Flood Insurance in Nigeria – Do You Need It?

What Is Flood Insurance?

Flood insurance is a special type of insurance that helps you recover when water causes serious damage to your property. Flood water can destroy buildings, wash away household items, ruin electronics, damage furniture, and even affect your walls, floors, and foundation.

Unlike regular home insurance, flood insurance is focused only on damage caused by flooding.

In simple terms:If too much water enters your home or office and causes loss, flood insurance helps you fix the damage or replace your property.

It doesn’t matter whether the flood comes from rain, rivers, drainage blockage, or broken dams—if the water is the main cause, flood insurance can cover it (depending on the policy).

How Does Flood Insurance Work in Nigeria?

Flood insurance in Nigeria works like other types of insurance. You buy a policy from an insurance company. You pay a fee (called a premium). If your property is damaged by a flood, you file a claim, and the insurance company pays you money to fix or replace what is damaged.

The Process:

1. You buy a flood insurance policy from a licensed insurance provider.

2. You pay a premium monthly or yearly.

3. If a flood happens and causes damage:

   • You take photos and report the damage.

   • You file a claim to your insurance company.

   • The company sends someone (an assessor) to check.

   • You get paid or your property gets repaired.

   • Note: Every policy has terms, limits, and exclusions. Read carefully!

Common Causes of Flooding in Nigeria

Floods don’t just happen by magic. There are reasons why certain places in Nigeria flood more than others. Knowing these causes helps you understand your risk level.

Major Causes of Flooding in Nigeria:

Who Really Needs Flood Insurance in Nigeria?

Let’s be honest: not everyone wants insurance. But some people really need it more than others.

You should strongly consider flood insurance if you are:

• Living in a flood-prone area (like Lagos, Port Harcourt, Benue, Bayelsa, etc.)

• A homeowner who has invested money in your house

• A landlord renting apartments or shops

• A tenant with valuable electronics, furniture, and clothes

• A small business owner (salon, barbershop, shop, tech hub)

• A student living off-campus with gadgets and school materials

• Running a farm or warehouse near rivers or lowlands

If you’ve ever lost property due to rain or flood, you’ll know it’s cheaper to prevent loss than to repair it.

What Flood Insurance Covers (And What It Doesn’t)

What It Usually Covers:

• Damaged walls, floors, and ceiling due to floodwater

• Broken or short-circuited electronics and appliances

• Furniture and household items destroyed by water

• Carpets, rugs, and fittings affected by floods

• Cost of cleaning and drying the building

• Rebuilding costs (if part of your home is destroyed)

• Sometimes even temporary accommodation (optional add-on)

What It Might NOT Cover:

• Damage due to slow leaks (not sudden floods)

• Mould or rot caused by old water damage

• Loss of income (unless added to the policy)

• Vehicles (need separate motor insurance)

• Outdoor items like fences, plants, or swimming pools

• Always ask your insurer what is included and what is excluded in writing.

Types of Flood Insurance in Nigeria

Depending on your need, you can buy different types of flood insurance:

1. Residential Flood Insurance

For private homes, flats, or shared apartments. Protects buildings and belongings.

2. Commercial Flood Insurance

For businesses—shops, offices, small enterprises, salons, restaurants.

3. Tenants or Renters Flood Insurance

Protects renters’ property inside a rented house.

4. Building-Only Flood Insurance

Only covers structure—not the things inside.

5. Contents-Only Flood Insurance

Only covers your personal items—not the building.

6. Custom or Bundled Insurance

Combines fire, theft, flood and more in one policy.

Pros and Cons of Flood Insurance

Let’s weigh the benefits and the downsides.

Pros:

• Financial protection against major losses

• Peace of mind during rainy season

• Covers expensive items (TV, generator, laptop, etc.)

• Good for landlords—helps protect investment

• Tenants benefit—protects valuables inside rented homes

• May be required for business loans or property loans

Cons:

• Premium can be high in high-risk areas

• Does not cover everything unless you buy add-ons

• Some policies have waiting periods (e.g., 30 days)

• Requires documentation to make claims

• Not many Nigerians are educated about it yet

Flood Insurance vs. Homeowners Insurance

Some people think flood damage is already covered under homeowners insurance. That’s not always true.

Conclusion: If you live in a flood-risk area, you need both homeowners and flood insurance.

How Much Does Flood Insurance Cost in Nigeria?

Flood insurance is not free. But it’s often cheaper than repairing flood damage yourself.

Factors That Affect Cost:

• Your location (flood-prone = more expensive)

• Type of building (bungalow vs. duplex)

• Value of items inside your home

• Whether you rent or own

• The insurance company you choose

• Coverage type: building only, contents only, or both

Price Estimate (2025):

How to Buy Flood Insurance in Nigeria – Step-by-Step Guide

Step 1: Assess Your Risk

Check if your area is flood-prone. Have you or your neighbors experienced floods before?

Step 2: Decide What You Want to Insure

Do you want to cover just the building? Or also furniture, electronics, clothes?

Step 3: Contact Licensed Insurance Providers

Speak to companies like Leadway, AXA Mansard, AIICO, Mutual Benefits, etc.

Step 4: Get Quotes and Compare

Ask for premium prices, exclusions, coverage limits, waiting periods.

Step 5: Read the Policy Carefully

Understand what is covered, what is not, and how to make a claim.

Step 6: Pay Your Premium

Choose a monthly or yearly payment plan.

Step 7: Keep Your Documents Safe

Save your insurance certificate, payment receipts, and contact details.

Mistakes to Avoid When Buying Flood Insurance

Many people make errors that cost them later. Avoid these:

• Not reading the policy terms

• Assuming homeowners insurance includes flood

• Waiting until flood season to buy (too late!)

• Hiding previous flood damage from insurer

• Underinsuring (buying low coverage to save cost)

• Not updating your policy when you buy new items

Real-Life Flood Insurance Scenarios in Nigeria

Case 1: Chuka – Lagos Island Resident

Chuka lives in Lagos Island. One rainy night, water entered his apartment and damaged his N500,000 electronics. He had flood insurance and filed a claim. The insurer paid N400,000 based on policy terms.

Case 2: Kemi – Shop Owner in Benin

Kemi runs a beauty salon. Heavy rain destroyed her furniture, dryers, and POS machine. No insurance. She borrowed N300,000 to repair. Now she’s planning to buy business flood insurance.

Case 3: Emeka – Student in Port Harcourt

Emeka lives in off-campus housing. Flood from blocked drainage damaged his laptop and textbooks. His parents had bought contents-only flood insurance. Claim was approved.

Best Flood Insurance Companies in Nigeria (2025 Update)

Summary Table: Quick Facts About Flood Insurance

Conclusion: Is Flood Insurance in Nigeria Worth It?

Yes. 100%. If you live in any area that has ever experienced flooding, then flood insurance is not just a luxury—it’s a wise investment.

One big rain can damage property worth hundreds of thousands of naira. For just a small yearly premium, you can protect your home, business, and belongings. Don’t wait until it’s too late.