Abysmal Insurance Patronage for Residential Properties in Ghana

Climate change and its consequences reinforce on the need to insure homes or residential properties as a way of adapting to disaster. Currently, the level of property (or home) owners patronage in property insurance is low. The aim of this paper was to assess why homeowners do not insure their properties. 95 residential property owners in Wa, the regional capital of the Upper West region of Ghana were interviewed on their property insurance status and reasons for their status. 80% homeowners had their properties uninsured and stressed that the insurance companies charges high premium, cumbersome and non-transparent process reinstatement, and expressed low confidence in the insurance operators. Others lamented their dependence on the support from the National Disaster Management Organisation, Ghana in case of any disaster. Other findings included little knowledge on property insurance and that the home insurance companies are quiescent in the municipality. The study was carried out on a small geographical scope and national-scale survey is recommended. There is a need for action to increase the motivation among homeowners to insure their landed properties, which should include awareness raising actions in promoting sustainable behaviour. The paper examined a new subject of why low property insurance patronage of homeowners and provides a broad analysis of homeowners’ reasons for their actions or inactions.