Household Experiences and Perceptions of Participation in House Insurance Schemes: A Case Study of Mahopo Compound, Lusaka Province, Zambia

Abstract

This study investigated household experiences and perceptions regarding participation in house insurance schemes in Mahopo Compound, Lusaka District, Zambia. The objective of the study was to explore how households in Mahopo Compound understand participation in house insurance schemes, to describe how households' risk perceptions shape decisions about participating in house insurance schemes, and to explore how household economic circumstances are experienced in relation to participation in house insurance schemes. The study employed a descriptive research design. Data were collected from a purposive sample of 24 households drawn from a population of 65 using self-administered interview guides. Data was analyzed thematically to identify recurring patterns and shared meanings. The findings revealed that financial literacy played a pivotal role in shaping both awareness and confidence in insurance participation, as households with higher education or prior exposure to financial training demonstrated better understanding of insurance benefits and greater confidence in making financial decisions. Risk perception was equally critical in insurance participation, as households who had personally experienced property loss or witnessed similar events in their community perceived themselves as more vulnerable to risk and were more inclined to consider insurance; meanwhile, the younger and newer households often downplayed risks, and at the same time, mistrust in insurers weakened coping appraisals. Income realities were also critical in insurance participation decisions, as low-income households consistently prioritized basic needs over long-term financial protection, while middle-income households expressed interest but cited affordability and payment flexibility as barriers, and higher-income households were more willing to adopt insurance, underscoring the enabling role of financial stability. The study recommends strengthening community-based financial literacy initiatives; awareness campaigns in urban residential compounds that emphasize the real risks households face, such as fire, theft, and flooding; improving transparency in claims processes; and introducing flexible premium structures, including micro-insurance models, to enhance participation.