What Affects the Cost of Home Insurance In Kenya?

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 cost of home insurance in kenya


A house is one of the prized possessions; this is why your home should be insured.

When you have ticked all the sections, and you are all set to buy a home, it is imperative to calculate the total cost that will result in your home ownership. Most importantly, this comprises of home buying cost and cost of home insurance.

And if we have to jot down the influential risks that influence domestic package insurance, various elements such as – the area where you want to reside or build a home, your claim history, proximity to natural catastrophes, etc. tend to influence your home insurance kenya.

Also Read – Home Insurance Kenya – Coverage, Tips & FAQ’s

Key Elements of the Standard Homeowners Insurance Policy

Most policies cover personal property loss from theft and structural damage from fire, water discharge, fallen trees, and storm damage. A standard policy will include the following sections:

  • Coverage for the structure of the home,
  • Coverage for the contents of the home,
  • Loss-of-use coverage
  • Personal liability

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Personal Factors That Affect the Cost of Home Insurance

  • Marital Status
  • Dog Ownership and Breed
  • Home-based Business Operations
  • Credit History
  • Claims History

Property Conditions That Determine the Cost of Home Insurance

  • Age and Construction of the Home
  • Size and Amenities of the Home
  • Remodeling/Upgrades
  • Roof Condition
  • Presence of Wood-burning Stoves
  • Presence of Swimming Pool, Hot Tub and/or Trampoline
  • Proximity to a Fire Station
  • General Location
  • Proximity to a Body of Water

Each of these factors can increase or decrease the cost of your insurance, and must be taken into account

Also Read – Domestic Package Insurance In Kenya – Coverage & More

Factors that Affect Home Insurance Rates

Typically, there are multiple factors on which the cost of home insurance in kenya will depend, let us jump right into it –

  •  Place Where You Live

One of the key elements is where you live, or you have plans to live with your family members while buying a home. For instance – let us assume that you live in an area with a high crime rate, it is certain that they will consider this element while calculating your premiums.

In the same manner, some streets and areas are more susceptible to floods, earthquakes, and storms, etc. Other areas might have a high burglary rate. These are some key accidental circumstances that are related to your residence factors and can raise your house premiums considerably.

All in all, the higher the risk of damage or loss to your property, the higher your premiums are likely to be.

  •  Worth of Your Personal Belongings

Value of the contents owned by you and other belongings such as furniture, gadgets, electrical appliances, etc. tend to raise your domestic insurance premiums. To put it simply more the value of the item you want to be covered, the more you will have to shell out.

  •  Size and Structure of the Property

As per the basic rule, the overall rebuild costs of a larger property comprising of the cost of the building materials will be on the higher side as compared to the smaller one.

READ  12 Ways To Save Money On Home Insurance in Kenya

The premiums will be affected in the event where your property is built of wood, or you have a flat roof. And if the building cost is too high, we recommend you to buy a specialist home insurance cover offering complete home protection.

  •  Security

In the event you have opted to construct a new home, make sure you have installed a burglar alarm, smoke detectors, ensure installation of high-quality locks fitted to the doors and windows, fire alarms, and various other security checks.

If you have installed all the above-mentioned security measures, you are most likely to pay lower premiums, but if you haven’t, then be ready to pay high insurance premiums. All in all, it can be said that security is indeed a vital risk that can affect the premiums you pay.

  •  Proximity to Floods

Assuming you have a home close to or in a flood-prone area or any unfriendly weather conditions, there are higher odds you may have to pay higher premiums.

  •  Your Lifestyle

Your age, gender, and marital status, etc are some of the key elements of your profile which tend to influence the home insurance cost in Kenya.

Note – If you are unmarried, live alone, and a chain smoker, all these elements collectively escalate your home insurance premiums as compared to someone who is married and lives with the family.

As a family man, he is believed to act responsibly and will most probably pay the premiums on time. Well, to put in a nutshell, your lifestyle is considered an essential criterion affecting the premiums you will pay for your home insurance.

  •   Claims History

This is also one of the key elements that can either increase or lower the cost of insurance premiums for your domestic package insurance cover. If you have made multiple claims, then you will, unfortunately, have to pay higher than usual premiums.

However, on the positive side if you haven’t made any recent claims, then you are in for a no claims discount. So, it is advisable that you don’t make a claim until or unless you are involved in a serious accident or you are in dire straits where you need to claim for a colossal amount.

