Home Insurance Average Cost- As a home owner, you have to place the right for protection higher than the right to other things. You can get insurance to protect your building so that you will have peace of mind knowing fully well that your tomorrow is secured.
What is Home Insurance?
Home Insurance is the type of insurance that protects the policyholder against any potential damage on his home. It is the type of insurance that covers policyholder building against theft, natural disasters, fire or burglary.
Home Insurance Average Cost is a question that comes to mind when we want to get our homes insured. You need to ask questions and dig thorough research before you apply for home insurance to avoid budgeting below the worth of the insurance coverage.
Home insurance takes care of the cost of any damage on your house and provides a wide range of coverage starting from damages done to your building, the properties in it and the damages done to another person’s property as a result of the damage in your house.
What are the important of buying home insurance?
- It protects your company against unforeseen events.
- It provides alternative place to relocate should there be any damage to the building.
- It also covers unexpected expenses.
- Covers you against any legal charges as a result of damages.
- If a staff or a visitor sustained injury in your home, your house insurance can sometimes take care of the bills.
How Can I Buy Home Insurance for my company?
Owners of buildings (Landlords) and Tenants can purchase house insurance coverage. For Landlords, the insurance is designed to cover both the building and the content in it. For tenants, the policy is designed to cover only the content in the building.
Contents includes: Appliances, furniture, office equipment, and other personal valuables.
So even if your company is located in a rented apartment, it’s also advisable to get insurance that will cover your office equipment. Below are the process to take if you want to get house insurance.
- Make a proper research to know the type of insurance company that offers the kind of service that you are looking for.
- Get the documents of the property you want to insure ready.
- Contact the insurance company via their social handle or through any approved means.
- Request for a quote regarding the property you want to insure.
- Compare the quote with your financial plan or budget. If the quote or the cost of the insurance is within the range of your budget, then you can proceed. But if it is more than the amount you budgeted for the said insurance, then you may consider checking another insurance company with a cheaper quote.
- When you have got an insurance quote of your choice, procced to request for the policy papers from the insurance company.
- Read and understand clearly” the does and don’ts” of the policy. Understand clearly the wordings. If you do not understand the policy wordings clearly, you can employ the service of a broker or a lawyer to make it more clear to you.
- After you have cleared all doubt, you can go ahead and sign the papers and the insurance company will take it up from there.
Properties Covered Under Home Insurance
In Nigeria, you can customize your house insurance to suit your needs. Outside customizing your house insurance policy, there are standard house insurance coverage.
A standard house insurance covers your building structure and the contents that are in it not excluding court cases that may rise in the course of the damage. Below are some of the perils covered under house insurance.
1. Internal and external damage to the building
House insurance covers any damages to your properties both in and out of the building, including furniture, and other office appliances.
2. Damages and bodily injury to third party
This covers the policyholder against any court case that may rise as a result of the damages caused by the fire. It also covers the medical expenses of a third-party as a result of injury on your property.
Risks insured under House insurance in Nigeria
- Bodily Injury
- Fire and special perils
- Theft ( burglary, house breaking, or attempted rubbery)
- Personal accident
- Natural disasters (earth quakes, hurricanes, storm etc)
- Third party losses
- Environmental hazards (Wind, Rain, etc)
Home Insurance Average Cost
In as much as home insurance will protect your building, you should also be careful in your own way because there are some exceptions that insurance companies will not take should there be any damage.
Damages done intentionally may not be entertained by some insurance companies. So if you intentionally damage your building just because the building is under insurance coverage, some insurance companies may not entertain such damage.
Destruction caused by poor maintenance is also not allowed by some insurance companies in Nigeria.
So in as much as you have insured you building, maintenance is also important because before insurance company will process your claim the cause of the damage will be investigated in detail to ensure that what caused the damage does not fall under the policy exceptions.
While some insurance companies will not tolerate any carelessness of the policy holder that may lead to destruction, some companies will not mind the caused of the destruction but they will charge you for your carelessness there by reducing your compensation price.
Home Insurance Average Cost is what every home owner should sort for. You will always have peace of mind knowing fully well that your home is protected against any potential damage.
