Types of Household Insurance in Nigeria

A type of property insurance that protects a residential residence is household or home insurance, also referred to as homeowners insurance.

This policy is especially helpful if one just built or purchased a home because it aids in replacing or repairing damages to the property brought on by natural disasters and occasionally man-made ones.

Many of us had dreams of owning a home as children, even before we started earning money. Usually, there are outright signs that we harboured dreams of one day being homeowners even when we were young. As kids, we unconsciously equated homeownership with achievement.

But many of us might be seriously underestimating the responsibility that comes with home ownership. Natural disasters in Nigeria are limited to floods and wind events (which are uncommon), given our country’s environment. Human-caused disasters are very regular, from sudden surges from generators that can rapidly destroy expensive appliances in our homes to flames from electrically faulty networks.

How therefore can we ensure that, should any of these awful circumstances occur, we are able to offer ourselves peace of mind? Owners’ insurance is the solution!

Types of Household Insurance in Nigeria

The many types of home insurance policies and their coverages are listed below (please note that while different firms may have somewhat different names for the policies, the coverages are often the same).

1. Basic Form:

It is basic insurance, as the name implies, and only covers specific risks at the time of purchase. This policy does not cover anything that is not specifically mentioned in it. This kind of insurance does not cover any personal liability in the event that someone is hurt on your property and files a lawsuit.

Theft, fire, damages from riots and civil disturbances, vehicle damage, vandalism, and windstorms are only a few of the situations that are covered by this policy.

2. Broad Form:

This delivers the bare minimum coverage plus a little extra. It often protects your home’s structure as well as your liability and personal property. The sudden and unexpected shredding of pipes, the unintentional release of water, and the unintentional release from a generator are some of the occurrences covered by this policy.

3. Special Form:

The first two are combined with additional information to create this. To put things in perspective, the basic and wide form coverage may exclude certain disasters. However, it will be incorporated into the special form. As a general rule, unless specifically excluded, this coverage covers all structures and disasters.

4. Comprehensive form:

Given that you can alter the policy as you like while still adhering to the organization’s rules, this choice is arguably the most expensive of all the possibilities. Because you can choose the coverage limit, for instance, a pricey piece of jewellery might be covered by this policy.

Conclusion

The market’s most popular insurance alternatives are those that are listed. Before purchasing a household insurance policy, you might want to take into account the items you need in order to locate the greatest coverage. And be aware that this is not the same as a renter’s insurance policy.

Click here for more information on the finest offers on any type of insurance in Nigeria, including household insurance. Agents are on hand to speak with you and guide you through your needs.