House Owners To Pay Insurance -NAICOM

The Federal Fire Service has insisted that house built in the country must have insurance cover.

This is the agreement reached between the service and the National Insurance Commission, NAICOM, which said in a statement that home owners must obtain insurance policy against potential risks, including fire outbreaks, natural disasters amongst others.

Most home owners in the country don’t have insurance covers for their buildings. This is partly due to the perception that insurance is a dubious business, analysts say, insisting that many insurance companies reneged in paying indemnity to their clients.

Many buildings in the country are prone to fire hazards, which are mostly caused by environmental challenges and other human made factors

In the new agreement between NAICOM and the Fire Service, it was agreed that insurance cover for bullrings have many benefits that cannot be over-emphasized.

NAICOM said in a statement that the level of penetration will go up once building owners begins to obtain insurance cover, adding that apart from the benefiting the country economically the buildings will also be protected.

NAICOM said in the statement, “The Federal Fire Service, as a key member of the committee on insurance of public buildings and buildings under construction, has agreed to integrate Fire Insurance Policy into their checklist. This move aims to boost compliance levels and promote insurance penetration in Nigeria.

“The partnership is expected to have far-reaching benefits, including improved settlement for beneficiaries of building collapse victims, mitigation of potential risks, protection of investments, and promotion of economic growth.”

Highlighting the key aspects of the agreement, NAICOM said, “Enhanced compliance, as the integration of the fire insurance policy into the Federal Fire Service’s checklist will ensure adherence to insurance regulations.

“Improved insurance penetration: Increased awareness and uptake of insurance products among building owners and developers. Risk mitigation: Proactive measures to minimise potential risks associated with building collapse and other related hazards, and Economic growth: Contribution to Nigeria’s economic growth through increased investment, job creation, and financial stability.”