Is Property Insurance Mandatory in Nigeria?

In some situations, property insurance is not optional.

The Nigerian Insurance Act requires specific types of buildings and construction projects to carry insurance coverage.

These laws exist to protect both property owners and members of the public who may be affected by structural accidents.

Two forms of compulsory insurance are particularly relevant to real estate development:

Contractor’s All Risk insurance

Insurance for public buildings

Each addresses different phases of the property lifecycle.

Contractor’s All Risk insurance applies while a building is still being constructed. Public building insurance applies after the building is completed and occupied.

Understanding the first of these requirements requires examining how construction risks are insured.

Mary Edet,

Private Real Estate Advisor,

Edet Real Estate Advisor.