How Property Insurance Claims Work in Nigeria

This process ensures that the cause of the damage, the scale of the loss, and the applicable policy coverage are properly verified.

Step 1: Notification

The property owner must inform the insurer that damage has occurred.

Most policies require notification within a specified timeframe, typically 24 to 72 hours after the event.

Early notification allows the insurer to begin investigation quickly and prevent further loss.

Step 2: Appointment of a Loss Adjuster

The insurer usually appoints a loss adjuster.

A loss adjuster is an independent professional responsible for investigating insurance claims.

Their work typically includes:

• inspecting the damaged building

• determining the cause of the damage

• estimating the financial cost of repairs

• verifying whether the event falls within policy coverage

Step 3: Claim Valuation

After inspecting the property, the loss adjuster calculates the cost required to restore the building to its pre-loss condition.

This estimate forms the basis of the claim settlement.

Step 4: Settlement

If the claim is approved, the insurer pays the compensation.

Payment may be made either:

• directly to the property owner, or

• directly to contractors carrying out repairs.

Insurance companies operating in Nigeria remain subject to regulatory supervision by the National Insurance Commission, which oversees claim settlement standards and financial solvency.

Beyond voluntary insurance policies, Nigerian law also requires certain buildings and construction projects to carry insurance coverage.