- What is Home Insurance
- Types of Home Insurance
- What Is Covered by Home Insurance
- Steps to Buy Home Insurance
- Things to Consider When Buying Home Insurance
- Cost of Buying Home Insurance
- FAQs
Purchasing property in the UAE is achieving a bigger milestone in life. However, buying a property is only halfway through, there are other essential processes too after it. The first one is to buy home insurance in the UAE. Home insurance safeguards owners and even tenants from financial dents in case of any damage caused to the property. Though, navigating through the complex landscape of home insurance and opting for an ideal one can be daunting for many.
For your convenience, here we have elaborated on the processes and steps of buying home insurance in the UAE in detail.
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, earthquake 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 travelling, providing peace of mind.
Besides, here is the complete beginner’s guide to home insurance in Dubai and other Emirates elaborating on the concept in more detail.
Home Insurance for Landlords
Landlords need home insurance to secure their property from damages caused by natural calamities, theft and riots. However, the basic insurance plan only covers the building structure like walls and ceilings. To protect other assets inside the home, a comprehensive insurance plan is required.
Home Insurance for Tenants
Tenants are not covered under the home insurance policy of the homeowner. Tenants are required to purchase a separate policy for getting financial coverage while living in the property. Read through our blog on home insurance for tenants to know more about it.
Types of Home Insurance
Following are the different types of home insurance offered in the UAE.
Building Insurance
It is the basic type of home insurance that covers the building walls, ceiling and other elements. Building insurance usually covers damages caused due to natural calamities including fire, storm, earthquake and flooding.
Personal Belonging Insurance
Personal belonging insurance is more comprehensive and covers assets present inside the home. It usually covers valuable items like jewellery, electronics, rugs and carpets. However, few insurance providers also provide coverage for furniture and electronic appliances.
Owner and Occupiers’ Liability Insurance
As evident from the name, this type of home insurance covers all the damage claims against the policyholder and the family members.
Tenant’s Liability Insurance
The tenant’s liability insurance protects them from financial debts if the damages are caused due to their negligence. This not only aids in getting security deposits back but also results in a healthy tenant-landlord relationship.
What is Covered by Home Insurance
The inclusion and exclusion criteria of home insurance vary according to the type of plan and insurance provider. However, here we have mentioned generic inclusion and exclusion criteria of home insurance.
Inclusion Criteria of Home Insurance in UAE
Listed below are the common inclusions of the home insurance offered in the UAE.
- Content coverage while moving home within the UAE
- Alternative accommodation
- Property coverage when the policyholder is travelling
- Damages caused due to theft, burglary or fire
Exclusion Criteria of Home Insurance in UAE
Following are the exclusions of the home insurance plans in the UAE.
- Damages caused due to war
- Loss due to wear and tear
- Accidents caused due to radioactive elements
- Damages caused by mechanically propelled vehicles
Home Insurance Add-Ons
Aside from the general inclusions, some home insurance companies in Dubai and other Emirates also offer add-ons. The add-on enables policyholders to safeguard their valuable assets along with their property.
Mentioned below are some common add-ons offered by UAE home insurance providers.
- Insurance of collectables like art pieces, antiques, artefacts and jewellery.
- Coverage of maids in case of an accident
- Full coverage of pets
Steps for Purchasing Home Insurance in UAE
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 that 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 Provider
Once done with the requirements, shortlist at least 10 to 15 reputable home insurance providers in the Emirates. Look for client satisfaction level, financial stability and range of coverage options offered by the company.
Step 3: Get the Quote
After shortlisting reputable insurance providers in the Emirate, ask for quotes from all of them. Compare the quote, and consider inclusion and exclusion criteria, deductibles, coverage limits and additional benefits.
Step 3: Understand Terms and Conditions
It is necessary to understand the terms and conditions of home insurance. Discuss the policy with the insurance provider in detail and ask him to elaborate on every clause. In case of any doubt, seek professional assistance.
Step 4: Complete Paperwork
Complete the paperwork by submitting all the necessary documents required for buying home insurance. Moreover, prior to signing the contract, read it carefully. Look for subtle clauses and an Asterisk (*) symbol, as it means terms and conditions applied.
Step 5: Finalise the Process
Finalise the purchase by signing the documents. Make sure to pay the premium on time to avail of the benefits offered by the insurance provider.
If you are still confused, read through our blog on how to select the right home insurance in the UAE for detailed information.
Things to Consider When Buying Home Insurance in UAE
Now that you are aware of how to get insurance in Dubai and other Emirates, let’s move towards a few things that should be considered when buying it.
Consider Property Value
Prior to buying home insurance, consider the property’s value. Make sure the property’s value is less than the insurance premium. Moreover, conduct a property survey to identify any potential issues in the property.
Understand Policy
Navigating through the complex landscape of insurance policy can be difficult for many people. Therefore, it is recommended to seek professional assistance from a market expert to guide you through the process.
Prefer Premium and Coverage
Prefer the premium and the coverage offered when selecting the insurance plan. Make sure the plan offers a balance of both elements.
Adding Products in the Coverage
Usually, the products bought after signing the insurance plan documents are covered, if it is within the coverage limit. However, it is recommended to discuss the clause with the provider prior to finalising the deal.
Cost of Buying Home Insurance
The cost of buying home insurance in the UAE depends on multiple factors including type of plan, inclusions, add-ons and others. Roughly estimated, the premium is around 0.5% per year of the total coverage value. However, for building-only home insurance, the cost is around 0.1%.
FAQs
What are the documents required for buying home insurance in UAE?
Emirates ID/valid passport, proof of ownership, property plan, valuation report and property photographs are required for buying basic home insurance.
Is home insurance mandatory in the UAE?
No, home insurance is not mandatory but it is recommended to get your home insured to avoid financial debts in case of an accident.
Will home insurance cover if my pet gets injured in the accident?
The basic insurance plan does not cover injuries to pets during an accident. However, few companies offer this coverage as an add-on.
Here we conclude our guide on buying home insurance in the UAE. Home insurance allows owners to secure their property from any kind of damage. Although, the chances of accidental damages are rare, due to the advanced safety systems embedded obligated by the authorities. That said, you can also leverage these safety features by buying properties in the UAE and investing in real estate.
However, before buying a property make sure your income meets the minimum criteria set by the government. Here is how much you should earn to buy property in Dubai.
Stay tuned to dubizzle’s property blog for more information on insurance plans.
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