Some people think that buying a house is the final stage in becoming a home-owner. Once all the payments have been finalized, you would think that it's time to sit back and relax. That seems fine now but what happens when your house catches on fire or gets hit by a speeding vehicle? What if your neighbour puts a ladder straight though your window, knocking down your support beam? What then? Do you incur all the costs? Do you force the perpetrator to pay for all the damages? Maybe the best thing you can do is call your insurance company.

Risk Factor

In a country that is prone to annual floods and constant blackouts, the risk of property damage can be relatively high depending on where a house is located. It therefore helps to have a safety-net in case such tragedies come to pass.

Take for instance the floods which recently destroyed mud houses in Kasuku and Rironi . What’s worse is the fact that more than 200 internally displaced people (IDPs) lost their makeshift homes in Nyandarua. This is the third time floods have hit the area this year.

For someone living in a tent or a mud house, home insurance may seem irrelevant. For those living in more legitimate structures, it can become a basic requirement.

A report by the Disaster Relief Emergency Fund (DREF) states that over 4600 houses were destroyed by fire-related disasters in 2011.   Most of them were not insured and the owners had to rely on aid from DREF, the Red Cross and the Red Crescent.

Cost of Insurance

Property insurance depends on the quality of the structure. A strong and sturdy building will cost more to insure than a low-quality structure. Some companies tend to favor buildings which pass a set of requirements outlined in the Kenya Building Code. If it takes a week to build and a few minutes to destroy, then insurance seems like a waste of good money.

According to UAP Insurance, insuring a building costs the owner an annual premium of 0.15% of the property's value. The contents in the property cost a premium of 1% while insurance for residents costs KES 500 per person.

If you live in a place like Budalangi, where floods are rampant, you may want to make a few financial sacrifices and subscribe to property insurance. The fact remains that some people can stand to benefit from taking the time and effort to insure their property.