What You Need To Know Before You Buy Home Insurance
Let’s look at some of the major things you need to considers before you buy that insurance that will cover your house against any potential damage that may rise.
1. Financial plan
Your financial plan will play a big role in Home Insurance Average Cost. Before you consider buying home Insurance, you should first of all consider your yearly or monthly budget. How much do you worth? how big is your company? or what is annual income?.
These are major questions you need to ask yourself before you consider buying house Insurance. The level of your financial income would determine the amount that you will put into your insurance coverage.
There are some great budgeting app out there that will help you to make a better financial plan. So as you make your financial plan, you may consider house insurance a priority.
2. Exceptions of the policy
Before you sign up for a house insurance coverage, you should consider the does and don’t attached to that policy. This is because some insurance companies do not entertain any damage that may arise due to some certain conditions.
And even if they will consider, they will rather place extra charges on you which may affect your budget. So consider the does and don’t of any insurance policy. Ask questions, meet experts on the filed to explain better to you before you sign the policy paper.
Your location matters a lot when considering Home Insurance Average Cost.
Your location is a big factor to consider while buying home insurance coverage. If your home is located in an area that are prone to erosion or area that are at high risk to natural disasters, you are likely to pay high in your home insurance coverage.
4. Properties in your home.
It is advisable to take a proper inventory of everything in your home before you sign up for home insurance coverage.
This is because the bigger your home inventory, the higher your Home Insurance Average Cost. So to this effect, you need to only insure the items that you know it would be of benefit to you so that you can cut the cost your insurance coverage.
5. The Excess
Excess refers to the amount of money you pay to the insurance company during claim settlement. So this is one of the factors you need to consider before you buy an insurance coverage for your house.
There is an excess attached to every policy this is because insurance company want you to be careful while using any insured property. For me I always see Excess as a penalty charge from the insurance company.
Taking home insurance is one of the best decisions to make. This is because we live in a world of uncertainties. Emergencies are inevitable, we cannot escape it. So to be on a safer side, register for house insurance today.
Categories Of Home Insurance
Here are some categories of Home Insurance
- House owners Insurance
- Renters Insurance
- Burglary Insurance
1. House Owners Insurance
House owners insurance is the type of insurance we buy to cover our building and the contents there are in it. This type of insurance is also know as Home insurance or Homeowners insurance. The policy covers your building from any potential damage.
Types of house owners insurance
a. Basic house owners insurance
This is the cheapest form of house insurance policy as it allows you to choose only the things you want to insure. This is the most affordable house insurance coverage for most Nigerians.
If you are not financially strong enough to buy a comprehensive insurance coverage for your property, all you need to do is just to select some basic things you know that it would be of more important to you and get them insured.
Some of the perils covered under basic policy are: Theft, fire, damages from riot or civil commotion, accident or vandalism. So if you are under basic house hold coverage, any property not stated in the policy agreement will not be covered in the event of damage.
b. Broad house owners insurance
This policy covers all the basic perils mentioned above plus a few added perils. This is also cheaper and more affordable compare to the comprehensive insurance coverage.
It typically covers the structure of your building and your personal belongings. Some of the perils covered under this policy are accidental discharge of pipes and sometimes release from the generators.
c. Special household insurance
This policy is special because it combines the first two policies plus special add on’ s. There are some exceptions in the basic and broad coverage, those exceptions can be contained in this special policy coverage.
d. Comprehensive household insurance
This is regarded as the most expensive insurance coverage because it covers all the perils in household insurance coverage. comprehensive policy also give you the privilege to modify your policy to suit your needs. You decide what to insure and what not to insure.
What is covered under house owners insurance?
- Liability for third party losses
- Your building structure
- Your personal belongings
- Any damage caused by natural disaster
2. Renters Insurance?
Renters insurance is specifically designed for tenants to protect their properties against potential damage. Just like home insurance is made for home owners, renters insurance is made for tenants.
If you pay for a house rent in Nigeria, it is advisable you sort for Home Insurance Average Cost to protect the contents in your house. If you have a company and the building housing your offices is not your own, then you should consider getting a renters insurance.
Renters insurance is more like a property insurance, because it covers basically your office or household belongings against damage that may be caused by fire or natural disasters.
What does renters insurance covers?
