What is Home Insurance
Home insurance is a financial coverage policy that protects the policyholder when the property is damaged. The damage usually refers to natural disasters including flooding, rain, hail, earthquakes, and fire accidents. It is recommended to buy house insurance in the UAE as it provides financial support to the policyholders. Aside from financial support, it also secures holders from legal issues and third-party liabilities. Moreover, the insurance remains valid even if the holder is traveling, providing peace of mind.
Types of Home Insurance
Following are the different types of home insurance offered in the UAE:
- Building Insurance: It covers the building walls, ceiling, and other elements. Building insurance usually covers damages caused by natural calamities including fire, storms, earthquakes, and flooding.
- Personal Belonging Insurance: This type covers assets inside the home like jewelry, electronics, rugs, and carpets. Some providers also include furniture and appliances.
- Owner and Occupiers’ Liability Insurance: Covers all damage claims against the policyholder and their family members.
- Tenant’s Liability Insurance: Protects tenants from financial debts due to damages caused by their negligence.
What Is Covered by Home Insurance
The inclusion and exclusion criteria of home insurance vary according to the type of plan and insurance provider. Here are some common inclusions and exclusions:
Inclusions:
- Content coverage while moving home within the UAE
- Alternative accommodation
- Property coverage when the policyholder is traveling
- Damages caused by theft, burglary, or fire
Exclusions:
- Damages caused by war
- Loss due to wear and tear
- Accidents caused by radioactive elements
- Damages caused by mechanically propelled vehicles
Steps to Buy Home Insurance
Here are all the steps to buy home insurance in the UAE:
Step 1: Assess Your Requirements Start by evaluating your requirements for home insurance. Consider the size of your home, the valuable assets you possess, and the risk of damage. All of these factors will aid in understanding the type of insurance required.
Step 2: Search for Insurance Providers Shortlist at least 10 to 15 reputable home insurance providers in the Emirates. Look for client satisfaction levels, financial stability, and the range of coverage options offered by the company.
Step 3: Get the Quote Ask for quotes from your shortlisted insurance providers. Compare the quotes, and consider inclusion and exclusion criteria, deductibles, coverage limits, and additional benefits.
Step 4: Understand Terms and Conditions Discuss the policy in detail with the insurance provider and seek professional assistance if needed.
Step 5: Complete Paperwork Submit all necessary documents and read the contract carefully before signing it. Make sure to understand all clauses and conditions.
Step 6: Finalise the Process Finalize the purchase by signing the documents. Ensure timely payment of the premium to avail the benefits offered by the insurance provider.
Things to Consider When Buying Home Insurance
- Consider Property Value: Make sure the property’s value is less than the insurance premium. Conduct a property survey to identify potential issues.
- Understand Policy: Seek professional assistance to navigate the insurance policy.
- Prefer Premium and Coverage: Balance the premium and the coverage offered by the plan.
- Adding Products in the Coverage: Discuss with the provider about covering products bought after signing the insurance plan documents.
Cost of Buying Home Insurance
The cost of buying home insurance in the UAE depends on multiple factors including the type of plan, inclusions, add-ons, and others. The premium is roughly around 0.5% per year of the total coverage value, and for building-only home insurance, the cost is around 0.1%.
FAQs
What are the documents required for buying home insurance in the UAE?
- Emirates ID/valid passport
- Proof of ownership
- Property plan
- Valuation report
- Property photographs
Is home insurance mandatory in the UAE? No, home insurance is not mandatory but it is recommended to avoid financial debts in case of an accident.
Will home insurance cover if my pet gets injured in an accident? The basic insurance plan does not cover injuries to pets during an accident, but some companies offer this coverage as an add-on.
Home insurance allows owners to secure their property from any kind of damage. Although the chances of accidental damages are rare due to advanced safety systems embedded by authorities, it’s a wise decision to invest in home insurance for added security. Before buying a property, ensure your income meets the minimum criteria set by the government. Here’s how much you should earn to buy property in Dubai.
