Getting Best Home Insurance Cover in Kenya – A Pocket Guide
Table Of Content:
🏡 Calculating Home Insurance Rate – Tips to Consider
🏡 Tips to get better domestic package cover rates
🏡 Tenant Insurance & Landlord Home Insurance Kenya.
🏡 How to Find the Best Home Insurance Cover in Kenya?
🏡 What Makes One Home Insurance Company Better Than Another?
🏡 What does a Home Insurance Policy Cover?
🏡 Items Limited Under Home Insurance Policy in Kenya
🏡 How to Buy Home Insurance in Kenya Like A Pro?
Having your own home is undoubtedly the biggest and the most significant investment anyone can make in their lives. After all, it is a place where you and your family members have a gala time and weave memories that last for eternity.
While we use our life’s savings into buying and constructing our dream home, but we hardly ever think that our dream home also needs protection in the form of 🏡 home insurance in Kenya too. But, when you make, the much needed, decision of buying a home insurance policy, also termed as homeowners insurance, you offer protection to your home from a plethora of perils.
Are you facing a bewildering situation of how to choose the best cover for 🏡 domestic package insurance kenya? You can’t let your life long investment just wither away, since it takes a lot of hard work and patience to become a home owner in Kenya.
You can consider a variety of 🏡 home insurance policy quotes and even speak to our financial adviser to ensure you choose the best option for your needs. Read our pocket guide to know more about how you get the best home insurance in Kenya, tips and lot more.
Related Read – Domestic Package Insurance In Kenya – Coverage & More
🏡 Calculating Home Insurance Rate – Tips to Consider
When it comes to calculating the 🏡 domestic cover premium rates, take into consideration the following things –
1. Location of your home
Let us assume you reside in an area which is prone to natural calamities such as earthquakes, floods, cyclones etc. then the odds to damages to your house are more which, most of the times, result in higher premiums.
2. Characteristics of the House
The prevailing conditions of your house also tend to influence your house insurance premiums. For instance – the age, structure, type, and the material used for building the house, wiring, roof, also does influence the premium amount. If your home is old, you may have to spend extra to insure it.
3. Replacement value of the residence
This mainly comprises of the policies to replace your home in the event it is damaged. Note though, the value of the land is not included.
4. Personal Liability
When there is an addition of family, pets, and various other covers abreast of the property covers, it tends to increase the premium rates.
5. Value of Personal Belongings
This mainly comprises of furniture, electronics, clothing, etc. In the event where the value of these properties is on the higher side, the premium rates will also be higher.
🏡 Tips to get better domestic package cover rates
You want to save a few shillings on your investment, this is how you can do –
6. Compare Various Quotes
It is advisable to get in touch with at least 5-6 reputed insurance companies and make yourself acquainted with the quotes offered by them. Sit back, take your time, and compare the quotes (provided by these companies) to finalize the best one for you.
7. Insure Adequately
This is where two terms will play a significant role – Over insurance and Underinsurance. Let us first get familiar with these terms –
- Over Insurance – This is a situation where you insure your home for more than the cost required to rebuild it. You will only be benefitted, from over insurance, in the form of increased payout.
- Underinsurance – This situation is contrary to over insurance. This particular situation arises when building sums of a home insurance policy are below the rebuild cost of the insured property.
- Live in low-risk regions –
The location of your house is of great significance to your insurance company. Why? Home location is symbolic of the perils you are likely to come across /pose as a policyholder.
Under this, various elements are taken into consideration by your insurance company such as – the rate of crime in the neighborhood, the distance of your home from the fire hydrants or police station, and potential risks from the weather conditions including – flood, earthquake, landslides, etc.
8. Go For a Reputable Home Insurance Company in Kenya
It pays to understand the fact that no matter what happens, go for a reputed home insurance company kenya. Here are the things you need to consider –
- Accessibility – First and foremost, you have to consider the location of the company’s local office. Make yourself acquainted with the mode of communication, and does the company has competent customer service representative.
- Financial Stability – You have to be extra wary that you only insure with a company with proven financial ratings.
- Claim Services – Contemplate and confirm that the company is customer-oriented. That is how promptly do they reply to your claims, and do they ask for additional documents.
9. Amount of Coverage Offered –
Experts are of the view that it is much easier to insure most of your life aspects with one company. Therefore, ideally, choose a company offering car insurance, or life insurance on top of home insurance.
- Insurer’s Standing – Be acquainted with the general ratings of the company, also verify customer reviews online, and does the company charge reasonable premiums, etc.
10. Make the Most of the Discounts
Nowadays, insurance companies in Kenya tend to offer homeowners insurance discounts for behavior that significantly reduces the perils, so it is advisable you make the most of them. From smoke detectors installation, a storm shutter, water safety systems, to burglar alarms, you may be able to save a significant amount on your home insurance premium.
Some companies even offer discounts for new home buyers. Besides, if you successfully maintain your credit score, you will considerably improve your chances of acquiring a better rate.
11. Be Familiar with the Costs
Bear in mind that you don’t want your house insured for its market value, but its replacement cost. While the replacement costs identify with the expenses you need to repair or rebuild your home, the market value is the actual amount you will pay for the house. Besides, make sure you consider the costs needed to transport the building materials to the site along with the elements like inflation.
