Domestic Cover Kenya: 5 Factors Affecting Cost of Home Insurance Kenya

It’s unfortunate how most homeowners think about insuring their home when they are scheduled to close. As a rule of thumb, as you construct or consider buying a home, you should include its insurance cost in the budget. Yes, unlike health, you home may be replaceable but, considering that it’s a huge investment; improper insurance of your residence can lead to large financial losses in case of any hazards (floods, strong winds, earthquakes, theft, fire etc.).

Well, you cannot purchase a car without considering (if nothing else) its gas mileage, can you? Similarly, you have to understand how domestic cover rates are calculated so as to gauge the costs of insurance.  Keep in mind, insurance is a “game of risks” and unlike in the Game of Thrones where the Starks were aware of the hazard _winter coming_, domestic related risks are unpredictable. So, the rule is, the fewer the risks the lower the premiums.

Below are the 5 facts you should know about domestic cover rates calculation in Kenya. That is factor that governs or dictates how much premiums you`ll pay.

5 Factors Determining Cost of Domestic Insurance Kenya

1. The location of your home

The location of your residence matters not only to your real-estate agents but also to your insurance agents. Why? Home location is indicative of the risks you`re likely to encounter/pose as a policyholder.

Under this, insurers consider how densely populated the area is, how close/far you are from fire hydrants, police station etc., the rate of crime in the neighborhood and potential risks from unfriendly/severe weather conditions like floods, landslides, strong winds etc.

2. The home

This deal with the general characteristics of your home. Starting with the age, type and size of construction to its replacement value. Newer homes cost less as their resistance to damage is high whereas big classy homes cost more.

The material used in the construction is also a key factor in addition to the dwelling coverage in square footage.

3. Liability protection

In most cases, domestic insurance takes into account the personal belongings contained in the home and liability protection for the residents and visitors who may get injured within the insured mileage. The higher the value of personal belongings (electronics, clothing, furniture etc.) the higher the rates.

4. Your credit score

The better the credit score the lower the rates. Why? Because the risk of losing your home to lenders is way less.

5. Discounts at work

The bottom line is, you have to evaluate how much risk you pose based on the factors outlined above to determine how much premiums you`ll be paying. However, it goes without saying that you can always lower your rates by relocating to safer regions, paying high deductibles and by binding coverage (i.e. insuring your properties, home, car, life, health with a single insurer).

Do you need domestic cover for your home or property?  Talk to us 🙂