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Home Insurance: A comprehensive guide for 2020

Written by Huma

Home insurance in this 2020 can be a dynamic change in your life. Getting aware of its terms & conditions and its coverage package around the UAE can assist you to be secure in a difficult time.

It doesn’t matter if you are a tenant or a homeowner when it comes to getting home insurance. As a homeowner, you obviously need to get the house insurance but as a tenant, it is also important.

The reason for this is that home insurance doesn’t cover the house only. It extends to the family’s possessions as well. Although some people are still hesitant about getting home insurance, most people have started to realize its necessity.

Therefore, it is important that you understand and know all about home insurance.

Home insurance covers all the aspects of loss to you and your possessions in case of accidents.

Houses are most vulnerable when the occupants are gone for vacations. To keep your house and your belongings safe while enjoying a worry-free vacation, you should get a home insurance.

Most people return from vacations to find that their house had been broken into.

Similarly, they get news on the vacation that due to fire, their house burned down.

In order to save yourself from such incidents, get home insurance if you haven’t already.

We have provided a complete guide for you that will explain all aspects of home insurance in UAE which you need to understand in 2020.

Home Insurance In UAE

It is property insurance that is provided when an individual’s property and belongings are damaged or harmed. Hence, not only the material things but home insurance also covers the damages to you or your family members in such accidents.

1. Homeowner’s Insurance

Homeowners’ insurance is a common procedure while buying a property in the UAE. Normally, the basic insurance covers only the house itself and its physical property such as walls, ceilings, and pipes.

Thus, you can get comprehensive home insurance, which can provide coverage for your home contents.

For an instant as household goods along with other items including furniture and fixtures, valuables, electronics, and clothing.

Thus, these are the items that are present inside your property.

2. Renter’s Insurance

A renters’ insurance is also called tenants’ insurance. It is a type of insurance policy that will cover the personal property of tenants against unforeseen events such as vandalism, theft, and fire.

  1. Even if your landlord has got the home insurance, it
    is necessary that as a tenant you get the home insurance for your belongings.
  2. This is due to the fact that home insurance by the
    landlord will cover the physical structure of the house.

Therefore, Renters’ insurance will provide coverage for your home contents. It is considerably less expensive than a homeowner’s insurance. 

3. Need for Home Insurance!

Most people in the UAE think that natural calamities happen rarely in the country. Dubai is considered one of the safest cities in the world therefore there is no issue of security in the city.

Pic Credit: Service Market

Due to these reasons, people don’t realize that home insurance is needed. Many people have not made it their priority to get home insurance.

Unforeseen events such as fires, natural disasters, burglaries, along with many other disastrous incidents may happen that will affect your property along with your belongings.

Therefore, if you own an apartment you’re currently living in, having comprehensive insurance is advisable as it covers not only the physical property but also your home contents.

Similarly, if you’re renting a property in UAE getting an insurance policy that covers your home contents is very much recommended.

  1. Renters insurance will cover your loss of personal
    belongings.
  2. This means that damages to your home belongings will
    be replaced or repaired if they are completely destroyed.
  3. It is wise to prepare for such incidents because along
    with the emotional trauma, these can cause huge financial loss as well.

You have to make a choice about which policy is suitable for you by considering many factors.

Firstly, identify the type of coverage you need. Then identify the insurance companies that will provide this type of coverage and lastly based on your budget, get the best policy.

Thus, there are certain questions that you should ask the policy providers or yourself before making the decision.

FAQS

1. What are the covered items?

A good policy will cover the losses to furniture, clothing, electronics, and other valuables that you have kept in your home.

2. What type of risks does the policy cover?

Your policy should cover most of the risks including theft, fire, natural disasters, and floods. It should include accidents and unforeseen events.

3. What will happen if you or someone else get hurt or injured inside the property?

Your policy should not be limited to the physical belongings or the structure. It should also include the damages to you or your family members inside the house. Due to such incidents, any damage to you or your family members must be covered by the policy.

4. Is the policy sufficient for anyone including visitors and roommates?

If you have got roommates inside the house, you need to know beforehand if your policy will cover them as well.

5. Does the policy cover the items that are not inside the home?

Most insurance policies cover the losses of the household items that are inside your house at the time of the accident. However, it is necessary that you get all the information regarding the household items and their coverage. You need to understand how these items will be covered.

6. How much do I need to pay?

Your budget and the price of insurance policy plays an important role in making the right decision. You will obviously go for the policy that is within your budget. However many people make a mistake that they don’t ask for the cost before making the decision. It is very important that you get to know the price and cost before making the decision.