12. Compare the Deductibles
As and when you start building your policy, it is the right time to set your home insurance deductibles. The deductible is the amount you would pay on a claim. Let us understand this with the help of an example – if you go for a higher deductible, it will help you bring down your monthly premium. However, on the negative side, this means that you will be spending more before your insurance company finally pays out.
On the contrary, a lower deductible usually means you will have to pay less post claim, however, your homeowner rates will be on the higher side each month. There are both advantages and disadvantages for both the scenarios, and eventually, it all depends on personal circumstances and financial security.
13. Answer the Questions Fairly
To have the best home insurance coverage, you need to be honest. When your insurance company has genuine information, they are in a better position to offer you reliable protection. Remember, providing incorrect information may not only lead to inaccurate quote but in the worst case scenario, your insurance company may also cancel your insurance policy.
14. Better Understanding of Your Coverage
Homeowners not having holistic knowledge about their coverage is a more common issue than one might think. And to a certain extent, it is understandable. A common home insurance policy is an obscured piece of literature, exhibiting the differences of what is covered and what not. However, your policy is important. So, if you have any doubt or you are not clear about anything, you can approach your insurance company and ask them to simplify the things for you.
🏡 Tenant Insurance & Landlord Home Insurance Kenya.
According to Insurance Information Institute poll, while 95% of homeowners had home coverage, only 37% of renters had tenant insurance. Several reasons were mentioned, but typically the perceived cost of the insurance and underestimating the value of their property were contributing reasons.
Another reason is that many tenants assume that as long as their landlord has coverage for the unit they’re renting, they have coverage for their property as well. Unfortunately, this is not the case.
Your landlord’s insurance will not cover your belongings if the structure in which you’re renting burns to the ground. If your tenant is burglarized and your personal property stolen, your landlord’s contents insurance will not cover that, either.
Your landlord’s insurance will only cover losses related to the structure. If you haven’t purchased contents insurance for the apartment, condo, or home you are renting, you will have to pay out-of-pocket to replace your property.
The loss of use coverage in a rental policy also has an effect on your personal belongings. If your apartment was unlivable because of a fire, your loss of use coverage would reimburse you for the additional expense of a temporary rental while your apartment or home is under repair. This would include temporary storage expenses for your belongings.
The bottom line for tenants and home owners is basically the same regarding contents. In order to get the right amount of coverage for your personal belongings, speak with our insurance agent and consider every coverage and whether it provides the appropriate protection specific to your needs.
Know More About
Landlord Home Insurance | Tenant Home Insurance
How to Find the Best Home Insurance Cover in Kenya?
The trick to find the best home insurance in kenya for your home is to ascertain the one that will offer you the maximum advantage in a claim, this goes one step ahead of the policy form and where our expert tips come handy, especially if you are buying a home insurance policy for the first time.
Besides, you also want to consider various value-added features such as – claims handling philosophy, special limits, and clauses.
🏡 What Makes One Home Insurance Company Better Than Another?
People don’t realize that a significant part of insurance is finding the insurance company that is apt for your needs and requirements. Insurance companies have their ways to develop their vision for target clients, and aside from the usual criterion that the companies stick to, each insurance company draft programs and discounts for pricing that draws the attention of their target clients.
Where you may spend a few shillings on a premium a year, you may make thousands more from a claim, if the claim is as per your lifestyle.
What does a Home Insurance Policy Cover?
While basic policies can vary, most cover damage and loss that occurs due to the following causes:
- Fire, lightning, earthquake, explosion
- Subsidence, landslip, or heave
- Storms and floods
- Malicious damage
- Theft of property, or damage caused by attempted theft
- Leaking water tanks and pipes
- Oil leaks from heating systems
- Falling trees or tree branches
- Breakage of TV, radio, or satellite receivers
- Impact from an aircraft, vehicle, or animal
- Riot
🏡 Items Limited Under Home Insurance Policy in Kenya
Special Limits in Home Insurance
Special Limits are the clauses there in your insurance policy mentioning the areas where the coverage has limitations in case of loss.
Special Limits on Home Insurance Commonly Limited Items
Following is the checklist of all the items that usually have special limits or exclusions under home insurance or domestic package cover –
- Money
- Securities
- Trailers
- Watercraft
- Jewelry
- Collections and collectibles
- Antiques
- Furs
- Wine
- Fine Arts
- Silverware
- Sporting Equipment
- Bicycles
- Firearms
- Landscaping
- Swimming pools
- Electronic Data Restoration
- Business Property
🏡 How to Buy Home Insurance Like A Pro?
This is where you need to ask the right questions, and if you do then in no time, you will figure out you are getting the best insurance coverage as per your needs. If you have a sound comprehension of the internal policy coverage limits, then, in that case, you will have a better idea whether it is important to add a special rider or support to your policy to add coverage.
🏡 Wrap Up
For many home insurance kenya seekers, insurance is just another piece of paper for them that is signed and handed over, rarely to be thought of again, make sure you are not one of them.
Embrace the above-discussed handy tips for choosing best home insurance in Kenya. If you still have any query, you can head out to Next Insurance, leading insurance company in Kenya, offering the best home insurance covers.
