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In spite of its enormous advantages, insurance is
still something that many Nigerians ignore, that is, until they need it. If you
rent a house, an apartment, or just a room, you might be assuming that your
landlord’s property insurance should cover damage to both the building and its
contents.

The typical home insurance policy will cover
damage to the actual building and its structure, that is, the bricks and
mortar; this is what a landlord is obliged to have in place to cover his
property. It will not protect your belongings though; it is for you to protect
your possessions.

Take an inventory of your
belongings

Estimate the value of your personal possessions
at current prices. This is the amount it would cost for you to replace them
with new items if they were damaged or destroyed. It is a good idea to take an
inventory, particularly of the expensive items, so that you can set a coverage
limit. Among the things to include in the inventory are electrical appliances,
indoor and outdoor furniture; musical instruments, laptop computers, and other
electronic equipment, camera, some recreational or sporting equipment; valuable
china, and silverware.

Some people go as far as to photograph or make a
video recording of their rooms and contents. This might be a little tedious but
a good photograph of furniture, electronic appliances and any significant
individual items such as a piano or other musical instrument a special CD, or
old record collection makes sense.

Keep receipts of items of significant value along
with your records as they may come in handy in helping you prove value should
you need to. It is useful to write down the brand names and model numbers of
the appliances and electronic equipment. Store the list, photos and any other
records away from the premises so that it isn’t destroyed if there is some
damage at your home.

Bear in mind that the values of your personal
belongings will change so you should revisit your policy each year when it is
due for renewal and adjust as necessary to ensure that you are always properly
covered

Is your jewellery
insured?

You might have some personal possessions that are
particularly valuable; list these specifically and consider paying for
additional cover on them. This could include jewellery, artwork, and camera
equipment. Many insurance policies offer very limited coverage for such items
so you should consider them specially.

Do you have adequate coverage for your jewellery?

Read your homeowner’s or renter’s insurance
policy carefully to find out the amount of coverage it provides for your jewellery;
what you need is insurance that will cover loss, theft and damage.

If you don’t list your jewellery specifically, it
will be included in your basic household policy under a blanket coverage, which
usually comes with a limit. You may choose to add a rider to your homeowner’s
policy to cover jewellery that is above a certain value. If your jewellery is
extremely valuable, it makes sense to opt for a separate policy that covers
significant pieces, this way you can insure such items for higher amounts than
you would ordinarily be able to do under a basic household policy. Naturally
you would be paying a higher premium for such items.

Sentimental value

We all have some possessions that no money can
replace; these are things that have sentimental value as opposed to monetary
value, such as the memories found in family photographs, certificates of
achievement and so on. Your insurance policy will not cover these but for some
of such items, you can take some practical steps to protect them by scanning
and saving such documents and photographs electronically.

You sometimes hear people say that they don’t have anything worth
protecting; yet imagine the cost of furnishing, replacing appliances and having
to purchase a new wardrobe? Do a rough calculation of how much all your
possessions are worth and you will probably find that the premium is a small
price to pay for the peace of mind from having your belongings insured. Whether
you are a landlord or a tenant, home insurance is an important part of your
personal financial management, particularly if the worst does happen. And, make
sure you know where you kept the policy.