A Case for Home Insurance in Nigeria - Home & Lifestyle

A Case for Home Insurance in Nigeria

Posted by Don Okereke /  March 11, 2014 / in Home & Lifestyle
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The Insurance sector is no doubt a multi billion dollar industry. Simply put, insurance is a protection, an indemnity against future loss (Wordweb).

The Real Estate industry, properties and home appliances in Nigeria are grossly under-insured. With a population of about 170 million people, there is no gainsaying the fact that there is a big market for insurance in Nigeria.

This essay is necessitated by the prevalence of building collapse, fire outbreaks in Nigeria in which properties running into millions of naira are lost for ever with no prospect of recouping one's investment because the properties and home appliances were not insured in the first place. Of course it is not always comfortable paying for something you probably may never recourse to. Be that is it may, insurance and particularly home insurers may just be an investment for the rainy day. Life is unpredictable; a house, home appliances that took decades to acquire can disappear with the twinkling of an eyelid sequel to a natural disaster (flooding, earthquake, fire outbreak) or even theft. Remember the serious flooding across Nigeria in the last couple of years where properties running into millions of naira were lost. Such scenarios underscores the importance of home insurance.

It appears quite a lot of folks and organizations in this clime seem to be averse to the concept of insurance generally let alone property or home insurance. Many people cite the Byzantine bureaucracy inherent in making claims in the Nigerian insurance sector as one of the reasons they hesitate to embrace insurance. They posit that it is easier for the insurance companies to deduct or collect premiums than to honour claims by clients. A case in point is a certain Pastor that had his property destroyed by the plane that crashed at Iju-Ishaga area of Lagos. He recounted his harrowing experience in the hands of his insurance company, how he was frustrated by preposterous requests for receipts to validate his claims.

Nigerians need to borrow a leaf from Western countries where home insurance is a basic necessity. Prospective clients should shop around for better deals. On their own, the insurance companies in Nigeria have a lot of work to do if they must harness the untapped potentials and opportunities in Nigeria. They should streamline the process of making and paying for claims.

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