What is insurance?
In tackling what insurance is all about, I shall be as brief and straight to the point as possible. The reason is; a concise and straight to the point article ease assimilation.
Insurance has been defined by so many people in many different ways. What we’ve here is not and will never be different from the ones you’ve been seeing. For those of you who read about insurance in legal documents filled with jargon and technical terms will agree with me that insurance sounds complicated.
However, insurance is actually based on a very simple concept. Concepts like an insurer agree to protect you financially against a potential risk. In exchange, you provide the insurer with regular payments to maintain the agreement. If the risk event should occur, the insurer will pay out based on the terms outlined in your agreement.
If you’re new in the system, it’s interesting to know that you can get insurance for various aspects of your life, from your home and personal property to a car, to medical bills. The common principle is that whatever you insure has to be subject to a risk that is entirely possible but isn’t necessarily inevitable.
The Different Types of Home Insurance plans in Nigeria
Like we earlier stated, there are different types of home insurance in Nigeria which as a homeowner you must get yourself acquainted with. Getting home insurance is one of the smart investment a homeowner need do. The advantages can never be overemphasized.
Today, a lot of persons are still asking this question; when should I buy home insurance? Well, to answer this question, let me say that you will almost certainly require home insurance as part of any mortgage agreement. Without it, you could be at risk of having your home repossessed or find yourself personally liable for the significant costs involved in repairing damage to a property. The list below are the different types of home insurance plans in Nigeria.
If you’re among the classes of individuals that who have one or more rental properties then, landlords insurance plans are designed specifically for you. This form of insurance plan covers all the basics of homeowners insurance but also has additional benefits specifically for landlords. Most landlord insurance policies will include coverage for loss of rent in the event of a peril, such as a fire or a storm, and the house is deemed unlivable. It, like most other insurance policies, covers liability for an accident that may occur on the property, as well as legal protection. Landlord insurance also protects landlords from vandalism or damages caused by renters.
This form of insurance plan is considered as the largest and most popular of the home insurance plans. Just like the landlord insurance plan which is designed for those who have one or more rental properties, this form home insurance plan is designed for those who own and occupy a property. It’s basic coverage includes damages or losses to your dwelling, fixtures and fittings from storms, fire, theft, vandalism and other weather-related events. It can also include contents coverage, which means coverage on personal belongings in your homes, such as furniture, televisions, computers and appliances. Most homeowners insurance policies also include liability coverage, which would cover any expenses for an individual who injures themselves on your property and needs medical attention or sues you.
Renters insurance is different that 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 one need this form of insurance is because most landlord insurance policies do not cover a renter’s belongings. So, renters insurance is intended to cover the valuable and expensive items of a renter, should they be damaged or destroyed in the rental property from a named peril, such as a storm, fire or other related activity. Renters insurance will also cover liability insurance, which offers protection against any liabilities from someone who injures themselves while visiting the rental property.
When should I buy home insurance?
As stated earlier in this article, you will almost certainly require home insurance as part of any mortgage agreement. Contents insurance is something you should only consider if you have accumulated significant valuables. Always take this into account before agreeing to pay a high premium for contents cover as you may be able to insure certain items at a much cheaper rate – such as mobile phone insurance via your bank account.
It’s worth considering a short term contents insurance policy if you plan to be away for an extended period of time. An empty house is always going to be a tempting target for thieves and presents a higher risk of accidental damage due to being unsupervised. Remember though, it may however be cheaper to simply pay someone to house sit for you.