A standard rental insurance policy covers three main areas.
a. Personal property
Perils covered under personal property includes:
- Damage by fire
- Damage by lightening
- Damage from aircraft
- Riots etc
Here in Nigeria, insurance companies have different perils covered under renters insurance. So it is advisable you make a proper research to find out the kind of perils covered by some insurance companies.
After your research, you can then sign up for the insurance company that renders the kind of service you are looking for.
You may not need to boarder yourself looking for Home Insurance Average Cost if you are living in a serviced apartment.
Serviced apartment is the type of apartment that are already furnished before you parked it. Sometimes the only thing you will be permitted to enter in a serviced apartment is just your working materials
If you are in a serviced apartment, and you still want some insurance coverage, good and fine. But you must insure only items that belongs to you.
Insurance company will not insure any item that does not belong to you under renters insurance. The policy may just cover your working tools, your wears and may be a few things that belongs to you.
Renters insurance under property coverage also cover some extra items like wrist watches, expensive jewelries, fine arts and many more.
This policy covers you from any unexpected event that may force you out of you house or your office.
Lets say bad guys a break into your office or house or there’s an electric spark that forced you out of your office and you need a place to stay for a while pending when the issue is resolved.
Renters insurance under short-time can cover your expenses pending when the problem in your office is rectified.
This policy covers you from any court case that may come up against you, may be as a result of going against the property owners rules and regulations or any other related legal charges that may rise against you.
let’s say you organized a home party and while one of your invitees is dancing, she slipped off and fall, injuring herself. Your renters insurance can take care of her medical bills. Generally, renters insurance policy under liability will take care of any loss or damage that may come.
What is not covered under renters insurance?
Just like other policies, there are some exceptions under renters insurance coverage. Always read the “does and don’t” of any policy before you sign the paper.
a. Damage By Natural disaster
Renters insurance does not cover damages done by some natural disasters like flooding or earthquakes. However, special consideration may be given to you if your property is damaged by some other major disasters like wildfire or volcanic eruption.
For example, here in Nigeria, if you live in area where flood is common, insurance company will advice you to buy additional policy that will cover any potential flood damage.
2. Car theft
In Nigeria, if someone stole something from your car, renters insurance may cover you depending on the policy agreement.
But if it is the car that was stolen or damaged, renters insurance does not cover any car theft or damages done to your car. So if you own a car, kindly go and grab yourself an auto insurance to be on a safer side.
3. Your neighbor’s property
Third party’s property is not covered under renters insurance. just like i stated earlier, any property that belongs to your landlord, your roommates or colleagues can not be insured under renters insurance. Instead, advice them to get their own insurance coverage.
4. Damages done by insects or pests
Renters insurance policy is excluded from any damage that may be caused by pests or insects. This is because insurance companies believed that you are supposed to employ a preventive measures to protect yourselves from these creepers.
5. Damage of the building
If there is any damage on the building, like a leaking roof or any damage at all, the landlord should take care of that because it is not covered under renters insurance.
What to do before you buy renters insurance
- Walk round your apartment and take pictures or videos of everything you want to insure.
- Make a list of those items and estimate how much they are cost. Note: don’t lie, be straight forward because insurance companies have a way to reconfirm the facts from the dealers.
- Sum up all the items and
- Sum up the worth or the estimate of all the items. The worth of your personal belongings and office equipment will determine how much renters insurance coverage to buy.
Can I upgrade my renters insurance policy?
Yes, you can upgrade your renters insurance policy anytime. This is because you can buy more new things after you might have registered for a renters insurance.
All you need to do if you want to upgrade your policy is just to contact the insurance company and give them the list of the new items you want to be included in your renters insurance coverage and you will be upgraded. But have it in mind that your premium will also increase as well.
Renters insurance average cost?
In Nigeria, each insurance company have it own price tag, depending on the risks a associated to your choice of policy.
Another thing that determine your renters policy price in Nigeria is the volume or the size of your of your office or personal belongings. The bigger your property the bigger the amount insurance company is likely to charge you.
3. Burglary Insurance
Burglary insurance is an alternative route to securing your home and office from theft. If you are not financially buoyant enough to hire the service of the police to protect you 24/7, then you should consider getting a burglary insurance.
