What Does Property Insurance Cover in Nigeria? (Fire and Special Perils Explained)

In Nigeria, most property insurance policies are structured as Fire and Special Perils policies.

These policies protect buildings against specific events that can cause structural damage.

Insurance coverage is event-based. Compensation is only paid if the damage results from an event explicitly listed in the policy.

Common Covered Events

Fire
Damage caused by uncontrolled burning.

Lightning
Electrical discharge from the atmosphere damaging the building.

Explosion
Pressure explosions from gas systems or boilers.

Storm damage
Windstorms or severe weather affecting the structure.

Flood damage (usually optional)
Heavy rainfall or rising water damaging the building.

Impact damage
For example, a vehicle colliding with the structure.

Aircraft damage
Damage caused by aircraft or falling aircraft parts.

Riot, strike, or civil commotion
Damage caused by public disturbances or protests, usually purchased as an additional extension.

Because coverage is event-based, the insurer must confirm that the damage resulted from one of the listed events before compensation is approved.

Knowing what risks are covered is only part of the picture. When damage occurs, the next question is how the claim process actually works.

Mary Edet,
Private Real Estate Advisor,
Edet Real Estate