Property owners in Dubai are obligated by law to get their homes insured. However, as per the legal definition, only building insurance is required which protects the physical aspects of the residence. The valuable items and belongings inside the home are not covered by insurance. Therefore, as a tenant, it is necessary for you to get your home insured to protect your belongings in case of an accident.
To cater to this, we have mentioned all the details regarding Dubai tenant home insurance.
Tenant Home Insurance in Dubai
Tenant home insurance can secure you from unlikely situations and the financial dents it causes. Let’s dive a little deeper into the types of Dubai tenant home insurance and the items covered by the insurance.
Types of Home Insurance
There are three different types of home insurance offered to tenants. These insurances protect tenants from the damages caused by natural disasters, fire, flooding, vandalism and burglary. Therefore, it should be included in your renting apartment checklist.
- Building Insurance: Building insurance provides protection against the damages caused to the building and its premises. Typically, landlords are expected to avail themselves of building insurance.
- Home Content: This includes all the items present inside the home like furniture, kitchen appliances and fine arts.
- Personal Possessions: Valuable items that can be carried outside the home are counted as personal possessions. This may include documents, mobile, tablet, laptop and jewellery items.
Eligibility Criteria
To avail of tenants’ home insurance, you must fulfil the following criteria.
- Tenancy contract registered with Ejari Dubai under the applicant’s name.
- The rented property must be in UAE’s jurisdiction.
- The market value of the assets needs to be covered.
- The applicant must be aged between 18 years to 65 years.
The above-mentioned eligibility criteria are general, and insurance providers may or may not adhere to it. Therefore, it is recommended to consult with home insurance companies in Dubai prior to purchasing home insurance.
What Home Insurance for Tenants Cover
Home insurance covers a number of personal use items and assets of tenants. However, this may vary according to the type of insurance you opt for.
Here are the complete details of things covered by tenants’ home insurance.
Content Coverage
The content coverage includes kitchen appliances, white goods, electronic items, home furniture and fixtures. Ideally, the coverage is provided when the damage is caused by natural disasters, fire, explosion, falling of installed objects and water leakage.
Personal Belongings
Personal belonging includes items that are of profound value to the tenants. This can include jewellery, watches, collectables, documents, mobile phones and laptops. That said, some insurance companies provide personal belonging insurance coverage even outside the UAE, like vacationing or travelling to your hometown.
Liability
Accidents due to human error can happen anywhere and the responsible person is required to compensate for the damages. Therefore, home insurance provides tenants’ and third-party liability to cover accidental damages caused by tenants. The liability also includes all the destruction caused by the tenants’ pets.
That being said, if you’re planning to buy a pet, read our blog on things to consider before bringing a pet home.
Alternative Residence
In case of a natural disaster or accident that makes a home uninhabitable, the home insurance company provides an alternative residence to the tenant. The time duration of this alternative residence varies from insurance provider to provider, but it is generally for 12 months. After this duration, the tenant will be requested to find another home.
Maid Coverage
If you have sponsored a maid in Dubai then domestic help coverage is essential. It provides coverage in case of repatriation, death and disability of your maid. The coverage also includes injuries caused by accidents while working at home.
Home Insurance for Tenants in Dubai Cost
The cost of home insurance for tenants depends on the total coverage value of the items listed for coverage. Typically, it is 0.5% per annum of the total covered value. For instance: the coverage value of a studio apartment is AED 200,000, and the premium will be AED 1000/year. Other than that, here are some other factors on which the premium depends.
- Optional Coverage: A number of insurance companies offer additional coverage that increases the premium price.
- Insurance Claim History: Generally, companies charge higher premiums from tenants who have claimed insurance previously.
- Insurance Provider: The cost of tenants’ home insurance varies from insurance provider to provider.
Things to Consider When Choosing Home Insurance
Myriad home insurance options are available in the market, each offering unique sets of benefits. However, a number of options to choose from can confuse tenants. To exempt this confusion, here are some aspects to consider when choosing a Dubai tenant home insurance provider.
Opt for a Reputed Insurance Provider
Home insurance is a long commitment, as tenants have to pay the premium for years. That said, seeking assistance from a reputable organisation is necessary, as it will aid in the near future. The first aspect to consider while selecting an insurance provider is their customer-friendly policies. Along with this, also check lawsuits on the company and their track record with the customers.
Consider Premium and Coverage
Once you have shortlisted insurance providers on the basis of their reputations, it’s time to compare the premiums and coverage. Shop around different companies and compare the premium they are offering. Opt for the company offering the highest coverage and charging a minimum premium.
Discuss Claim Process
One last thing to check before purchasing insurance is the claim process. A reputed company has the minimum turnaround time on the insurance claim settlement. Moreover, they have an easy claim procedure that facilitates tenants.
This was all about Dubai tenant home insurance. We hope that the above-mentioned information has elaborated on the significance of home insurance for tenants. Therefore, when looking for an apartment for rent in Dubai make sure that it is insured by the landlord.
If you are new to the Emirate, read our annual Dubai rental market report 2022 to know more about Dubai’s real estate.
Stay tuned to dubizzle’s property blog for more information on home contents insurance for tenants in Dubai.
