The Different Factors That Influence The Price Of Home Insurance In Nigeria

The Different Factors The Price Of Home Insurance In Nigeria

There are different factors that influence home insurance in Nigeria. There are different policies that govern insurance in Nigeria.

What will determine the price of your home insurance in Nigeria are a whole lot of things ranging from age of the structure, location etc.

Related: A simple guide on how to file a home insurance claim in Nigeria

There are some adjustments that you can make and modify so as to have very low rates.

Although very few people care about this home insurance in Nigeria, I advise that you be among those that utilize the benefits of home insurance.

6 Different Factors That Influence Home Insurance In Nigeria

factors that influence home insurance

  1. The age and type of construction

The age of a home greatly influences the price of the home insurance. If a home is old, there will be a higher probability of the components developing faults.

Related: The things that are covered by a homeowner’s insurance policy in Nigeria

All these faults accumulate to increase the price of home insurance in Nigeria.

2. Home location

There is no doubt that the location of a home influences the rate of the home insurance.

Locations with high crime rate, prone to disasters have higher rates for their home insurance.

You must be careful and sensitive when you want to choose the location of your home in the future.

If you are already in such areas, you can discuss with your insurance company to see if there is a way that they can have some discounts for you.

3. Number of claims

factors that influence home insurance

The number of claims that you file in a particular year also has an influence on your insurance rate in Nigeria.

You should try as much as you can to reduce the number of claims that you file.

4. The risk factors

There are certain properties that you will have in your home and they will constitute a risk to anyone present in your home.

These risk factors can be an aggressive dog, sports facility etc. all these risk factors increase your home insurance premium.

5. Your deductible

This is also one of the important factors that influence home insurance premium in Nigeria. A high deductible means that you have to pay more out of your pocket.

You must remember that your deductible must be met before the insurance can take effect. So, however you do it, make sure to have a very low deductible.

6. The coverage amount

The coverage amount that you choose is one of the factors that influence home insurance rate in Nigeria. If the coverage amount is high, so also your insurance rate.

You must reduce the amount of your coverage in order to maintain a low rate of home insurance in Nigeria.

By understanding how these factors affect your insurance rate, you are already halfway from having an insurance rate that you desire.