What is burglary insurance?
Burglary insurance is the type insurance policy that covers an individual against looses or damages to the insured property. The insurance company will compensate you for any damage, loss or stolen property as a result of break in, in your home.
There are some bad guys out there whose their main job is to break into people’s home and offices to steal their belonging.
You can not always be at home or spend all day in your office to protect your property from these bad guys right? very good. This is one major reason you should consider getting an insurance policy that would cover any potential break in, in your building.
If you live in an area with a high crime rate, you should consider getting a burglary coverage as well to protect your building from theft.
So burglary insurance coverage is a sure ticket to securing your building from the bad guys without having to go the extra mile of hiring security.
What to do first before you file a burglary claim
When someone break into your office or home, the first thing to do is to file a report to the police, this is because insurance companies would need a police investigation report to confirm actually that the said crime happened.
So the first thing first is to call the police for an investigation. After proper investigation by the police, attach police investigation report with your claim and forward to you insurance company.
Application for Police Investigation on a Stolen Item
Below is a typical format of how to write application for police investigation on a stolen item.
24th October 2021
The Deputy Commissioner of Police,
State CID Abuja,
FCT – ABUJA.
APPLICATION FOR CLAIM OF INSURANCE FOR THE STOLEN ITEMS AT OUR MAINYARD
We write to inform you of a theft that took place in our Katampe yard on the 14th of October, 2021 where 593 cartons of ceiling grid were stolen and all efforts made to recover the items have so far proved abortive.
It is on this note that we are compelled to write this letter to you requesting issuance of police report in order for us to initiate insurance claims for the stolen items.
We thank you for your anticipated attention.
Note, your report should be detailed enough, stating all the things that was stolen. Your report and the police report should also be saying the same thing after investigation.
State the time the incident happen, where you were when the incident happened and all the items that was taken away.
Difference between burglary and robbery policy
People often mistake burglary insurance to robbery. They are not the same, under insurance coverage their policies are not the same.
In burglary insurance policy, you are not supposed to be at home when the incident happen. While in the case of robbery policy, you may or may not be at home. Here in Nigeria, some insurance companies offers a policy that covers both burglary and robbery.
What is covered under burglary insurance
The main objective of burglary insurance is to cover any insured property damaged, loss or stolen due to forceful entry.
They provides no compensation of any kind to the policyholders if the damage done is not caused by violent or break in. So the policy covers your premises against any violent break in.
What is not covered under burglary insurance
They are a lot of exceptions under burglary insurance especially here in Nigeria. But these exceptions vary from one insurance company to the other. Most insurance companies do not cover the following perils under burglary insurance in Nigeria.
- Damage as a result of war
- Damage as a result invasion
- Military break in
- paramilitary’s break in
- Natural disasters
Usually, Insurance companies in Nigeria offers burglary insurance together with other related insurance policies.
Burglary insurance is very important for business owner and individuals who have many properties in danger zones. Some other related policies that may be insured together with burglary insurance are:
- Money in transit policy
- Business premises policy
- Private property policy
- All risk policy
Your home might have burglary insurance which might not cover theft/robbery. So it is advisable that get an insurance policy that would cover both burglary and theft.
Cooling off period Under Home Insurance
Incase you decide to cancel your policy with an insurance company, you are to notify them on time. Here in Nigeria, some insurance company will give you the period of 30 days before they will refund your contribution.
This grace period between when you submit your request to withdraw your policy and the period the insurance company agreed to refund your contributions is called cooling off period.
As long as you have not made any claim, the insurance company will deduct the cost of any medical test and other expenses that they may have spent and then make a refund of your contribution.
Can I Cancel My Home Insurance anytime
Just as I stated earlier, before you cancel you policy agreement, you must give the insurance company a 30 day advance notification.
After the 30 days cooling off period, you and the insurance company may decide to cancel the policy agreement permanently. Sometimes the insurance company may decide to cancel the policy agreement if:
- You misrepresent important facts.
- You provide false information.
- You provide incomplete information.
- You provide wrong information
You may not get any cash back if you fall victims of the above mentioned fraudulent acts.
I hope this article will guide you on home insurance average cost. If you have any question or contribution, kindly drop it in the comment box below.