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The 3 Types of Car Insurance in Kenya: Which One Is The Best?

The 3 Types of Car Insurance in Kenya: Which One Is The Best?

Purchasing the right car insurance can be a bit difficult if you lack the relevant information. Car insurance cover is an essential part of the car buying process. Having the right cover prevents you from spending a lot of money repairing your car in case of an accident.   Car accidents are very common on the Kenyan roads. This can be attributed to reckless driving or poor road conditions. However, when buying a car insurance policy, you can not settle on just any cover. You need to conduct in-depth research.   In Kenya, there are three major types of car insurance covers that you can choose from. We have listed them below. Third-party insurance Third-party fire and theft insurance Comprehensive car insurance 1. Third party car insurance This type of policy offers the most basic benefits. It is a plan you can opt for if you are trying to save money or your car will be in long term storage. It barely protects your car from accidental damage but meets the Kenyan Law of ensuring all cars are insured.   You can settle for this cover if you are sure your car will not experience any serious risks. Third-party car insurance caters to the repair bills of the third party in case of an accident.   On the other hand, it does not cover your medical expenses or any repair costs for your car. 2. Third party fire and theft insurance This type of policy offers better coverage for your car. Unlike the third party cover, this particular policy protects your car from everyday risks such as theft and fire.   You may think car fire accidents are very rare. But, on the contrary, they are quite common. It is advisable to insure your car from such incidents. Third-party fire and theft policy cover is also quite affordable. Talk to your policy provider and find out their terms and conditions before settling for this cover. 3. Comprehensive car insurance This is the most recommended cover for a car. This policy protects your car from various risks your car may face. The first benefit of this type of cover is that it protects you from totally losing your car.   Total loss can be as a result of theft, fire or a road accident. This policy also protects your car from theft of car parts. The spare parts business in Kenya is quite lucrative. This makes your car a target for thieves to steal its part and sell it off in the black market. If this happens to you, you can make a claim and the insurance firm can compensate you.   Another major benefit of this type of policy is that you do not have to pay for accidental damage to your car. In case you are involved in an accident, all you have to do is contact your service provider and they will repair it for you.   Additionally, you can enhance the cover to include uncommon risks such as political violence and terror. This ensures your car is protected against all kinds of risks. The comprehensive car insurance is the best as it ensures your car is protected at all times.   Conclusion It is important to understand the different types of insurance policy to make wise decisions. Depending on your car needs and finances, you can settle for either of the three policy types. You also have to remember that it is illegal to drive a car without an insurance cover. The post The 3 Types of Car Insurance in Kenya: Which One Is The Best? appeared first on Cheki Kenya.

BrighterMonday  

How to Stay Motivated While Working from Home

How to Stay Motivated While Working from Home

Working remotely came along with its own benefits. Working without the distractions of long commutes, loud co-workers or uncomfortable office furniture. It must have been fun at the beginning. However, as the world adapts to the new norms, it is essential to come up with new ways to stay motivated while working from home. Failing to find the motivation to work leads to low productivity, especially if unchecked. The likelihood of procrastination is also high as little or no supervision takes place. This is why an individual must ascertain that they are able to work as efficiently at home as they can at the office. Here are a few tips to stay motivated while working from home: 1. Create a Schedule It gets easier to make to-do lists and checking them off when complete. This gives a sense of productivity all through the day. With a daily routine, one gets an organized and up-to date work structure that ensures work is completed within acceptable timeframes. If your work begins at 9.00 am, have a work plan that allows you to complete all ancillary tasks before then. Make sure any pending tasks are pushed into the various breaks you set up for yourself within the day. While some people believe in the art of multitasking, staying efficient with different running tasks is not for everyone, learn your strengths. 2. Have a Work Space It is easier to roll out of bed and pick your laptop to begin the day. As laidback as this seems, it is recommended to have a designated work station. This ensures that a balance is created between work and personal life, building up the necessary motivation to keep going. Working where you sleep can affect your sleep schedules, and ultimately your productivity. If the situation allows, create a designated work space to stay motivated while working from home. 3. Minimize Social Media Use The joys of working from home, among other things, include the ability to constantly be in reach your phone, TV and gaming stations. If you want to stay motivated while working from home, learning when to stop the distractions is essential. If you have to, disable the notifications until your break time, it helps put more focus into the work ahead. It is not about the constant breaks you take to read and reply to the chats, but it draws your concentration off work every time you get that notification. 4. Plan for your Personal Time It is easy to get groped into work and forget occasional breaks. While coming up with daily routines around working remotely, ensure that you have some personal time off work. Just like you would in the office, take occasional breaks to get food, exercise or read. This makes it easier to stay motivated as your mind finds comfort away from work. 5. Invest in Yourself With the new norm, it has been easier to find time to get online, whether for work or personal pleasure. While working home, there is more time to check out ways to improve yourself. A lot of online courses have been made available for employees or jobseekers across the world. A good way to stay motivated while working from home can involve enrolling into new courses to challenge your mind. As there is more time saved from commuting from work to the office, the extra hours can be used for personal growth. In conclusion, so much can be done to stay motivated while working from home. As long as an individual is ready to take on the constant challenges that arise with the changing trends, they can stay alert and productive. If your colleagues or friends are finding it hard to stay motivated, don't forget to share these tips with them! The post How to Stay Motivated While Working from Home appeared first on BrighterMonday Kenya.

