Home insurance covers against loss if your house (the actual building) is damaged as a result of a fire and related perils that typically include:
- Storms and Flooding
- Escape of water or oil
- Subsidence, ground heave or landslip
- Impact by road vehicles, horses or cattle.
- Falling TV or radio receiving aerials, their fittings and masts.
- Riots, civil commotion, strikes, labour or political disturbances, malicious damage or vandalism
- Theft or attempted theft
Some insurers in Kenya extend the above to offer additional coverage such as the costs of alternative accommodation and other extensions.
Sections of a Home Insurance Policy
A home insurance policy in Kenya will typically have four sections, namely:
- Buildings – this is the section where the actual physical structure is covered against fire and related perils. This includes elements such as external walls, fences, driveways, paths, garages and other buildings in the same compound. If the insured doesn’t own the building, this section is left blank.
- Contents – The contents section of a home insurance plan covers household contents against damage caused by fire and related perils as well as burglary.
- All risks – There are some possessions which we normally carry with us and which may be lost outside the home. Examples include; mobile phones, laptops, cameras, spectacles, jewellery, watches and so forth. Insurers normally place limits on the value of single items. This section also comes with an excess (an amount which the insured is responsible for in the event of loss or damage).
- Legal Liability – there are four kinds of liability that are typically covered in a home insurance policy:
- Personal liability of the insured as a private individual.
- Liability of the insured if he is a tenant in the building
- Liability of the insured if he employs domestic servants in the building.
Coverage Extensions in a Home Insurance Policy
Many insurance companies in Kenya offer a range of policy extensions at an extra. Some of the extensions available include:
- 24-hour helpline covering legal advice and emergency assistance with repairs.
- Accidental loss of money and credit cards and/or loss due to fraudulent use of credit cards
- The accidental loss of or damage to bicycles and accessories
- Accidental loss of or damage to sports equipment and specialist sports clothing
- All risks coverage for personal possessions taken outside the home.
- Loss of or damage to frozen foods due to a change in temperature or contamination by freezing agents
- The legal costs involved in taking legal action against third parties or defending claims against the insured.
- Theft by your domestic worker.
Typical Exclusions in Home Insurance Policies
- Confiscation of property
- Deliberate acts
- Existing damage which arose before cover started
- Failure of computer equipment to recognise the true calendar date
- Radioactive contamination
- Sonic bangs
- War risks
Cost of Home Insurance
Home insurance is inexpensive. For example, a tenant with contents valued at Kshs 500,000 can expect to pay an annual premium of between Kshs 5,000 and Kshs 10,000 per year. Someone with a building valued at 10 Million can expect to pay about Kshs 20,000 per year to cover the building.
However, there are a number of rating factors and each risk is unique. Are you interested in home insurance? Please do not hesitate to request a no-obligation quote and one of our insurance gurus will get in touch with you.