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Need Home Insurance In Kenya? These Are The Tips For You Should Follow

Home Insurance-

Still confused about making a home insurance purchase? Well, we all know that like any other insurance, home insurance is not among our top choices but for sure, it acts as a backup if things go wrong.

Everyone wants an insurance that will cost less and will provide an adequate protection to one’s home as well as personal belongings within. Today we will discuss in detail that how should one choose home insurance kenya.

Purchasing A Home Insurance Policy as a first time Buyer:

For a first time buyer, it is essential to investigate the options on all corners. This includes all the top home insurance providers in your area and looks into the quotes you are offered.

Secondly, it is advised to speak to your local insurance agents or brokers about the home insurance plans that they offer and try to understand what actually you are promised to be covered with under your policy.

Another key point is the discounts one can avail while purchasing a home insurance. This may include discounts based on factors like age, gender, marital status etc.

What is a home insurance?

A home insurance policy is typically an insurance cover that insures covers the structure of your house and its contents against unpredictable situations. There are two types of policy plans for home insurance:

  1. Basic Fire Policy:

Fire insurance policy covers your house against fire and other allied perils including lightning, storm, and riot. However, some insurers may ask you to pay an extra premium to cover natural disasters like floods, earthquakes or landslides.

  1. Comprehensive Home Insurance cover:

Popularly known as householder’s package policy (HPP) that covers your house against all types of damages which may include loss due to burglary, damage, mechanical or electrical breakdown.

Also ReadDomestic Package Insurance Kenya – What Does It Covers?

How is a Home insurance premium calculated?

Basically, the value of your property includes three components land, property and locality cost. A home insurance covers you only for the building cost. For instance, if the cost of your house is Ksh 1,000,000 out of which property cost is mere 30,000 KSh then your home insurance policy will provide you coverage for only 30,000 KSh.

Apart from this, there are certain factors that affect your premiums:

  1. Location of your house: If you reside in an area prone to natural calamities such as floods, storms, cyclones, hurricanes etc, then chances to damages to your house are high which may result in paying higher premiums.
  1.  Features & Characteristics Of The House – The prevailing conditions of your house can directly influence your insurance premiums. For example –  factors like the age of the house, structure type, material used in building the property, roof, wiring, and garage can affect the premium amount. The older the house, the higher it might cost to insure.
  1. Your Profile — Often, personal factors like your age, gender, living style, credit history can also affect your house insurance premium. For example, a smoker may pay higher insurance premiums than a non-smoker resident would. Also, maintaining a good credit history can help lower your insurance premium.
  1. Installation of Protective Devices – Installation of safety equipment and appliances like smoke detectors, fire alarms, deadbolt locks, burglar alarm systems, fire extinguishers, etc., can surely help bring down the premium amount.
  1. Your Claims History — Your claims history or can lower or increase your premium. If you do have a claim history, you may pay a higher premium, than if you don’t have one.

Also Read4 Reasons Why You Should Buy Domestic Package Insurance in Kenya

How to save money on your Home Insurance Policy?

Taking right steps while planning to buy a home may help you save lots of money on its insurance policy. There are many ways to do so:

  1. Plan for the insurance the moment you decide to buy a home:

In most cases, people find the properties, decide for buying, check out mortgage charges and other costs and at very last moment, they think about home insurance. Never leave your Home Insurance purchase to the last moment as this will result in higher insurance premiums and additionally, you will not get chance to look for better options in a hurry and may end up costing very high.

So the first thing that should come to your mind while purchasing a home is to start looking for the home insurance plans and top insurance providers the moment you decide to buy a home.

  1. Cost of your home insurance May Vary from the Current Owners Cost:

It is not important that cost of your insurance premiums will be similar to the cost which is paid by the current homeowner. This is the biggest mistake made by first time home buyers The amount by them can;’t indicate the amount which you may require to pay.

Insurance policies take into account different parameters in order to evaluate the cost of a specific property for a particular individual.  A person’s age, profession, credit rating,  and the kind of insurance they chose can’t result in similar values as per your situations. Thus, it is better to get an insurance price before you close the deal.

  1. Speak to Your Insurance Agent for Mortgage Insurance:

Your mortgage lender or bank may offer you insurance at high rates. This may be due to reason that if something happens to you, they may get their money back. This may cost you more in the end Hence, you should talk to your insurance agent and can avail benefits based on different parameters.

  1.  Take care of your home

Your home is one of the biggest investments you will make thus it becomes your responsibility to protect your home. For this, you should not skip home inspection anyhow. A home inspection will potentially help you to identify hidden problems that may damage the structure of your home. A timely repair and care help to keep your home safe from damage.s due to any reason.

Your home inspection may help you know how to improve your residence and thus will bring discounts on your insurance costs.

Looking for a home insurance policy? If yes, then you can get best quotes here and make a wise purchase. If you have any questions in your mind about any of your possessions, you can talk to our insurance experts.