BUYRENTKENYA  

10 Common First Time Homebuyer Mistakes to Avoid

10 Common First Time Homebuyer Mistakes to Avoid

The prospect of buying your first home can be both exciting and scary. Understandably— it is one of the biggest financial decisions you’ll make. Due to lack of knowledge, most first time homebuyers make mistakes that cause them to relocate after a short while and the hustle cost of buying a new home all over again. Luckily, with research beforehand, you can avoid these pitfalls. Let's discuss the ten common home-buying mistakes and solutions to equip you for a smooth-sailing experience. Not having clarity on your financial status Overlooking first-time homebuyer programs Shopping for a home before a mortgage Getting a single mortgage quotation Overlooking the neighbourhood Getting into more debt before loan approval Making decisions based on emotions Waiting for the perfect home Skipping home inspection Underestimating the cost of homeownership 1. Being Unclear of Your Current Financial Status You need to understand every little detail of your expenses and savings, to work out how much is available for buying a home.  Otherwise, you commit to purchasing a home beyond your budget. This can lead to foreclosure due to your inability to settle monthly payments. You will also lack money to cover any emergency expenses that come up.  Solution: Have a clear picture of your monthly expenses to assess how much money you can comfortably pay towards a mortgage for a home. Remember to also factor in all your variable outgoing costs like grocery shopping and your monthly saving goals.  As a rule of thumb, your monthly mortgage payments should not be more than 28% of your gross income. This percentage should, however, be lower if you have other debts.  2. Not Looking for First-time Homebuyer Programs There are government programs tailored towards helping low and middle-income earners to buy homes. These can come in the form of a savings scheme where you make monthly contributions towards purchasing a project that is partly funded by the government. Others are subsidised housing development projects where, for instance, a four-bedroom house in Athi-river goes for Kshs 8.85M as opposed to the standard Kshs 15M-20M.  Solution: Look out for state-sponsored options available via your County Government website. An example is the Boma Yangu Project which is an initiative by the Kenyan Government under the “Big Four Agenda” to ensure that Kenyans have access to decent and affordable housing, despite having lower earnings. 3. Shopping for a Home Before a Mortgage House hunting is more fun than evaluating your financial status. It's not a surprise that it's the first thing you’d want to do. Shopping beforehand makes you run the risk of finding a home that you love but cannot afford. This might lead you to buy a home and get into debt. Alternatively, you could be discouraged due to your inability to afford it.  Solution: Focus on your finances first. Have enough for a down payment and closing costs then get a pre-approval letter before seriously shopping for a house.  You can, in the meantime, have a list of what you are looking for in a home. What are the must-haves and deal breakers? This will come in handy once your loan is approved and can now shop for property within the right price range. 4. Getting Just One Mortgage Quote Shopping for a mortgage is like shopping for the house itself: it’s wise to compare several options. Different mortgage providers charge varying fees, like closing costs and loan processing fees. No two lenders are the same. Lack of comparison could have you losing on a better deal.  Additionally, note that your mortgage expenses do not stop at a down payment and monthly repayments. Your financial provider charges several fees to finalise your mortgage processing. These could be around 3-5% of your total purchase price and include:  Stamp duty fee: between 2-4% of the value of your property.  Loan processing fee: approximately 1% of your purchase price. Legal fees: between 1-2% with a minimum fee of Kshs 35,000. Valuation fees: between 1-2% of the purchase price. Solution: Apply for loans with different providers to get a holistic picture into the rates and costs. You can start by visiting several mortgage providers’ websites for an overview of their charges and narrow down to four that you can engage. Most have mortgage calculators such as:  Absa calculator  NIC calculator Standard Chartered You can use the different quotations to negotiate for a lower interest rate as long as it's within the Central Bank of Kenya approved rate of 12-14%.  Afterwards, work out the closing costs for your purchase with the chosen mortgage provider and add them to your budget to assess your true financial position.  5. Fixating on the House Over the Neighbourhood Perfect property is much more than the house itself. You don’t want to be in a home that matches all your needs but has surroundings that aren’t ideal. Imagine having to drive over an hour to get to a good hospital. Or your kids (current or future) having a long commute to school every morning. Solution: Hire an estate agent to help you with the neighbourhood research before settling on a home. They have a vast knowledge of the utilities, schools, zoning regulations and other critical information that will be helpful in deciding whether a neighbourhood is a good fit for you or not.  