Cameroon property insurance: mandatory or optional costs?

Authored by the expert who managed and guided the team behind the Cameroon Property Pack

Everything you need to know before buying real estate is included in our Cameroon Property Pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cameroon. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanVestor, we explore the Cameroonian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Douala, Yaoundé, and Limbe. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

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Cedella Besong 🇨🇲

Co-Founder & CEO, CFB Holding

Cedella Besong is the Co-Founder & CEO of CFB Holding, leading the company's mission to drive social and economic development across Cameroon. With a strong background in global business and marketing, she is deeply committed to projects that create lasting impact—whether in real estate, education, or sustainable agriculture. Cedella believes that investment should go beyond profit, focusing on innovation and community empowerment to build a brighter future for Cameroon.

What types of property insurance are available in Cameroon?

Cameroon's property insurance market offers several distinct coverage types designed for different property ownership situations.

Homeowners insurance covers residential properties including houses, condos, villas, and apartments. This comprehensive coverage typically includes protection against fire, theft, burglary, vandalism, and water damage. Commercial property insurance serves businesses and investors with commercial buildings, offering similar protections but with higher coverage limits and business-specific risks.

Renters or contents insurance protects tenants' personal belongings and provides liability coverage without covering the building structure itself. This option is particularly popular among expatriates and young professionals in Douala and Yaoundé who rent apartments.

Optional riders and endorsements allow property owners to customize their coverage based on specific risks. Natural disaster riders cover floods and mudslides, which are common concerns in certain regions of Cameroon. Valuables riders protect high-value items like jewelry, art, or electronics that exceed standard policy limits.

It's something we develop in our Cameroon property pack.

Is property insurance mandatory for homeowners in Cameroon?

Property insurance is not legally mandatory for homeowners in Cameroon under current national legislation.

As of September 2025, the Cameroonian government does not require private homeowners to carry property insurance as a legal obligation. This differs from some countries where homeowners insurance is compulsory by law. However, the situation changes significantly if you're financing your property purchase through a mortgage.

Mortgage lenders in Cameroon typically require borrowers to maintain property insurance as a condition of the loan agreement. Banks and financial institutions mandate this coverage to protect their investment in case of property damage or destruction. The insurance requirement usually remains in effect until the mortgage is fully paid off.

Foreign property investors should note that while insurance isn't legally required, it's considered essential due diligence. Properties in urban areas like Douala and Yaoundé face higher risks of theft and vandalism, making insurance particularly valuable for protecting your investment.

Commercial property owners may face different requirements depending on their business licenses and local municipal regulations, which can mandate certain types of coverage for specific commercial activities.

What are the specific regulations regarding property insurance in Cameroon?

Property insurance in Cameroon is regulated under the CIMA Code, a regional framework governing insurance across West and Central African countries.

The Conference Interafricaine des Marchés d'Assurances (CIMA) Code establishes uniform insurance regulations across 14 member countries, including Cameroon. This framework ensures standardized consumer protection, solvency requirements, and operational standards for insurance companies operating in the region.

At the national level, the Ministry of Finance through the Directorate General of Treasury, Financial and Monetary Cooperation (DGTCFM) oversees insurance regulation implementation. This body ensures compliance with CIMA standards and addresses country-specific insurance matters.

Insurers must maintain specific capital reserves, provide clear policy terms disclosure, and follow strict claims processing protocols. Consumer protection laws safeguard policyholders against unfair policy denials, misleading clauses, and discriminatory practices. Insurance companies must obtain proper licensing and undergo regular financial audits to maintain their operating permits.

The regulatory framework also mandates that insurance contracts clearly specify covered perils, exclusions, deductibles, and claims procedures in language accessible to policyholders. This transparency requirement helps prevent disputes and ensures informed decision-making by property owners.

Are there any legal penalties for not having property insurance in Cameroon?

There are no criminal penalties or legal sanctions for private homeowners who choose not to carry property insurance in Cameroon.

The Cameroonian legal system does not impose fines, criminal charges, or other legal consequences on property owners who operate without insurance coverage. This voluntary approach aligns with the country's general policy of allowing market forces to drive insurance adoption rather than legal mandates.

However, property owners may face contractual penalties if they're required to maintain insurance under specific agreements. Mortgage lenders can declare loan defaults if borrowers fail to maintain required insurance coverage, potentially leading to foreclosure proceedings. Commercial lease agreements may also include insurance requirements with penalty clauses for non-compliance.

Property owners without insurance bear full financial responsibility for any damages, losses, or liability claims. In a legal dispute involving property damage, uninsured owners must pay all costs from their personal resources, which can be financially devastating for major incidents like fires or structural damage.

Local municipalities may impose indirect consequences for uninsured properties involved in incidents that affect public safety or neighboring properties, though these are administrative rather than criminal matters.

What factors influence the cost of property insurance in Cameroon?

Property insurance premiums in Cameroon depend on multiple risk assessment factors that insurers evaluate during underwriting.

