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

Masiliso Akayombokwa and Daniel L. Mpolomoka
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Masiliso Akayombokwa: School of Business, University of Zambia
Daniel L. Mpolomoka: Unicaf University Zambia

African Journal of Commercial Studies, 2026, vol. 7, issue 3

Abstract: This study examined household experiences and perceptions regarding participation in house insurance schemes in Mahopo Compound, Lusaka District, Zambia. The study aimed to explore how households understand insurance participation, assess how risk perceptions influence decision-making, and evaluate how economic circumstances shape participation in house insurance schemes. A descriptive research design was adopted, and data were collected from a purposive sample of 24 households drawn from a population of 65 using self-administered interview guides. Data were analyzed thematically to identify recurring patterns and shared meanings. The findings revealed that financial literacy plays a critical role in shaping awareness, understanding, and confidence in insurance participation, with more informed households demonstrating greater willingness to engage. Risk perception was also a key determinant, as households with prior exposure to property loss perceived higher vulnerability and showed greater inclination toward insurance uptake, while others underestimated risks and exhibited mistrust toward insurers. Income constraints further influenced participation decisions, with low-income households prioritizing immediate consumption needs over insurance, while middle-income households cited affordability challenges and higher-income households showed greater adoption willingness. The study concludes that insurance participation is shaped by the interplay of financial literacy, perceived risk, and income realities. It recommends enhanced financial literacy programs, targeted awareness campaigns, improved transparency in claims processes, and the introduction of flexible and affordable micro-insurance products to increase participation.

Keywords: House Insurance Scheme; Household Participation; Financial Literacy; Risk Perception; Income Realities (search for similar items in EconPapers)
JEL-codes: D14 G22 I32 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-82

DOI: 10.59413/ajocs/v7.i3.11

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