Does a pawnshop have to insure my pawned item?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
Presidential Decree No. 114 does not spell out a duty for a pawnshop to buy separate insurance on your item, so this platform will not claim there is a fixed statutory insurance mandate. What the law does give you is stronger than a policy: as a pledgee the pawnshop must take care of your item with the diligence of a good father of a family and is liable for its loss or deterioration under Civil Code Article 2099, and it is responsible for the acts of its employees regarding the item under Article 2100. That means if your item is lost or damaged in the branch's custody, you can recover its value whether or not it was insured. Whether a pawnshop such as M Lhuillier or Cebuana Lhuillier carries insurance is its own arrangement — check your pawn ticket for any declared value and stated protections.
Primary sources
Frequently asked
Is there a law forcing pawnshops to insure my item?
PD 114 does not set out an explicit separate-insurance mandate, so we will not assert one. Your protection rests on the pawnshop's Civil Code duty of care (Art. 2099) and its liability for loss or deterioration in its custody, which applies with or without insurance.
If my item is stolen from the pawnshop, am I covered?
Your remedy is against the pawnshop, which is liable for loss under Civil Code Art. 2099 and responsible for its employees' acts under Art. 2100. Whether it recovers from an insurer is its problem, not a precondition to your claim for the item's value.
How do I protect myself up front?
Make sure the item's description and, where offered, a declared value are recorded on your pawn ticket (PD 114 §11), photograph the item before pawning, and keep the ticket. Those records anchor any later claim for loss or damage.
Take action
Related companies
Related issues
Got a similar problem?
File a complaint and we'll pre-fill BSP, SEC, DTI, and small-claims letters for you.
Your rights when you pawn an item at M Lhuillier, Cebuana Lhuillier, Palawan, or any pawnshop — the 90-day redemption period, auction of unredeemed items, lost pawn tickets, and legal charges under PD 114 and BSP supervision.