Also, take various strolls and visit the neighbourhood on your own at different times of the day. This would be a good time to strike a conversation with your potential neighbours and ask any questions, for example how frequent lights go out and the neighbourhood safety.  6. Depleting Your Credit Before Final Loan Approval When applying for financing, your mortgage provider first pre-qualifies you for a loan. This means that they give you an estimate of how much they will lend you based on the information you provided on your finances.  The next step is pre-approval. They verify the information provided and perform the credit checks. If satisfied, you get a pre-approval letter which is an offer (but not a commitment) to lend you a specific amount of money. If your financial position changes, they are well within their right to cancel the transaction within a period of 90 days after pre-approval.  Solution: Do not make large purchases or do anything that will deplete your financial status, e.g. getting into more debt before you get an approval confirmation from your mortgage provider.  You can use the pre-approval letter to start negotiating for lower prices with a potential seller as this gives you a competitive edge. It shows the seller that you are serious; you can secure a mortgage and are more likely to complete the purchase of the home.  7. Making Decisions Based on Emotions Buying your first home is an important step. This is where you will make lasting memories with your family. You might get attached and make decisions based on emotions.  However, remember this is one of the largest financial investments and recovering from financial mistakes could take a significant amount of time. A seller’s agent is well aware of the situation. Their aim is to sell for the highest price possible- and might tap into your emotions to serve their client’s best interest.  Emotional decisions can make you end up buying a home that is way above your budget.  Solution: Have a strict budget for your home and stick to it. Do not get attached to a home that has not yet been transferred to you.  Using an estate agent to represent your interest during the process will also help keep you in check. Discuss your ideal home and what you can afford beforehand and your agent will take care of getting a home that matches your needs matched against your finances.  8. Waiting for the Perfect Home We understand. You are looking for a home that you will live in for a long time if not forever—so you want one that is perfect. However, expecting to find a home that ticks all your boxes can be unrealistic.  Waiting for a perfect home could mean passing up good homes in a great location and great pricing. You will also be limiting your options, which could make the buying process longer than necessary.  As the Kenyan real estate market is also cyclical, you risk waiting until interest rates go higher, or home prices rise.  Solution: Have a list of your must-haves, deal-breakers and compromises. This will help you to be flexible and keep an open mind. Remember that you also can upgrade your home later.  You can get a home that matches most of your needs and make improvements later when you are more comfortable financially.  9. Skipping Home Inspection As a home inspection is not mandatory for your mortgage application, you might be tempted to skip this, being an additional expense. However, it is a crucial step, especially if you are buying a pre-owned home.  A home inspection protects you from buying a home that is not worth the asking price or one with structural issues.  Solution: Hire a professional inspector to pick out faults that you are not able to find, e.g. insulation, plumbing and ventilation issues.  Make sure to attend the home inspection so that you familiarise yourself with what needs to be attended to. You can have the seller do repairs, negotiate for a lower price or altogether decide to move on to a new property. 10. Underestimating the Costs of Homeownership Since you may be moving from a rental or living with family to owning a home, your usual costs could go higher. Additionally, there could be costs that were previously taken care of by your landlord or parents. These include: Higher utility bills Property taxes Homeowners insurance Homeowners association fee Equipment maintenance and repair Outdoor maintenance (e.g. a backyard) Additional furniture to fill more space Solution: Work with an estate agent who specialises in the neighbourhood. He/she will have information on property taxes, insurance estimate cost and homeowners association requirements.  When buying a pre-owned home, it's also wise to ask the seller to give you their utility bills for the last year. This will help you estimate how much it will cost when you move in.  To Conclude Now that you know what mistakes to avoid, here is a detailed guide to walk you through each step of buying your home. Getting buyer's remorse does not have to be part of your journey as a first time home buyer. Be ready to take up the commitment, have a clear understanding of the process and be in a good financial position.  The post 10 Common First Time Homebuyer Mistakes to Avoid appeared first on BuyRentKenya.