What is home insurance?
Home insurance is also called as homeowner’s insurance. It is an insurance that combines various personal insurance protection that includes losses that occur in a person’s house, loss of use, content, loss of personal possessions, etc.
Home insurance will cover the damage done to the property or if someone is injured on the property. Insurance helps the owner to cope with the financial consequences.
Why home insurance for tenants?
More than 70% of the UAE residents prefer to rent a place and the renters have a lot of bills and fees to take care of and they most important thing they overlook is home contents insurance.
If you have rented a house in the UAE, it is important that you are insuring your home contents and personal possessions. Home content insurance will cover for things such as appliances, fine art, and furniture. Personal possession insurance on the other hand will cover for valuables such as jewellery, electronics, etc. If the item has been damaged by flood, vandalism, theft, or fire, the insurance will either repair or replace it.
A tenant can buy a home contents and personal possessions insurance in the UAE. But, it is the landlord’s responsibility to have an active building insurance.
What does home contents and personal possessions insurance cover in the UAE?
When you take a home insurance, you get cover for the following items:
- Lost wallet: If you have lost your wallet, the insurance will cover for it. It will also include the cost for reapplying for the personal papers lost and the payment cards that were in the wallet.
- Key replacement: If your keys have been lost, damaged, or stolen, the home insurance will pay for the locks and keys. If you need this to be covered, you must check the insurance document to ensure that the key replacement is paid for by the home insurance provider.
- Mobile phones: Mobile phones are the most stolen items. Most insurance providers cover the lost devices. It is wise to check for an insurance that provides cover for mobile phones. The cover can be extended to outside the premises as well.
- Moving to a new place: When you are moving to a new place, there is a good chance that your appliances can get damaged. Most home insurance providers in the UAE cover the loss or damage incurred to the contents of your house when you are shifting. If you think you will be moving out in the near future, this is a feature that you must look for in your home insurance.
- Frozen food: Covering for frozen food is not something one would consider while taking a home insurance, but there might be a lot of frozen food stocked for an event. Thus, this feature happens to be a standard in most home insurance policies.
You may be wondering how much premium you will have to pay for the home insurance, following is an illustrative annual premiums that a tenant has to pay in Dubai:
|Number of bedrooms||Location||Value of the house||Insurance||Insurance per year|
|1||Bur Dubai||AED150,000||Contents and possession||AED800 – AED1,200|
|2||Dubai Marina||AED200,000||Contents and possession||AED950 – AED1,350|
|2||Jumeirah Village||AED4,000,000||Building, contents, and possession||AED3,000 – AED5,000|
|5+||Jumeirah Islands||AED10,000,000||Building, contents, and possession||AED9,000 – AED12,000|
Banks offering home insurance in UAE
There are over 50 licensed insurance companies in the UAE and most of them offer home insurance to individuals. You will have to read through the policy document before you sign up to ensure that you know what you are buying. You must check the maximum benefits available and the documents you are required to file for the claim.
Following are the banks that offer home insurance in the UAE:
- Emirates NBD:
Home insurance offered by Emirates NDB protects your home against, natural calamities, theft, fire, and accidental loss or damage. Up to AED1 million cover is offered. Money insurance cover for up to AED1,000 is offered. Free replacement and installation cost of up to AED500 for external door locks. There is free cover for temporary removals. You get cover when you are on a holiday provided you don’t leave your home empty for over 60 days.
Axa covers for tenant’s liability. It offers cover for unexpected events and natural calamities, new for old, alternative accommodation, legal liability, while you are on a holiday, frozen food, stolen keys, visitor’s personal effects, contents in open, household removals, etc. There is an accidental coverage offered for accidental damage, domestic helpers, and personal belongings. The policy allows you to decide the level of coverage.
You get protection against explosion, fire, earthquake, flood, storm, lightning, civil commotion, riot, vandals, malicious person, etc. You get up to AED20,000 cover for personal belongings, up to AED1,000 cover for key replacement, up to AED60,000 for loss of rent and alternative accommodation, and up to AED60,000 cover for contents temporarily removed.
When you are buying a home insurance, you must have a list of all the things that you need cover for and choose a home insurance that fits your need. You must read through the document carefully and make yourself aware of the exclusions and the maximum limits set for each claim.
Additional Reading: How to choose right Home Insurance