Also Read – Tips To Lower Home Insurance Premium Rates in Kenya

How You Reduce Cost Of Home Insurance Policy in Kenya?

Now, when you have made yourself acquainted with the cost of home insurance, you might be thinking of how you can save money on your home insurance policy?

READ  Home Insurance Kenya - Coverage, Tips & FAQ's

While planning to buy a home insurance, you need to take the right steps, thus helping you save a significant amount of money. There are multiple ways to do so, let us spill the beans –

There are many steps you can take to minimize the initial cost of homeowners insurance,

  • Check your credit rating for accuracy.
  • bundling home and auto insurance to save money.
  • Install a monitored home security system
  • Raise your deductible.
  • Evaluate your policy before renewal.
  • Request discounts
  •  Think About Home Insurance in the Initial Stages

It has been noticed that most of the people find the properties, take the decision of buying, look into mortgage charges, and in the last, they think about home insurance.

Ideally, home insurance is a key element and should not be left for the last moment no matter what happens. Leaving your home insurance to the last moment is a bad idea as you will have to deal with higher insurance premiums.

Besides, you will also lose out better opportunities in a hurry and eventually end up paying very high.

  •   Cost Of Your Home Insurance May Differ From The Current Owners Cost

It is not mandatory that the cost of your insurance premiums will be the same as paid by the current homeowner. Today, insurance companies have their own specific criteria using which they calculate the cost of a property for a particular individual.

An individual’s age, credit rating, profession, and the kind of insurance he/she has chosen can’t result in similar values as per their situations. Thus, it will be a wise decision to get an insurance price before you bring negotiating to an end.

  •  Have a Word With Your Insurance Agent

Insurance agents and banks often offer insurance at high rates. They may do this due to the reason if anything wrong happens to you, they may get their money back.

This will eventually cost you more in the end. Therefore, take your time and have a word with your agent and make your best to avail the benefits based on varied parameters.

  •  Look After Your Home

Your home is, undoubtedly, one of the key investments you will make in your life; thus you need to do your best to protect your home.

For this, home inspection plays a key role, and it comes handy in discovering all those hidden things that may harm the structure of your home. A timely repair and care will keep your home safe from multiple damages.

Your home inspection will surely help you know how to improve your home and therefore will bring discounts on your insurance costs.

affordable Home Insurance in kenya

What’s Covered Under Home Insurance?

When you have finally made up your mind to buy home insurance, it pays to understand what you are paying for. Though you cannot expect two policies to be alike; homeowners insurance usually is available with four standard coverage features –

READ  12 Ways To Save Money On Home Insurance in Kenya

Liability Coverage

As per this coverage, you are offered protection against the legal liabilities that you have to go through in case of damage to the property or bodily injury.

Let us understand with the help of an example – if your dog bites your guest and you are sued to cover the medical expenses, then in that scenario, your home insurance will cover the cost of legal exposure up to the policy limits.

Inadvertent damage or destroying other people’s property also comes under this,  for instance – you break the windowpane of your neighbor while playing.

Dwelling Coverage

This coverage protects you financially in the event your home gets damaged by a covered event. This comprises of – floors, walls or anything else that can be categorized as a part of home’s structure for instance – foundation.

Usually, home insurance coverage also tends to cover various other structures as well such as – garage, ensuring protection in a major calamity affecting a major part of your house.

It is advisable that you should go for a policy with limits that aptly covers the replacement cost of the home and the cost of rebuilding the home.

Loss of Use Coverage

Also known as living expenses coverage, this covers you for all the expenses when you are living outside of your home in the event it is rendered unfit to live in owing to a covered risk, up to your policy limits.

However, be informed that not all the expenses are covered: you will only be compensated for the expenses above and beyond your usual expenses. For instance – staying in a hotel while your house gets repaired will be covered.

Personal Property Coverage

The best part of home insurance is that it not just covers your  home but also your personal belongings. Irrespective of the place you keep your belongings, homeowners insurance will cover the damage caused by a covered risk.

Ideally, you should calculate the value of all your belongings as this will help you to purchase apt personal property limits, safeguarding you in case you lose all your possessions.

We at Next Insurance, leading insurance company in Kenya, offer comprehensive home insurance plans designed to cover your home and personal belongings.

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