table or desk. Keep your emergency preparedness kit nearby so you’ll have the supplies you need. Keep clear of windows—glass may shatter from the shaking. Never stand under objects that can fall on top of you like a large bookcase.
What happens if my house is destroyed in an earthquake?
What happens if your house is destroyed? You must continue to pay your mortgage even if your home is destroyed or unlivable due to a disaster. Failure to pay your mortgage could put your loan in default, which could trigger a foreclosure. That will only add to the challenges of getting things back in order.
Who pays for earthquake damage?
Without earthquake insurance coverage in California, you will be responsible for 100 percent of the cost to repair your home, and replace your belongings after a damaging earthquake strikes.
Is earthquake damage covered by homeowners insurance?
A. In California, your residential insurance policy doesn’t cover your home or your belongings against earthquakes. If you don’t have earthquake insurance, you’re not covered for earthquake damage or any additional costs needed to live elsewhere while your home is being repaired or rebuilt.
Is it good to have earthquake insurance?
How much economic damage do earthquakes cause?
The average economic damage was just more than $2.1 billion, while median damages were much less, at $529 million. But earthquake damages fell into three general groupings. In eight cases, damages were less than $50 million.
How did the 1990 Luzon earthquake impact the lives of the Filipino people?
One of its most memorable seismic events was the powerful quake that struck the island of Luzon in 1990, which resulted in a number of collapsed buildings, left an estimated $369-million worth of damages, and a total of 2,412 people dead.
What are economic impacts of earthquakes?
The economic impact of an earthquake or any natural disaster can be classified as: (i) losses to immovable assets, (ii) losses to movable assets (iii) economic losses due to business interruption, (iv) public sector economic costs, and (v) household income losses due to death, injury, and job disruption.
What are the features of real property tax in the Philippines?
Features of Real Property Taxation in the Philippines. Under the Local Government Code of the Philippines of Republic Act. No. 7260 (RA No. 7160), a province or city or municipality within Metropolitan Area may levy a real property tax in the Philippines on such real property as land, building, machinery, and other improvement.
What happens if you overpay real property taxes in the Philippines?
Should you overpay or erroneously or illegally paid real property taxes in the Philippines, a refund or credit for taxes is allowed within two (2) years from date of reduction or adjustment. Said application has to be decided upon by the provincial or city treasurer within sixty (60) days.
What is the real property tax rate in Metro Manila?
The real property tax rate for Metro Manila is 2% of the assessed value of the property, while the provincial rate is 1%. Q: Are there other taxes levied by the government that I should know of?
What is valuation of real property in the Philippines?
Valuation of real property is subject to periodic appraisal by the local government. Under Section 233 of the Local Government Code of 1991, the following rates of basic real property tax are prescribed based on assessed values of real properties in the Philippines: