- Insurance protects you from costly events such as fire, flood damage, theft or liability claims.
- Read what is covered, what is excluded and how claims are made.
- Use a licensed insurer or broker and keep your policy documents safe.
The Short Answer
Insurance is a way of paying a small known cost to avoid a large unknown loss. A fire, flood, storm, theft or a liability claim could cost far more than the years of premiums. Some types of insurance are compulsory under Nigerian law in certain cases, so ask a licensed professional which apply to you. This guide is general information, not insurance or legal advice.
What Property Insurance Can Cover
| Type | What it may protect |
|---|---|
| Building insurance | The structure, such as fire, lightning, explosion, flood and storm damage, depending on the policy |
| Contents insurance | Furniture, appliances and belongings, against listed risks like theft or fire |
| Landlord insurance | Rental property, loss of rent in some cases and liability |
| Public liability | Claims if someone is injured on your property |
| Construction insurance | Buildings and works while they are being built |
Policies differ a lot, so read the exact wording.
Understand Exclusions and Limits
Every policy lists what it does not cover, such as war, wear and tear, intentional damage or certain natural events. It also sets limits on how much it will pay and may require you to pay an excess on each claim. Make sure the sum insured reflects the real cost of rebuilding or replacing, not just the market price of the property, or you may be paid less than you need.
Choose a Licensed Insurer or Broker
Insurance in Nigeria is regulated by the National Insurance Commission, so check that the insurer or broker is licensed. Compare quotes from more than one provider and ask about claims experience, how long payment usually takes and what documents are needed. Be careful of very cheap offers from people who are not licensed.
Reduce Your Risk Too
Insurance does not replace good maintenance. Fix leaks, check wiring, install smoke alarms and secure doors and windows. Use our house inspection checklist to find problems early. If you rent out the property, include insurance in your costs when you calculate your return, as shown in our guide on evaluating a rental property.
Keep Records for Claims
Photograph and list your property and valuables, and keep receipts, valuations and policy documents in a safe place, ideally with a digital backup. After an incident, take photos, secure the property to prevent more damage, report it to the police if there was a crime and tell your insurer promptly, following the claim steps in the policy.
Review It Every Year
Update your policy when you renovate, buy new equipment or change how the property is used, such as turning a home into a rental or shortlet. See our shortlet guide for that case. Ask your provider whether your cover still fits.
Action Checklist
- Ask a licensed professional which cover is required or advisable
- Compare quotes and read the exclusions and limits
- Set the sum insured to the rebuilding or replacement cost
- Check that the insurer or broker is licensed
- Photograph and list your property and keep receipts
- Know the claim steps and the time limits
- Review your cover every year and after any change
