In recent times, Nigeria has witnessed a lot of tragedies without any form of relief. There are frequent reports of building collapse, houses and markets getting engulfed by fire and so many victims have a hard time getting back on their feet all because they didn’t think insurance was worth the trouble. Owners of collapsed buildings are the worst hit.
Collapsed buildings in several states of the country is a common occurrence, with Lagos state occupying the first position as the state with the highest incidence of collapsed buildings in Nigeria.
Figures obtained from the Building Collapse Prevention Guild, an advocacy group of built environment professionals showed that Nigeria recorded 43 building collapse cases in 2019. The report showed that Lagos had the highest figure with 17 cases, accounting for about 39.53 per cent of the total number of collapsed buildings.
Sadly, more than 95% of these collapsed structures were neither insured nor the properties covered by any form of insurance policy. It is not only a worrying trend, but an area that needs serious attention and solution.
The huge amount of money that goes into acquiring a plot of land, and eventually building a structure runs into millions of Naira –some as high as N60 million, depending on the type of house built. Having spent such huge sums in completing a structure, it is only wise to insure that structure.
Stakeholders in the industry are yet to be able to convince every home owner to key into the need for insuring their houses against one form of natural disaster or the other. Property insurance is a must for every home owner, considering the numerous advantages it has and the fact that it’s unwise to leave your investment unprotected.
What is home insurance?
Home Insurance is the insurance that covers both your house and the property within the house against natural disasters like fire, flood, earthquake, storm, vandalism, explosion, lightening and other unknown natural disasters. It may not be so popular among Nigerians, but the recent increase in the rate of building collapse in most parts of Nigeria and the monumental damage to homes by floods and other natural disasters call for an urgent need to insure your house, new or old.
The cost of the policy is not fixed, as it is based on several factors like how much it will take to rebuild your house in the event that it is damaged or destroyed. It is also based on how much it will take to replace items that are inside your home. The less likelihood of your house getting damaged or destroyed, the less the home insurance premium. It is therefore imperative for the individual to carry out his/her own evaluation to know how much it will take to rebuild their house in the event of damage or destruction.
A home insurance policy is 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. You must confirm from your insurance company before buying one, to avoid erroneous assumptions.
An added advantage of your home insurance policy is the fact that it covers the replacement value. Do check the policy properly before endorsing it to ensure that smaller items like your fence, gate, electric/water supply system, bathroom, kitchen and other interiors are covered in the policy. It must be noted however that the more the coverage, the higher the premium policy, so be prepared for it.
What you need to insure your house
Integrity, trustworthiness and a good track record of fast payment of claims must be put into consideration. It is not enough to be faithfully making monthly contribution to your home insurance premium and then at the end of the day, get abandoned by your insurance company when disaster strikes your home.
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