Why Independent Surveys Matter When Buying Insurance in Nigeria

What is an independent survey?

An independent survey involves a detailed assessment by a third-party expert. This expert evaluates the condition and value of properties, goods, or assets before purchasing insurance. The aim is to ensure that the insurance coverage is appropriate for the specific situation.

Why do independent surveys matter in Nigeria?

In Nigeria, the importance of independent surveys cannot be overstated. With diverse risks ranging from flooding during the rainy season to power supply issues caused by NEPA, it is essential to accurately understand what you are insuring. An independent survey helps identify unique risks and provides clarity on how much coverage you need. Without this, insured parties might find themselves underinsured when losses occur, leading to significant financial damage.

Additionally, the Nigerian insurance market is governed by bodies like NAICOM (National Insurance Commission) and NIMASA (Nigerian Maritime Administration and Safety Agency). These organisations enforce regulations that aim for transparency and proper valuation in insurance dealings. An independent survey supports compliance with these regulations and helps in avoiding disputes later.

How does an independent survey work?

The process begins when a property owner, business, or insurer hires an independent surveyor. Here are the typical steps involved:

• Initial Consultation: The surveyor meets the client to discuss the property or asset in question.
• Site Inspection: The surveyor conducts a thorough inspection, looking for structural issues, safety hazards, or other risks. For example, if you're buying insurance for a warehouse in Lagos, the surveyor will check for risks related to flooding.
• Assessment of Value: After inspecting, the surveyor determines the current market value of the property or asset. This is crucial because it impacts how much insurance you should purchase to cover your potential losses.
• Report Creation: A detailed report is prepared, including findings and recommendations. This document serves as a critical tool in negotiating insurance premiums.
• Review and Implementation: The client then reviews the report to adjust coverage needs and work with underwriters to secure appropriate insurance.

What should you watch out for?

Conducting an independent survey is beneficial, but there are a few essential factors to keep an eye on:

• Choosing a Reputable Surveyor: It is vital to hire a surveyor with relevant experience and good reviews. Request references and check their track record in the industry.
• Understanding the Costs: Independent surveys involve fees, which can vary significantly. Be clear about the costs involved upfront to avoid surprises.
• Timely Completion: Make sure to outline your timeline when hiring a surveyor. Delayed surveys may push back your insurance, exposing you to risks.
• Following Recommendations: Take the report seriously. If the survey identifies specific risks or needed improvements, work on these before finalising your insurance.

What to do next?

Once you understand the importance of independent surveys, prepare to integrate this practice when buying insurance in Nigeria.

• Schedule a Survey: Start by contacting a reputable surveyor in your area, such as Lagos or Abuja, to discuss your specific property or business needs.
• Consult with Your Insurer: Share the results of the survey with your insurance provider. This will aid in determining suitable coverage and premiums.
• Ensure Compliance: If you are a business owner, consider making independent surveys a regular practice to comply with local regulations and protect your investments.
• Partner with Experts: Finally, consider using advisory firms like Julimer Advisory to guide you through the insurance process. We provide expert risk assessments and can help navigate the complexities of the Nigerian insurance landscape.

In conclusion, independent surveys play a crucial role in ensuring you have the right insurance coverage in Nigeria. They provide clarity and protect against unexpected losses. By understanding their importance, working with reputable surveyors, and ensuring you adhere to local regulations, you can make informed insurance decisions for your business or home.