The importance of home insurance in UAE

Home insurance isn't expensive, but mishaps caused by natural disasters, accidents, or malicious intent can be! Despite the fact that there are compelling reasons to purchase home insurance, people in the UAE frequently overlook it.

 

If you are one of those expats who believe that you don't need home insurance because you live in a rented space, then you must reconsider it. Because even if your apartment or villa is owned by the landlord, the contents inside your home are your responsibility and should be insured. Hence buying home insurance in the UAE is worth every penny since it can save you from unforeseen financial losses.

 

You can protect your homes with building cover (for apartments and villas against damage and breakage of fixed and sanitary fixtures and more), contents cover (including loss or damage to household goods such as furniture, appliances, TV, carpets, and so on), and personal belongings cover for a relatively small annual fee (including items like your jewelry, mobile phones, laptops, watches, portable equipment, etc).

 

Despite the UAE being known as a safe country, incidents such as fire and theft can occur. Besides, a house fire or an AC leak can cost thousands of dirhams to repair. But with home insurance or contents insurance, you can protect all of your belongings and potentially save hundreds and thousands of dirhams. It is highly recommended to keep your most valuable assets secure at an affordable cost. For example, you can pay only 200 AED per year for a 60,000 AED home content cover plus a 5,000 AED personal belongings cover. Of course, these numbers may vary depending on the valuables you insure and the location of your home, but it is worth investigating further.

 

In addition, liability insurance protection covers legal expenditures, depending on your policy. For example, if you are found legally responsible for property damage or personal injury to others, liability insurance will protect you from financial losses. Damages caused by your family members are also covered under this policy. And the same concept applies to the tenant's liability coverage, in which the policyholder is a tenant, who is covered for expenses incurred as a result of damages to the landlord's property.

 

Furthermore, the type of home insurance you should purchase is determined by your ownership status. So, whether you own a high-rise tower, a villa, or a low-rise flat, you should purchase building insurance to protect your investment from structural damage. If you live in the property (as an owner or as a tenant), you should purchase home contents and personal belongings insurance to protect your belongings from loss or damage. Another fact you should be aware of is that landlords in the UAE are required by law to provide property coverage when their properties are mortgaged.

 

Before purchasing home insurance or contents insurance you should ensure to have the appropriate amount of coverage for your household. That means receiving the highest level of protection at the lowest possible cost. Coverages come with limits - the maximum amount of money that an insurer will pay toward a covered claim - so keep that in mind. So when you select your coverage limits, make sure to consider the potential cost of replacing your belongings or rebuilding your home.

 

Carefully read all of the terms and conditions to determine which items and types of damage the policy covers. Many coverages have deductibles, which is the amount you must pay before your insurance benefits kick in to help reimburse you for a covered claim.  Don't forget to also read the fine print to fully understand when the insurer may deny your claim if your negligence caused the damage.

 

Since accidents can strike at any time, we recommend purchasing property insurance before it’s too late. At BanqMart, we can help you choose the right option, whether you rent a house or own a five-bedroom villa in Dubai.