The Federal Government has announced that all buildings must now be insured. While the policy aims to improve safety and protect property, many Nigerians fear it could push house rents higher as landlords try to recover extra costs.

What the new rule means

Compulsory building insurance simply means property owners are required to buy an insurance policy for their buildings. In plain terms, it’s an added yearly cost for many landlords and developers, whether the property is residential, commercial, or mixed-use.

Why people are concerned

Critics say this policy lands at a tough time when living costs are already rising. They worry that landlords may add the insurance bill to rent, making accommodation even harder to afford. Some also view it as another financial burden that feels like a tax, instead of relief for struggling households.

The case for the policy

Supporters argue that building insurance can help when disasters or accidents happen—like fires, building collapse, or storm damage—so owners and tenants aren’t left stranded. They say it encourages safer buildings and ensures funds are available for repairs and compensation when things go wrong.

Possible effects on the market

• Landlords: May face new annual costs, which could influence rent decisions.
• Tenants: Could see rent adjustments, especially in high-demand areas.
• Insurers: More policies may lead to competitive pricing—or, if not managed well, higher premiums.
• Enforcement: Clear guidelines and fair implementation will matter to avoid confusion or exploitation.

What tenants and landlords can do now

• Ask for clarity: Tenants can request a simple breakdown if rent goes up because of insurance.
• Compare policies: Landlords should shop around for fair premiums and adequate cover.
• Engage collectively: Tenant associations and estate forums can push for transparency and gradual implementation.
• Track updates: Follow official notices so you understand timelines, exemptions, and approved insurers.

Bottom line

The policy is meant to improve safety and protect property, but proper communication and fair enforcement are key. Without that, many Nigerians will continue to worry about higher rents and a heavier cost of living.