The NIIA 2025 has revamped Nigeria’s insurance landscape. Here’s what every landlord, property investor, or manager must know to stay compliant and avoid penalties.

1. Understand the Mandatory Insurance Provisions 

The NIIA makes insurance mandatory for certain property types, especially public buildings, commercial structures, and buildings under construction. Ignorance is no excuse.

2. Identify If Your Property Falls Under “Public Buildings” 

Any building accessible to the public such asschools, hotels, offices, event centres, malls, falls under this. They must be insured against hazards like fire, collapse, or natural disasters.

3. Don’t Ignore Building Under Construction 

The Act mandates insurance for buildings under construction that are above two storeys. Builders and developers must comply from the start of the project.

4. Get Insurance from NAICOM-Licensed Companies 

Ensure your insurance policy is issued by a company licensed by NAICOM (National Insurance Commission). Fake or unlicensed coverage can lead to penalties.

5. Keep Proof of Insurance Readily Available

Inspections may occur. Property owners and managers must maintain copies of their Certificate of Insurance as proof of compliance.

6. Insure Common Areas in Multi-Tenant Buildings 

If you own or manage apartments or estates, insure common areas (e.g., stairways, gyms, parking lots). This responsibility lies with the owner/manager, not the tenants.

7. Liability Coverage is Key 

Beyond fire and building insurance, consider liability insurance to cover injury or death of occupants or third parties, especially in commercial spaces.

8. Educate Tenants & Staff 

Property managers should sensitise tenants and staff on the implications of the NIIA and encourage cooperation during inspections or insurance-related audits.

9. Renew Policies Promptly 

Insurance is not a one-off. Set reminders to renew policies before expiry. Gaps in coverage could mean exposure to lawsuits or regulatory fines.

10. Consult a Property Law or Insurance Professional 

Stay updated. The NIIA is new and enforcement may soon commence. Work with a lawyer or insurance broker who understands real estate law and can guide you correctly.

Conclusion:

The NIIA 2025 is here to protect lives, property, and investments. Leverage insurance as a tool for peace of mind and long-term security.

Message by Ayobayo Babade Esq, ACIArb (UK), FIMC, Tope Babade & Co (Real Estate Consultants).