A lot of people have been trooping into our mail with questions like “please sir, which is the best home insurance option for protection for my home? and that question is what we wanna give a detailed answer to in this post. Whether you own the building or not this insurance policy is ideal for you. This is because it can be tailored to your status.
If the building belongs to you, the policy will be re-worded to suit you and vice versa. The policy in question is the Comprehensive House-owners/Householders Insurance Policy. If you are the landlord, to you it is a House-owner Comprehensive Insurance Policy. Whereas if you are the tenant, it is a Householder Insurance Policy
The Comprehensive House-owners/Householders Insurance Policy is a package policy that combines four different insurance classes. It combines fire and special perils, burglary/housebreaking, public liability, and personal accident into a single policy. This policy can be applied to both the buildings and the contents.
For instance, the landlord, the owner of the property can insure the building (and his own content within the building). The tenant, on the other hand, can only insure his belonging (i.e. contents only).
See: Compulsory Insurance in Nigeria
Composition of the policy
Generally, Comprehensive House-owners/Householder Insurance Policy is categorized thus:
- Section I – Building (Fire & Special Perils Cover)
- Section II – Contents (Fire & Burglary Cover)
- Section III – Additional expenses of alternative accommodation
- Section IV – Public Liability
- Section V – Personal Accident Cover
It is noteworthy to let you know that for the tenant, Section I above will not be in his policy. The composition of the tenant’s policy will look like this:
- Section I – Contents (Fire & Burglary Cover)
- Section II – Additional expenses of alternative accommodation
- Section III – Public Liability
- Section IV – Personal Accident Cover
Section I – Building (Fire & Special Perils Cover)
This section covers loss or damage to properties by:
- Fire, lighting and explosion
- Aircraft or other aerial devices or falling objects from above
- Bursting or overflowing of water tanks, pipes and other water apparatus but not septic tanks
- Riots, strikes, civil commotions or malicious intents of others
- Hurricane, cyclone, tornado or windstorm, earthquake fire and shock, volcanic eruptions, subsidence or landslide
- Thunderbolt and subterranean (i.e. underground) fire
- Impact by vehicles, horses or cattle (including resident’s animals)
- Debris removal or damage to underground services
Section II – Contents (Fire & Burglary Cover)
Content include household goods and personal effects such as jewelries, articles of gold, silver or precious metals, gem stones, work of art and so on. This section covers loss or damage to properties by all elements from Section 1 above. It also covers loss or damage to properties by Theft (either by strangers and/or legal members’ theft).
Section III – Additional expenses of alternative accommodation
This section is relevant in the event of a fire incident in the main building that caused the building to be inhabitable. The cost of sourcing a substitute accommodation is covered e.g. hotel bill etc. On the other hand, loss of rent incurred on the building while it is uninhabited is also covered.
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Section IV – Public Liability
The Public Liability section of the Home Insurance policy takes care of the liability that might arise when a visitor gets seriously injured while visiting an insured’s home. The liability or legal responsibility to the visitor (who must not be a family member or domestic staff of the insured) is covered for death, bodily injury or damage property.
The cost of the litigation and court ruling are both also covered under the policy. The limit of liability could be up to N1,000,000 and anything can lead to a claim under this policy.
Furthermore, assuming you are a host to a very rich man and while he stayed your domestic staff accidentally caused serious damage to his very expensive clothing and accessories. If he decides to press charges against you for damage to his clothing. Assuming that the court ruled that you should pay the man N700,000.00 the policy will respond.
Section V – Personal Accident
Since Section IV did not cover the insured, hence Section V exist to cater for the insured or his family in case of accident. This section of the policy covers only the policyholder or insured for death or accident up to an agreed sum. The benefit applicable can be made payable to the spouse or children of the insured in case of death.
Why Is The Comprehensive Home Policy The Best Insurance Protection For Your Home?
It can be customized to individual needs/status: The Comprehensive Householder Policy is a very flexible policy. The policy is flexible because it can be tailored to your status or need. If you are a house owner the policy will be modified to your status and likewise if you are a tenant.
It covers a wide range of risks: The Home Insurance policy is an all-encompassing policy. It takes care of varying household risks e.g. if an aircraft, mast or any aerial object fall on the building, the corresponding damage is covered by this section. Also, if someone drives his vehicle or horse against your wall or fence, the policy covers the resultant damage.
It is cheaper than most policies: The Home Insurance policy as stated earlier combines various policies into a single policy. Please note that if the policies were purchased individually the premium would be high.
Hence, since the policy is combined, a single rate is applicable. The single rate will in turn makes the premium remarkably low compared to having them as individual policies. In addition, group discount and other discounts are also applicable to the policy.
Today, there are too many risks and it is rather dangerous to leave your property to chance. You never can tell what is around the corner. That is why it is fashionable to take up the above policy.
It is more affordable than you think as seen above. Why do you spend so much on a property and leave it uninsured? Insure your property today.