In today’s post, we will be looking at home insurance in Nigeria and why it is important to insure your home and properties.
Nobody prays for something negative or disaster but then, these are inevitable occurrences that happen when we list expect them. This is why experts always warn that people prepare for such periods.
Take a minute to consider — if something really bad happens to your home or any other property, how would you survive the incident? If you have a positive answer to this, then you are among those who are prepared for negative future occurrences. But if you are confused about what to do, then you need to read on to find out why Home insurance in Nigeria is really important.
The average Nigerian may not wish for a disaster of any sort to happen; however, the popular statement that says “prevention is better than cure” — leaves us to the fact that we can’t stop the occurrence of natural disasters — but we can take preventive measures to remedy the situations when it occurs.
There are a lot of tragedies that occur in society without any form of relief and most victims of this incident find it hard to get up on their feet because they — probably felt insurance is a complete waste of time and not worth the trouble.
It’s sad to note that most structures and properties in Nigeria are not covered by an insurance policy and this is one area that needs to be resolved.
There are a lot of Nigerians who haven’t fully grasped the importance of having an insurance plan of any kind. Well if you are one of them, I suggest you start changing that mindset from today.
There are so many financial risks we could easily avoid by just taking up an insurance policy, this is authentic and we are quite aware that several Insurance companies have already been set up in order to embark on the responsibility of protecting you from incurring financial risk as a result of damages that may occur to a person or their property.
In this article we will be discussing home insurance in Nigeria, insurance policy, a list of insurance policies, what is a home insurance policy, different types of home insurance, and the benefits of home insurance.
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What Is An Insurance Policy
An insurance policy is a written contract between two parties – these parties include an insurance company or better know as the insurer and an individual or entity also called the insured. In any case, the insurer provides protection for the insured against financial losses that may occur – and in return, the insured individual is required to pay an agreed premium.
Insurance is a very concrete financial risk management tool that protects what is important to us.
For every risk, there is an insurance policy made available for it.
Types of insurance policies
There are different types of insurance policies and they include
- Life insurance
- Homeowners insurance (Our focus).
- Health insurance
- Automobile insurance
What Is Home Insurance
Home insurance is a form of property insurance. This insurance policy covers losses and damages to an individual’s residence including the home contents and properties against natural disasters like fire, flood, lightning e.t.c.
In order to secure the longevity of your home, having home insurance is a great way to start.
A home insurance policy operates on a termed policy, meaning that it runs for a fixed set period of say 10 years or 20 years depending on other inclusive policies attached. This insurance policy may not be so popular among Nigerians.
There are different types of home insurance in Nigeria. Investing in your home by taking up an insurance policy for your home is a very smart move because without it you risk having to incur extra expenses in repairing the damage that may occur or even worst losing your home.
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The Different Types of Home Insurance in Nigeria
In Nigeria, there are different types of home insurance every homeowner must acquaint themselves with.
The list below is the different types of home insurance in Nigeria.
- Landlords Insurance
This insurance plan is for individuals who have more than one rental property.
This insurance plan covers all the basics of home insurance which includes coverage for loss of rent in the event of a disaster such as a storm or fire rendering the house inhabitable, and it also provides additional benefits to the landlord by providing legal protection against vandalism or any damages renters might cause.
- Homeowners Insurance
A homeowner’s insurance plan is seen as the largest and most popular of the home insurance plans. This form of home insurance in Nigeria is specifically for those who own and occupy a property. It covers damages or losses to your dwelling, your home contents, and personal belongings from storms, fire, theft, vandalism, and other weather-related events.
In most cases, homeowners insurance policies also include liability coverage. This helps to cover any expenses for an individual who may injure themselves on your property and needs medical attention or even takes legal action against you.
- Renters Insurance
This is different from a landlord insurance plan. This form of home insurance plan is designed to cover those who rent their home, apartment, or flat. The major reason why you may need this form of insurance is due to the fact that most landlord insurance policies do not cover a renter’s belongings.
So, renters insurance is expected to cover the personal and expensive items of a renter, in the event, they get damaged or destroyed in the rental property from incidents such as a storm, fire, or other related activity.
Reasons Why You Should Have A Home Insurance policy
- It puts your mind at ease
Having your home insured gives you the luxury of having peace of mind. Irrespective of what property you own, once you have selected your plan and paid your premium, you can rest assured that protecting your property is no longer your responsibility.
- It protects you from loss
Home insurance will pay to repair or replace your house if it is destroyed or damaged by fire, tornado, hurricane, or any type of natural disaster. So you are sure that in the event of any home damage you won’t be at loss.
- It ensures you are well protected against burglary and theft
One of the major advantages you get from home insurance in Nigeria is that it helps you secure your valuables in the event of theft. If at anytime a theft outbreak occurs in your home, this insurance policy will cover any of the expensive property they likely made away with.
- It Provides Financial Protection
This insurance saves you from any unnecessary stress of incurring additional expenses in the event of a natural disaster. Your saved money as the insurer helps take care of the bill thereby relieving you of the financial burden and saving you from unnecessary spending.
- It is not quite expensive
There is a misleading concept in the minds of most people in Nigeria that taking up an insurance plan involves a lot of money. This isn’t necessarily so, the reason is that there are different plans and terms of the agreement involved in each plan. This simply means you could find an insurance plan that best suits your budget and the terms of premium payment would be what you can easily afford.
- A home insurance policy will protect you from any legal liability / third party liability which may arise, in case any third person suffers an injury while on your property.
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One thing we should know is that having home insurance in Nigeria isn’t a luxury but a necessary investment. As Nigerians begin to have this mindset, it’s going to make things a whole lot easier.
You have to note that you can’t control everything that happens to you but you can respond proactively to them by ensuring you insure your home in Nigeria. Knowing that your home is secured will give you peace of mind
So if you are a homeowner and haven’t insured your home, It’s high time to consider doing so as the benefits involved are great.