Property value represents the primary cost determinant, as higher-value properties require larger coverage limits and correspondingly higher premiums. Insurers typically calculate premiums as a percentage of the total insured value, ranging from 0.25% to 1% annually for standard residential coverage.

Location significantly impacts premium calculations due to varying risk exposures across Cameroon's regions. Urban properties in Douala and Yaoundé face higher theft and vandalism risks but benefit from better emergency services access. Rural properties may have lower crime rates but face challenges with emergency response times and natural disaster exposure.

Building construction type and age affect premium calculations, with modern concrete structures typically receiving lower rates than older wooden buildings. Properties with security features like alarm systems, fencing, and security guards qualify for premium discounts. The neighborhood's crime statistics and historical claims data also influence pricing decisions.

Coverage scope and deductible levels directly impact costs, with comprehensive policies including natural disaster coverage commanding higher premiums than basic fire and theft protection. Previous claims history affects renewal rates, with claim-free properties often receiving loyalty discounts from insurers.

How much does property insurance typically cost for residential properties in Cameroon?

Residential property insurance premiums in Cameroon typically range from 0.25% to 1% of the property's insured value annually for standard coverage.

For a concrete example, an urban residential property valued at 50,000,000 XAF (approximately $80,000 USD) would incur annual premiums between 125,000 and 500,000 XAF ($200 to $800 USD). The wide range reflects different coverage levels, insurer pricing, and specific property risk factors.

Basic fire and theft coverage represents the lower end of the pricing spectrum, typically costing 0.25% to 0.5% of property value annually. Comprehensive policies including water damage, vandalism, and liability protection generally cost 0.5% to 0.75% of property value. Premium policies with natural disaster coverage and enhanced liability limits can reach 1% or higher of property value.

Urban properties in high-crime areas or flood-prone zones may face premiums above the standard range due to elevated risk exposures. Properties with excellent security features, low-crime locations, and modern construction often qualify for rates at the lower end of the pricing spectrum.

It's something we develop in our Cameroon property pack.

Are there different insurance rates for urban versus rural properties in Cameroon?

Yes, insurance rates vary significantly between urban and rural properties in Cameroon due to different risk profiles and service accessibility.

Urban properties in major cities like Douala, Yaoundé, and Limbe generally face higher premiums due to increased theft, burglary, and vandalism risks. However, urban areas benefit from better emergency services, faster claims response times, and more competitive insurance markets with multiple provider options.

Rural properties typically enjoy lower crime-related risks, resulting in reduced premiums for theft and burglary coverage. However, rural locations may face higher rates for specific risks like limited emergency service access, poor road conditions affecting claims adjustment, and potential exposure to agricultural-related hazards.

Natural disaster exposure varies by specific location rather than urban-rural classification. Some rural areas face higher flood risks during rainy seasons, while certain urban areas may have better drainage infrastructure. Insurers assess each location individually for natural disaster coverage pricing.

Insurance provider availability differs significantly between urban and rural markets. Urban areas enjoy competitive pricing from multiple insurers, while rural properties may have fewer options, potentially resulting in less competitive pricing. Remote rural properties might face accessibility surcharges for claims investigations and repairs.

What is covered under the standard property insurance policy in Cameroon?

Standard property insurance policies in Cameroon typically cover five primary perils: fire, theft, burglary, vandalism, and water damage.

Coverage Type	What's Included	Common Exclusions
Fire Damage	Structure and contents damage from fires, explosions, lightning strikes	Arson by policyholder, electrical fires from poor maintenance
Theft & Burglary	Stolen property, forced entry damage, robbery incidents	Items left unsecured, theft by residents, mysterious disappearance
Vandalism	Malicious property damage, graffiti, broken windows	Damage during political unrest, war, civil commotion
Water Damage	Burst pipes, appliance leaks, accidental water discharge	Flood damage, gradual leaks, poor maintenance issues
Liability Protection	Third-party injury claims, property damage to others	Intentional acts, business-related liability, professional errors

Liability protection covers third-party injury claims and property damage that occur on your premises. This coverage is crucial for homeowners who host guests or employ domestic staff, as it protects against potential lawsuits from accidents on the property.

Additional living expenses coverage helps pay for temporary accommodation if your property becomes uninhabitable due to covered damage. This benefit is particularly valuable in urban areas where hotel costs can be substantial during extended repair periods.

Personal property coverage extends to belongings within the home, including furniture, electronics, clothing, and other personal items. However, high-value items like jewelry, art, or electronics may have coverage limits requiring additional riders for full protection.

Are natural disasters, like flooding or earthquakes, covered by property insurance in Cameroon?

Natural disaster coverage is not included in standard property insurance policies and requires separate riders or specialized policies in Cameroon.

Flood coverage represents the most commonly requested natural disaster protection due to Cameroon's tropical climate and seasonal flooding risks. Insurers offer flood riders that cover damage from surface water, heavy rainfall, and river overflow incidents. However, coverage typically excludes damage from poor drainage or gradual water infiltration.

