Content insurance is a type of insurance that pays for the damage, resulting from fire or flooding, or loss of an individual’s personal possessions provided they are located within that individual’s home. Some contents insurance policy however, offer restricted cover for personal belongings that are outside the insured property. Home contents insurance serves the purpose of indemnifying a policyholder in the event of theft or damage. It covers basic home contents such as furniture, kitchen utensils, electronics, toys, ornaments, clothes, jewellery etc.

Why Do You Need It?

Of course, the chances you or the universe sets your house on fire are close to none even though the possibility of people coming to rob you and making away with your personal belongings is very much there. What then happens if by one careless act or a twist of fate or bad luck, your house lights up and before the firefighters get there (for whatever reason), the deed has been done, all that you amassed over the years are nothing but ashes. What do you do then? Expend millions on the stressful process of replacing all the belongings from scratch when the option to have them replaced for you has always been there?

The most common mistake people make all the time is being in haste to sign an agreement form and not bothering to read the terms and conditions. This act is what leads to a lot of disputes regarding what insured parties are entitled to and what they are not in the event of theft or damage of the beneficiary’s belongings.

Tenants should be very much aware that their landlord’s home insurance does not necessarily cover their belongings. To avoid disappointments and stories that touch, tenants are advised to get their own contents insurance policy from one of the many home contents insurance companies available for tenants and landlords alike in Nigeria.

The following are some of the common things that lead to disputes between policyholders and home contents insurance companies:

Ordinarily, roommates are not covered by a contents insurance policy. If you are living with someone and intend to be compensated in the event of loss of property, you need to tell the person to include your name in his/her insurance agreement or get your own separate policy.

Family members are automatically insured. On signing an insurance form, you are equally insuring your spouse and children. However, it is always a good idea to clarify these things with the insurance company rather than assuming.

While your roommate’s personal effects will not be covered if damaged or stolen, a guest in your house may be compensated, provided the damage or theft happened while the guest was under your care.

Contents taken along with you while moving may be covered, depending on the agreement you have with your insurance broker.

In the case of a theft or any form of damage to the contents an insured took along when he or she is vacating, or on a business trip, he/she may be indemnified depending on the agreement with the home contents insurance company.

Note: All the above might be subject to variation depending on the agreement between you and your insurance company.

Are your home contents insured? If not run to the nearest home contents insurance company and get it done. Better be safe than sorry.