Mortgage & Bank-Required Home Insurance
Fire and allied-perils cover on your home's structure that satisfies your mortgage lender's condition of loan. HFC, KCB, Equity, Stanbic, NCBA and others. Rated on rebuild value; arranged on WhatsApp.
from
KSh 9,000/year
Most Kenyan mortgage lenders: including HFC, KCB, Equity, Stanbic, and NCBA: require fire and allied-perils insurance on your home's structure as a condition of the loan. This bank-required home insurance is rated on the rebuild (reinstatement) value of the building, not its market price, typically about 0.25% of that value, from roughly KSh 9,000 a year for a smaller property. The bank is usually noted on the policy as the first loss payee or co-insured. Vike arranges compliant cover at the exact sum insured your lender specifies, confirms the wording with the bank, and onboards you on WhatsApp, often the same day.
- Required by HFC, KCB, Equity, Stanbic, NCBA & most lenders
- Rated on rebuild value, not market value. About 0.25%
- From roughly KSh 9,000/year for a smaller property
- Bank noted as first loss payee / co-insured on the policy
- Covers fire, lightning, explosion + allied perils on the structure
- Same-day, WhatsApp-arranged; quotes from 10+ IRA-regulated insurers
Most Kenyan mortgage lenders: including HFC, KCB, Equity Bank, Stanbic, and NCBA: require fire and allied-perils insurance on the structure of your home for as long as the loan is outstanding. It is written into the offer letter as a condition of the loan: the bank wants the asset securing its money protected against fire and the major perils, and it usually requires to be noted on the policy as the first loss payee (or co-insured) so any claim is routed through the loan account first. Without valid cover in place, the bank can decline to disburse, or take out its own (usually pricier) policy and bill you for it.
This cover is rated on the rebuild, or reinstatement, value of the building: what it would cost to rebuild the structure from scratch, excluding the land. That figure is almost always different from the market or purchase price, and getting it right matters, because under-insurance triggers 'average', where the insurer scales down any claim in proportion to the shortfall. As a rough planning figure the premium is about 0.25% of the rebuild value (so roughly KSh 9,000 a year for a KSh 3.6M reinstatement value, scaling up from there), though the exact rate depends on the insurer, construction type, and location.
Vike places this cover with 10+ IRA-regulated insurers and deals directly with the bank's insurance desk. We confirm the sum insured the lender requires, ensure the bank-clause wording (first loss payee / mortgagee interest) is exactly what the offer letter asks for, and get the certificate to your relationship manager. Most onboarding and renewals are handled over WhatsApp so you are not chasing paperwork between branches.
What It Covers
The building structure: walls, roof, foundations, fixtures and permanent fittings
Fire, lightning, and explosion damage to the structure
Allied perils: storm, flood, impact, burst pipes, and (where added) earthquake
Riot, strike, and malicious damage (RSMD) to the structure
The bank's interest, noted as first loss payee or co-insured per the offer letter
Architect's, surveyor's, and debris-removal costs following a rebuild
Optional contents, all-risks, and owner's-liability extensions on the same policy
Who It's For
Anyone buying a home on a mortgage who must show cover before drawdown
Existing mortgage holders whose annual insurance renewal is due
Buyers whose bank has asked for a 'fire policy' or cover 'noting the bank's interest'
Owners switching from the bank's own (often costlier) policy to their own broker
Off-plan and newly completed purchasers finalising their loan conditions
Types We Cover
Each profile is rated and underwritten differently. Talk to us so we can match your specific situation.
Basic Fire & Lightning
The minimum most lenders accept: fire, lightning, and explosion cover on the structure at full reinstatement value, with the bank noted as loss payee. Cheapest route to satisfying the loan condition.
Extended Perils (Domestic Package)
Adds storm, flood, impact, burst pipes, and RSMD to the fire base, and usually contents and owner's liability, under one homeowners-style policy. Most banks accept this, and it protects you as well as the lender.
Mortgaged Buy-to-Let (Landlord)
For a mortgaged property you let out: bank-required structure cover combined with loss of rent and landlord liability. Satisfies the lender while covering you as a landlord. See our Landlord Insurance page for the full feature set.
Apartment / Sectional-Title
Where the building is insured by the body corporate, the bank may accept a noting on the block policy plus your own contents cover. We confirm what your specific lender will accept for an apartment.
Real-World Scenarios
The bank won't release the loan without a policy
Your offer letter makes fire cover a condition of drawdown. We issue a compliant certificate at the reinstatement value the bank specified, with the bank noted as first loss payee, so your relationship manager can release the funds. Frequently the same day.
Fire damages a mortgaged house
The structure is reinstated at rebuild cost. Because the bank is the loss payee, the claim settlement is coordinated with the loan account, protecting both the lender's security and your equity in the home.
The bank put you on its own policy
Many lenders auto-enrol you onto a block policy and add the premium to your repayments, often above market rate. You are entitled to arrange your own compliant cover instead; we match the bank's required sum insured and wording, and typically save you money.
Optional Benefits & Add-ons
Contents cover for your belongings (added to the structure policy)
All-risks rider for portable valuables (laptops, jewellery, cameras)
Owner's / occupier's liability for accidents at the property
Loss of rent / alternative accommodation after an insured loss
Earthquake and subsidence / landslip extensions
Political violence and terrorism (PVT)
Availability varies by underwriter. Our advisors will confirm what is available on your chosen policy.
Frequently Asked Questions
Does HFC require home insurance on a mortgage?
Does the bank pay for the home insurance or do I pay?
What sum insured does the bank need for home insurance?
How much does bank-required home insurance cost in Kenya?
What does 'noting the bank's interest' or 'first loss payee' mean?
Can I use my own insurer instead of the bank's policy?
Is contents insurance included, or just the building?
How quickly can I get cover so the bank releases my loan?
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