Household insurance is the type of insurance we buy to cover our private homes and the contents there are in it. This type of insurance is also know as Home insurance or Homeowners insurance. The policy covers your private building from any potential damage that may come.
Household insurance as the name implies, does not cover commercial or your business building, the policy focused mainly on any loss or damages that may rise against your private household residence.
Types of household insurance in Nigeria
1. Basic household insurance in Nigeria
This is the cheapest form of home insurance policy as it allows you to choose only the things you want to insure. This is the most affordable home 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.
2. Broad household insurance in Nigeria
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 house and your personal belongings. Some of the perils covered under this policy are accidental discharge of pipes and sometimes release from the generators.
3. Special household insurance in Nigeria
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 the special policy coverage.
4. Comprehensive household insurance in Nigeria
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 home insurance?
- Liability for third party losses
- Your building structure
- Your personal belongings
- Any damage caused by natural disaster
Cooling off period
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.
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.
Here in Nigeria, Insurance company have their own different type of household insurance coverage but no matter name they may decide to call it all of it falls under type listed above.
Related Article: Home Insurance In Nigeria-How it works