How Home Insurance Policy Works In Nigeria

Recently, a friend of mine asked me; how does home insurance in Nigeria works? Well, how home insurance in Nigeria works is very simple. Here, we shall be showing you how the whole process works and the basic things you need to know before you can then proceed to get your home insurance policy with ease. Bear in mind that it’s necessary as a homeowner, you get your home or homes insured with registered insurance companies to avoid stories that touch.

Read: The Different Types of Home Insurance Policies in Nigeria

In Nigeria and beyond, owning a home is believed to be one of the basic necessities of life. To some persons, their home is their biggest asset. So, getting insurance for that your expensive home is very important since it’ll cover your home against unforeseen damages. Home insurance in Nigeria is designed to protect your property and personal belongings against damages or theft. It’s a smart investment to protect your home and personal property.

How Home Insurance Policy Works In Nigeria

But the question now is; do you just proceed to an insurance company and demand an insurance policy without knowing how the concept works?

To this, I say no. As a homeowner who wishes to get an insurance policy for your home, you must first and foremost get yourself acquainted with the phenomena underlying the insurance policy you wish to undertake for your home. The reason is that having the right home insurance in Nigeria can help cut some potentially expensive costs.

Who Needs Homeowners Insurance?
Everyone who owns a home needs homeowners insurance in Nigeria. So, if you’re a homeowner in Nigeria, it’s necessary you should consider home insurance. As earlier stated, traditional homeowners should protect their property and personal belongings from unexpected damages. Farm owners may want to protect their house, property, dwellings, other outdoor structures and equipment. Those who are renting a home may want to protect their belongings from damages that occur in the home.  

Coverage of Home Insurance in Nigeria
What is coverage? What and what can home insurance in Nigeria cover? Well, for those of you that wish to know, home insurance in Nigeria can cover a variety of situations. The coverage, on the other hand, refers to what would be replaced or repaired in the event of a specific event. Most home insurance policies include coverage of damage to anything inside your homes, such as furniture, appliance, expensive items or personal items.

Typical coverage also includes coverage for damage or theft outside your home, but still within your property lines. A majority of policies will also include liability coverage, meaning if someone gets injured in your home then your policy will cover any of the person’s medical expenses. Some policies include coverage for expenses related to overnight stays as a result of your home being repaired or rebuilt, such as if you need to vacate your home and stay in a hotel.  

Cost of Home Insurance In Nigeria
There are several factors that determine the cost of home insurance in Nigeria. For those of you that wish to know, the cost of your home insurance in Nigeria will be a result of the property value and belongings you include in your policy. Policies are paid by monthly premiums. Most premiums are inexpensive.

There are different types of claims reimbursements as well, such as actual cash value, replacement cost and guaranteed replacement cost. All will factor into your premium payment. You may also have to pay deductibles depending on your homeowner’s policy and premium payments.  

House Holders Policy
Basically, there are two types of home insurance policies in Nigeria; householders and perils policy. The perils policy only covers expenses due to losses from listed perils in the policy, such as fire, windstorm, flood, burglary and other losses.

On the other hand, homeowners that undertake householders insurance policy has an unfair advantage over those that have peril policy. The reason is this; unlike the peril insurance policy, which covers the things we listed above, the householder’s policy covers a person’s belongings in a rented or private residence.

The policy covers damage to personal belongings as a result of damage to the home that the individual is residing in, such as loss or destruction from a fire or theft. Also, this insurance covers personal belongings such as furniture, appliances, valuables, jewellery, documents and any other expensive personal belongings.
Homeowners Insurance
Who is suppose to have homeowner insurance in Nigeria? Everyone who owns a home is eligible to have homeowners insurance. Homeowners insurance includes coverage for both your property and belongings. The insurance policy, in essence, is the intended home insurance in Nigeria for those who own their homes. Homeowners’ policies typical fall under a named perils policy or all risks policy. Named perils covers the loss from natural disasters or theft.

All risks cover all damages or losses, except those due to war or other acts. Home insurance in Nigeria is intended to protect your home from costly damages or repairs. We cannot predict a fire, flood or theft, so having home insurance in Nigeria is a smart move to protect your financials.

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