7. What about the insurance provider’s reputation and experience?

Finally, when you have considered the price and coverage of the policy, it is better that you get to know the reputation and experience of the insurance company. You should always go for a company that has a good reputation and have extensive experience.

These factors should be considered when you are searching for the right policy for yourself.

4. Be aware! while you are away on your vacation

After explaining the factors that you should consider while getting the insurance policy, let’s get in details of why it is important to get insurance before going on a vacation.

Pic Credit: Service market

This will give you an idea of why we are focusing so much on the vacation aspect.

  1. As you are not home, your house and personal belongings are without supervision.
  2. This means that you will not be able to stop accidents from happening. Similarly, chances of theft or robbery are huge when you are not home.
  3. Although people think that natural calamities are not common in UAE, many incidents do happen.
  4. Water damage is very common in the UAE. This can be caused by flooding or leaking pipes. Of course, if you are at home, you will be able to control it in time. But as you are away, these accidents will happen.
  5. Fire is another common cause of damage to the UAE. These incidents can lead to major damage to your property and personal belongings.

Therefore, the home insurance coverage package allows you to be safe in unforeseen events.

5. Not always the Landlord’s responsibility

People who are living as tenants think that home insurance by the landlord will also cover their losses. This is not true.

The home insurance by the landlord will only cover the damage to his or her property meaning the house.

Therefore, it is not the landlord’s responsibility to get home insurance for you. You are responsible for getting the home insurance policy yourself.

  1. It is important for even as a tenant to get the home insurance because in case any accident happens, your belongings are not protected.
  2. If in a fire, your belongings are damaged along with the house, the landlord’s home insurance will not cover your belongings.
  3. Due to these reasons, insurance for home content is important to get. Some of the accidents are so major, they can make the property that you are living in, unfit.
  4. In such situations, if you have home insurance, you will be able to get an alternate accommodation till repairs are being done to your property.
  5. Similarly, these policies also pay for the rent that you have lost.

Thus, keeping all this in mind, you should realize that it is indeed your responsibility to get home insurance.

6. The average cost of getting a Home Insurance

The cost of getting home insurance is not very expensive as most people think. It will probably cost you around Dh 200 annually.

This cost can, however, differ from policy to policy and providers to providers.

Thus, the high or low cost of any policy depends on the coverage that your chosen policy provides.

7. Misconceptions are attached to Home Insurance

There are many myths and misconceptions regarding home insurance. People think that as they have purchased a home insurance policy, all the contents will be covered.

You need to understand that every policy has different coverage. If you have bought a policy that will cover all your home contents along with the house, only then you can believe that all contents will be covered. Hence, there are many limitations and restrictions on policies. Understanding them is very important.

8. Before signing for a Policy Keep Certain Facts In Mind

In order to save you from buying the wrong policy, we would advise that understanding the policy itself is very important.

 Most of the insurance providers will only cover the household items that are inside your house.

They define the contents as valuables, clothes, electronics, furniture, etc. Home contents insurance will provide you the coverage in the case of fire, floods, explosions, earthquakes, etc.

However, you can customize the policy in order to make your policy extensive.

9. Home Insurance Contents

You have an option to customize your standard home insurance policy. You can have personal possessions cover along with the basic home insurance policy.

  1. This insurance policy will cover the loss to the belongings that you can take outside the house as well.
  2.  As a standard policy only covers the belonging that is in your home, this will help you in the financial loss of such belongings as well.
  3. You have to pay an extra premium but an advantage of this is that your personal belongings will be insured.
  4. These belongings include watches, clothes, personal gadgets and laptops, bags, and other valuable items.
  5. When you have specified these items in Personal Possessions Cover, you will get insurance against accidents such as theft, loss or damages.
  6. There are some items such as jewelry items that are very expensive.
  7. For such items, you will be required to provide extra details such as their value and receipts that will prove that you have bought it.

Thus, all these items can be insured under personal possessions cover.

10. Avoid your Claim from being invalid

In many cases, your claim against the coverage can be rejected. The insurance provides have certain rules on the basis of which they can reject the claim. There are some circumstances that are applied to all insurance policies. These circumstances are;

  1. You have left the house unoccupied for more than 60 days in a row. This is a common time period.
  2. If you have neglected your home maintenance. Any accident caused due to this will not be covered.
  3. If you provide false facts regarding the accident
  4. Not having security at your house in order to protect it from theft.

Thus, you can avoid all these circumstances if you are careful enough while reading the conditions mentioned in your policy.

Conclusion

Getting a right home insurance policy is important because it will help you in the financial loss. The insurance policy doesn’t stop incidents from happening but will not let you bear all the loss.


Originally published Jan 07, 2020 13:35:29 PM, updated Jan 11, 2020

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