Home insurance in Nigeria is important to protect families against burglaries, fire, floods, windstorms and other natural disasters that may occur. While they are not at a major threat for hurricanes or tsunamis, like some countries, home insurance in Nigeria has protected many families against other unexpected casualties and disasters. Most people do not properly prioritize the value home insurancecan have until they actually need it. It is not required by law to obtain home insurance in Nigeria, but most mortgage lenders require you to have home insurance before they will lend you money.
How home insurance in Nigeria works
If your home and any property contained inside your home is damaged or completely destroyed as a result of an unfortunate incident, then the insurance company providing your home policy will compensate you for your losses. This means that the insurance company will pay for your home to be repaired, rebuilt and for you to replace any damaged or destroyed belongings that were inside the house.
Perils policies vs. risk policies: what’s the difference?
The two basic types of home insurance in Nigeria are perils policies and an all risks policies. Both need to be reviewed upon accepting a policy, however perils policies are limited to the assets listed and often only covers direct physical losses. All risks policies cover all assets except those specifically excluded by the contract. Although you may pay much higher premiums, it is often wiser to choose an all risks policy for home insurance in Nigeria.
What home insurance in Nigeria does not cover
Like most property insurance policies, home insurance in Nigeria does not cover damages that occur during acts of war, riot or terrorism. Problems that result from poor maintenance or general wear and tear of your home are also not covered under a home insurance policy. Home insurance in Nigeria is still extremely important for families to protect themselves against other losses and damages to their homes and property contained inside their homes.
The scams of home insurance in Nigeria
Recently, insurance fraud has been a problem in Nigeria. The most common problems tend to revolve around fake policies being sold. Home insurance in Nigeria is less likely to be fake compared to auto insurance, but one should still be cautious when purchasing a new policy. This is partly to blame on their lack of requirement to obtain home insurance in Nigeria, when recently it was made law to obtain car insurance. The National Insurance Commission (NAICOM) was established in 1997 to supervise, regulate, administer and control the entire insurance sector in Nigeria. Their mission is to oversee the Nigerian insurance industry, to help avoid insurance scams and maintain high ethical standards, allowing Nigeria to lead in emerging global markets. Although the NAICOM does what they can, it is still important to do plenty of research and know what you are purchasing when signing a new policy for home insurance in Nigeria.