What’s Covered On Home Insurance Policy In Kenya?

Domestic or home insurance is one of the best insurance products yet it is not so popular in Kenya. It is also one of the most affordable with the premiums starting as low as 0.1% of the total sum to be insured. Many Kenyans take it after being compelled by commercial banks and housing finance companies to protect the mortgage, which they have taken.

Home insurance consists of two key sections, Building Cover and Household Contents cover. A domestic insurance policy in Kenya must have at least one of these mandatory sections in addition to other optional sections like All Risks Cover, Occupier’s Liability and Owner’s Liability and Work Injury Benefits Act (WIBA). Below are the details of the different mandatory and optional sections on the policy:

Section A: Building Cover

This covers the house/apartment from natural perils like earthquakes, flooding, lightning, storms, thunder and other man made perils like fire and burglary. It is recommended for the homeowners and landlords but not those who are renting the premise. IT also covers the Fittings, Perimeter wall, Outbuildings & swimming pool – where applicable. The premise to be insured must be of a first class construction meaning that semi-permanent structures are not included. The risk for this cover may also vary depending on the location of the property; some areas in Kenya are prone to natural events like flooding.

One significant risk that is not covered here is Political Violence and Terrorism (PVT), similar to car insurance, this can be bought as an extension to the basic cover for a given premium rating.

In the event of a claim, the insured will be compensated for the damage and alternative accommodation will be paid for a period while the property is restored.

Some of the top insurers in Kenya also cover the loss of rent for a period of 12 months if the insured event occurs.

Section B: Household contents cover

This is the second major section in the home insurance policy that covers the non-moveable contents of the home like kitchen appliances, television sets, home theatre systems and Hi-Fi, clothing, furniture, beddings and generally anything that doesn’t leave the home. These are covered from earthquakes, flooding, lightning, storms, thunder and other man made perils like fire and burglary. This cover is recommended for a person renting the property.

Section C: All Risks Cover

This is an optional section on the domestic insurance policy but is one of the most popular. It covers all the movable items like mobile phones, tablets, laptops, jewellery, cameras and any other items that are normally carried out of the house. This covers against natural perils, theft, fire and accidental damage.

Because of the high risks to these types of items, sizeable excess applies for each and every claim or loss, please check your policy for details.

Section D: WIBA

This is Work Injury Benefits Act (WIBA) of 2007 in Kenya to which every employer must adhere. It cover to cater for any medical expenses that may arise from the injury of any domestic staff like maids, security guards, gardeners, drivers etc during the course of executing their duties. It also compensates for cases of Permanent and Total Disability (PTD) and death.

Many insurers provide this free of charge for one domestic employee included on the home insurance policy.

Section E: Owner/Occupier’s Liability

This is a insurance against any legal liability that an owner or occupier of the insured property may face due to death, injury or property damage. This may be in form of lawsuits from neighbours, domestic staff, guests and other third parties excluding members of the insured’s family. Some insurance companies in Kenya provide this section free of charge with either Building Cover or Contents cover. An extra limit can be added on top of this free limit at a small premium.