‘Landlord or Tenant: Who Should Insure the Building?’ was a post that dealt with the issue of insurable interest in property insurance. We concluded that both the landlord and the tenants are obliged to insure the property in their individual capacities. One policy that is designed for the purpose of assisting the landlord and/or the tenant with their insurance rights is the House owners/Householders Comprehensive Policy.
The House owners/Householders Comprehensive Policy is a policy that is effected by the landlord (owner of the building) or tenant(s). The policy applies to both the buildings and the contents. This policy is a package policy due to the fact that it combines the elements of four different insurance classes – fire & special perils, burglary/theft, public liability and personal accident.
This policy is the adequate cover you need either as a landlord or a tenant this is due to the following reasons:
Structure of the policy
House owners/Householder Comprehensive Policy is structured into five different sections as follows:
Section I – Building (Fire & Special Perils Cover)
This section covers loss or damage to properties by:
Section II – Contents (Fire & Burglary Cover)
Content include household goods and personal effects which include jewelries, articles of gold, silver or precious metals, gem stones, work of art and so on. This section covers loss or damage to properties by all elements from section 1 above. It also covers loss or damage to properties by Theft (either by strangers and/or legal members’ theft).
Section III – Additional expenses of alternative accommodation
This section covers the cost of sourcing for an alternative accommodation as a result of the building become inhabitable due to a claim. It also covers loss of rent precipitated by a loss.
Section IV – Public Liability
This section covers liability or legal responsibility to Third Party for death, bodily injury or damage property. Third Party does not include the insured’s family members and domestic staff. For example, if a visitor comes to your house and during the time he was there, your ceiling fan fell on him and he was injured in the process, the policy covers it. Furthermore, if he sues you for damages as a result of the incident, the policy covers the cost of the litigation and the judgement. The limit of liability could be up to N1,000,000.
Section V – Personal Accident
This section of the policy covers only the policyholder or insured for death or accident up to an agreed sum. The benefit applicable can be made payable to the spouse or children of the insured in case of death.
In the final analysis, what are you waiting for? Are you waiting to have a bad experience as a landlord or a tenant? Why don’t you buy a House owner/Householder Comprehensive Cover for the peace of mind insurance bring? Delay is dangerous, act now!
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