Mudslide and landslide coverage is available in certain regions prone to soil erosion, particularly in mountainous areas and steep terrain locations. This coverage protects against property damage from soil movement and geological instability, which can be significant concerns during heavy rainy seasons.

Earthquake coverage is less commonly available and usually requires specialized policies rather than simple riders. Cameroon's relatively low seismic activity means earthquake insurance is not typically considered essential, but some insurers offer coverage for comprehensive protection.

Storm and wind damage coverage varies by insurer and policy type. Some providers include wind damage in standard policies, while others require additional coverage for tropical storm and severe weather protection. Given Cameroon's exposure to seasonal storms, this coverage is worth considering for properties in exposed locations.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cameroon versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What is the claims process for property insurance in Cameroon?

The claims process in Cameroon follows a structured procedure that requires prompt notification and thorough documentation to ensure successful claim resolution.

Immediate notification represents the critical first step, with most insurers requiring claim reports within 48 hours of discovering damage or loss. Delays in notification can result in claim complications or potential denials, making prompt contact with your insurer essential for protecting your coverage rights.

Documentation requirements include completing formal claim forms, providing proof of property ownership, submitting incident reports from police or fire services when applicable, and presenting evidence of property value through receipts, appraisals, or photographs. The quality and completeness of documentation significantly affects claim processing speed and approval likelihood.

Insurance company investigation follows documentation submission, typically involving property inspections, expert assessments, and damage evaluations. Investigators may interview witnesses, review security footage, and consult with local authorities to verify claim details and determine coverage applicability.

Claim resolution timelines vary based on damage complexity and investigation requirements, with simple claims potentially resolving within weeks while complex cases may take several months. Approved claims result in compensation payments according to policy terms, while disputed claims may require mediation or legal resolution through Cameroon's court system.

Are there specific insurance providers recommended for properties in Cameroon?

Several established insurance companies offer competitive property insurance products in Cameroon's market, each with distinct strengths and specializations.

1. **Zenithe Insurance** - Offers comprehensive residential and commercial property coverage with strong customer service reputation in urban markets 2. **Chanas Assurances** - Provides competitive rates for standard homeowners insurance with good coverage for theft and fire protection 3. **AFRIGROUPE INSURANCE SA** - Specializes in customized policies for foreign investors and expatriate property owners 4. **Olea Insurance Solutions** - Known for flexible policy terms and natural disaster coverage options 5. **ASCOMA CAMEROUN** - Offers competitive pricing for rural properties and agricultural-related coverage 6. **Beneficial General Insurance S.A.** - Provides comprehensive liability coverage and business property protection

Multinational insurance firms operating in Cameroon often provide superior service for foreign property investors, offering policies in multiple languages and international claims support. These providers typically have better understanding of expatriate needs and cross-border property ownership complications.

Insurance brokers can provide valuable assistance in comparing policies from multiple providers, negotiating terms, and managing claims processes. Reputable brokers often have established relationships with insurers that can result in better coverage terms and competitive pricing for their clients.

When selecting an insurer, consider factors beyond premium costs, including claims settlement reputation, financial stability, customer service quality, and coverage flexibility. Local market knowledge and response time for claims processing should also influence your provider selection decision.

Can property insurance in Cameroon be customized based on the property's location or value?

Yes, property insurance policies in Cameroon can be extensively customized to address specific location risks, property values, and individual coverage needs.

Location-based customization allows insurers to adjust coverage for specific regional risks. Properties in flood-prone areas can add comprehensive water damage protection, while homes in high-crime neighborhoods can increase theft and burglary coverage limits. Coastal properties may require enhanced wind and storm protection, while rural properties might need coverage for agricultural equipment or outbuildings.

Value-based customization ensures appropriate coverage limits match property worth and replacement costs. High-value properties can increase dwelling coverage limits, add valuable items schedules for expensive possessions, and include increased liability protection commensurate with asset exposure. Lower-value properties can opt for basic coverage levels to minimize premium costs while maintaining essential protection.

Tenant-type customization addresses different occupancy situations, with separate policy options for owner-occupied homes, rental properties, and vacation homes. Rental property policies include landlord-specific protections like loss of rental income coverage and tenant-caused damage protection.

Risk appetite customization allows property owners to balance coverage comprehensiveness with premium costs through deductible selection, coverage limit adjustments, and optional protection riders. Conservative investors may choose comprehensive coverage with low deductibles, while cost-conscious buyers might accept higher deductibles for reduced premiums.

It's something we develop in our Cameroon property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Elitis Cameroun Home Insurance
2. Lawzana Property Insurance Lawyers Cameroon
3. CPA Cameroun Insurance Services
4. 6W Research Cameroon Property Insurance Market
5. Law Gratis Insurance Laws Cameroon
6. Kinsmen Advocates Insurance Contract Cameroon
7. CIMA Afrique Regulatory Framework
8. Statista Cameroon Property Insurance Market
9. Halle Law Foreign Property Investment Guide
10. Société Générale Cameroon Home Insurance