Home insurance in Kenya
Two different things are being insured under one name. Buildings cover protects the structure. Contents cover protects what you would take with you if you moved. A landlord needs the first, a tenant needs the second, and an owner-occupier usually needs both.
Buildings or contents
| Item | Buildings | Contents |
|---|---|---|
| Walls, roof, floors | Yes | No |
| Fixed fittings and built-in units | Yes | No |
| Furniture and electronics | No | Yes |
| Clothes and personal effects | No | Yes, up to a limit per item |
| Liability as an occupier | Usually included | Usually included |
| Alternative accommodation | Where the building is uninhabitable | Usually not |
| Required by a lender | Yes, on a mortgage | No |
Insure buildings on rebuild cost, not market value. A house worth 8 million on a plot worth 6 million needs cover for the 2 million it would cost to rebuild, plus fees and debris removal.
What is typically covered
- Fire, lightning and explosion
- Burglary and theft with forcible entry
- Storm, flood and water damage from burst pipes, where included
- Accidental damage to fixtures, and to contents where the extension is bought
- Occupier's and personal liability
- Alternative accommodation while the home is uninhabitable, on some policies
What is typically excluded
- Wear and tear, and gradual deterioration
- Damage from neglected maintenance — a leaking roof left for a season
- Theft without signs of forcible entry
- Damage while the home has been unoccupied beyond the stated period
- High-value items not separately listed — jewellery, watches, art
- Business stock kept at home, unless declared
Exclusions vary by policy. The list above reflects what is usual in the Kenyan market. Your own schedule and wording govern, and it is worth reading them once, properly.
Owner-occupier
Buildings and contents on one domestic package. The most common arrangement, and the easiest to under-insure on the contents side because nobody counts what is actually in the house.
Landlord
Buildings cover, plus loss of rent where the property becomes uninhabitable. Tenant damage is a separate question, and usually a tenant's liability, not yours.
Tenant
Contents cover and tenant's liability. The cheapest policy of the three, and the one most often skipped by people who then replace everything out of pocket.
Cost
Rated against the rebuild value and the contents value, adjusted for construction, location and security. Ask us for a figure with the sums insured stated, so you can see what is being covered.
Products we arrange
Home policies
Domestic cover is arranged as a package or as separate sections, depending on what you own and whether you are the owner or the tenant.
Domestic
- Domestic Insurance
- Theft & Burglary Insurance
- PVT
A domestic package normally bundles buildings, contents and occupier's liability under one renewal date. Theft and burglary can also be bought on its own, which is usual for a tenant who owns contents but not the building.
PVT — political violence and terrorism — is a specialist extension. It is not automatic on a domestic policy and has to be asked for.
Questions we are asked
What is the difference between buildings and contents cover?
Buildings cover insures the structure — walls, roof, floors, fixed fittings and permanent improvements. Contents cover insures what you would take with you if you moved: furniture, electronics, clothes, and personal effects. A mortgage lender usually requires buildings cover; nobody requires contents cover, and most people need it more.
I rent. What do I need?
Contents cover, and usually tenant's liability. The building belongs to the landlord. Your furniture, your electronics and the cost of having to move out after a fire are yours.
What is not covered by home insurance?
Wear and tear, gradual deterioration, and damage from poor maintenance are standard exclusions. So is theft without forcible entry, and damage caused by unoccupied periods beyond the policy's limit.
How much does home insurance cost in Kenya?
Buildings cover is rated against the rebuild value, and contents against the value of what is inside. Domestic packages are among the cheapest policies in the market, which is why under-insuring them makes little sense.
What is a domestic package?
A single policy combining buildings, contents, and personal liability, sometimes with an accidental damage extension. It is the standard product for a home, and it is easier to administer than three separate policies.
Tell us what is inside the house.
A rough inventory and a rebuild estimate are enough to start. We will help you get the sums insured right, which is where most home claims fall short.