Chronicle Editor
Judith Phiri , Business Reporter
THE Insurance and Pensions Commission (Ipec) has urged the public to adopt home insurance which is critical to cover losses and damages to an individual’s residence, along with furnishings and other assets in the home.
Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s house and assets in the home, according to Investopedia. The policy usually covers interior damage, exterior damage, loss or damage of personal assets and injury that arises while on the property. In an interview, Ipec Public Relations manager, Mr Lloyd Gumbo said home insurance was one of the cheapest insurance policies.
“Sometimes unlucky events happen in our lives including our homes. For example, one’s house may be damaged by fire, lightning, explosion, and earthquake. While the risk of those things happening is low, there is still a possibility that they may happen. It is, therefore, important that the public consider buying home insurance, which is relatively one of the cheapest insurance policies whose average premium rate is about 0.2 percent of the value of the property,” he said.
He said all short-term insurances are licensed to offer homeowners’ insurance, while if any policyholder feels that they have been unfairly treated by any of the regulated entities, they can report to Ipec for recourse. An insurance agent, Mr Gift Ndlovu said most people were renting, while most homeowners took lightly the need to insure their houses.
“If you ask people about home insurance they will tell you that they are renting, but when you dig deeper you would also find out that the homeowners also haven’t insured their houses. As a homeowner, whether it is you who is living in the house or you are renting it out, it is important to think about how you can protect your belongings from potential risks like fire, floods and theft among other things. Insurance that covers not only the structure of your house but also your home contents is very critical because it ensures you will get compensated if your home or household goods are damaged through fire, lightning, explosion, earthquake and accidental damage of water pipes just to name a few.”
He said there was also buildings insurance for businesses that covered buildings, fixtures and fittings against damage caused by theft, fire, lightning, explosion, earthquake, accidental damage of water pipes, and accidental breakage of windows among others.
Globally, the home insurance market was valued at US$ 233 billion in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of over seven percent between 2024 and 2032, according to the Global Market Insights (GMI). It said rising property values were a major driver among the several factors propelling the market.
“As property values rise, homeowners are becoming more aware of the importance of insuring their assets. The risk of natural disasters, theft and other incidents and various other factors are encouraging people to consider purchasing home insurance. Furthermore, government initiatives have also increased insurance awareness and encouraged more people to consider home insurance,” said GMI.
Online Reporter