Landlord Insurance in Nigeria: Cost & What it Entails

As a landlord who owns four rental properties in Nigeria, I can confidently say that I have found a way to build wealth and secure my financial future.

However, just like any investment, I understand that there is a need to protect my properties from unexpected events.

This is why I purchased landlord insurance for my properties – which is a powerful tool that safeguards my property and income stream.

In this blog post, I’ll explain what landlord insurance in Nigeria means, exploring its benefits, coverage options, and how it can empower you to secure your investment and achieve peace of mind as a landlord.

UNDERSTANDING LANDLORD INSURANCE

Rental property insurance, which is another name for landlord insurance, is a type of insurance created for people who rent out one or more homes or businesses.

This insurance protects you financially from the risks and liabilities that come with obtaining rental properties.

But being a landlord has its problems. Things like property damage, liability claims, and lost rent can happen.

These problems can ruin your dreams. That’s why getting landlord insurance in Nigeria is a smart move.

Landlord insurance helps keep your property and money safe.

It’s made specially for rental properties and their owners. It protects you from many unexpected issues that landlords face.

It doesn’t matter if you have one house for rent or many.

Landlord insurance in Nigeria gives you the confidence to deal with owning property. It covers you if there’s damage from nature, accidents, or even the worst of all – difficult tenants.

WHAT DOES LANDLORD INSURANCE COVER IN NIGERIA?

Imagine a scenario where a fire from no where erupts in your house for rent, causing severe damage to the building.

Or a violent wind rips through the area where you have your rental unit and damages the roof.

In such situations, you don’t expect your tenant to repair such but the landlord.

This is where landlord insurance comes in, providing financial compensation to repair or rebuild the property.

This ensures you’re not left with a hefty financial burden to restore your investment.

Aside protecting the physical structure, landlord insurance can also offer liability protection.

What this means is if a tenant gets injured on the property and sues you, the insurance can cover legal fees and any awarded compensation.

This safeguard comes in handy, especially when dealing with unforeseen accidents or circumstances.

BENEFITS OF HAVING LANDLORD INSURANCE IN NIGERIA

Having landlord insurance goes beyond simply covering repairs and legal costs.

It also offers a multitude of benefits that can help you as a landlord in Nigeria.

Here are a few key advantages to consider:

• Peace of Mind: Once you knowing you’re financially protected against unforeseen events, you can have the peace of mind to manage your rental properties.
• Easier Tenant Screening: Proof of landlord insurance can be a positive factor that can help in attracting responsible tenants. It shows your commitment to maintaining a safe and secure property.
• Reduced Maintenance Costs: Landlord insurance can help minimize the need for extensive maintenance down the line, by addressing potential risks before they become major problems for you. ALSO READ: TOP 10 BENEFITS OF HAVING PROPERTY INSURANCE IN NIGERIA.

In the next section, we’ll delve deeper into the the cost of landlord insurance and how to choose the right coverage for your specific needs.

COST OF LANDLORD INSURANCE IN NIGERIA

Unfortunately, there isn’t a definite answer for the cost of landlord insurance in Nigeria this 2024.

Several factors can influence the premium amount, making it difficult for me to give a specific price range without contacting the property insurance companies directly.

Whether you own a single flat or several units, there are various flexible insurance plans to protect your investment

Here’s why the cost can vary:

• Property value: The higher the value of your rental property, the more expensive it will be to insure.
• Location: Areas with higher crime rates or prone to natural disasters will likely have higher premiums.
• Type of building: Apartment buildings might have different insurance needs compared to single-family homes.
• Coverage details: The specific types of coverage you choose (e.g., amount of rental income loss covered, liability limits) will impact the cost.
• Deductible: A higher deductible (the amount you pay out of pocket before insurance kicks in) typically lowers the premium.

TYPES OF LANDLORD INSURANCE POLICIES IN NIGERIA

It is true that having the right landlord insurance in Nigeria is key to protecting your rental properties.

These policies help cover a range of risks landlords may encounter.

Let’s look at the common types available:

• Landlords Protection Nigeria: This policy covers property damage from things like fire, flood, or natural disasters. It also protects against theft or vandalism. It gives landlords peace of mind by financially protecting their properties.
• Property Insurance for Landlords: This policy focuses on the rental property’s structure. It covers damage to walls, roof, foundations, and fixtures. Thus, it ensures landlords are covered financially if there’s structural damage.
• Landlord Insurance Nigeria: This is a comprehensive policy tailored for landlords in Nigeria. It combines coverage for property damage, liability, and lost rental income. It offers landlords a complete protection package for their properties and finances.

Landlord insurance policies can be easily customized to fit any landlord’s needs and budget. .

Just make sure you assess the risks to your rental property and pick the policy that offers the right coverage for you.

ALSO SEE: CHEAPEST PROPERTY INSURANCE IN NIGERIA FOR HOMEOWNERS (2024)

COMMON QUESTIONS ABOUT LANDLORD INSURANCE IN NIGERIA

Even if landlord insurance protects the homeowner, there are two common inquiries you may encounter:

A. DOES LANDLORD INSURANCE COVER LOSS OF RENT FROM BAD TENANTS?

This is a crucial question for any landlord. The answer is that it depends on the specifics of your policy.

Some insurance policies may offer coverage for loss of rent due to a tenant’s eviction or if the property becomes uninhabitable due to damage they caused.

However, it’s important to note that coverage for unpaid rent due to financial issues from the tenant might not be included.

Be sure to carefully review your policy details and exclusions with your insurance provider to understand what situations qualify for loss of rent coverage.

B. DOES LANDLORD INSURANCE COVER TENANT CAUSED DAMAGE?

Yes, landlord insurance typically covers accidental damage caused by tenants.

For instance, if a tenant accidentally overflows a sink, causing water damage, the insurance might cover the repairs.

However, it’s important to understand that intentional acts of vandalism or malicious damage by your tenants are often excluded from coverage.

It’s also good practice to require tenants to carry renter’s insurance, which can cover their belongings and potential liability for certain types of damage they cause.

CONCLUSION

From the above, you can see that having landlord insurance is very important for any property owner in Nigeria.

It acts as a financial shield for you, safeguarding your investment from unforeseen events and ensuring a steady stream of income.

Don’t wait for disaster to strike.

Take a proactive approach to securing your rental properties by applying for landlord insurance in Nigeria today.