Home is where the heart is, goes a popular saying. More often than not, you spend your life’s savings into building your dream home. In this day and age, home insurance is a must. However, you would do well to understand the claim documentation process to ensure that you can avail of it without any undue delay.
Low Penetration of Home Insurance Products in UAE
However, the penetration of home insurance across UAE is far lower compared to mature markets which many attribute to specific cultural traits. According to analysts, while expats from the west are well-versed with home insurance products, more often than not, they see their stay in the UAE only on a temporary basis, which translates to little or zilch home insurance. On the other hand, it has been observed that Arab and South Asian expats are not aware of home insurance products in the UAE. Significantly, a large percentage of residents in the UAE do not own homes, which to some extent, explains the low penetration of home insurance products.
Need for Home Insurance
Residents of UAE need insurance in the following areas
- Coverage for structure of a residence (explosion, natural calamities, domestic appliance, aerial device, falling trees, riot, labour disturbance, vandalism, storm, theft, accidental damage, cables, sanitary ware and so forth)
- Furniture and other immovable contents in the house
- Personal possessions (pedal cycles, documents, sports equipment, mobile phones, watches)
A basic home insurance policy in the UAE covers any damage due to fire, calamities in addition to damages from third parties to a specific limit. Some companies offer a packaged product wherein you do not have to list out the contents of your home but will be provided total coverage up to a limit ( lowest is Dh21 on a monthly basis). If you are looking for a more comprehensive coverage, you can opt for declared sum insurance, wherein the contents of your house will be listed and their value estimated.
- Property located in UAE
- UAE residents
Home Insurance Coverage
- Protects belongings when you are on a holiday for two months.
- Covers your personal belongings while moving into a new home.
- Covers your residence and contents (carpets, furniture, curtains, clothes, appliances and personal effects) against accidental loss or damage, theft, fire and natural calamities.
- Some insurance products include legal liability and worldwide personal liability (AED 1 million)
Excess: This is the first part of a claim which you should pay. If you make claims under two or more covers, only one excess (highest) shall be deducted from the total claim amount.
In most cases, the sum(s) insured, in most home insurance policies, is not reduced by the amount of claim payment unless stated otherwise. You can claim home insurance or the following items.
- Wear and tear
- Matching items
- Wear and tear
- Matching items
The total value of valuables, in many cases, does not exceed one third of the sum insured unless otherwise stated.
In most cases, for claims regarding the total loss or damage, nothing will be deducted for wear and tear except regarding clothing and damage to electronic devices such as television sets and computers.
In many cases, you cannot claim the cost of replacing undamaged items part of a set. For instance, only the damaged carpet will be replaced while the undamaged carpets in other rooms of your house even if of a similar pattern and make forming part of a set will not be replaced. Upon the loss of article of an insured pair, the amount payable will depend on the item insured at pro-rata of the set’s value.
Making a Claim
First, you should read your policy schedule carefully to check if the loss or damage you incurred is covered under your policy and the corresponding evidence required. You should also read the policy conditions and exclusions carefully. Thirdly, you should inform the police immediately after you discover that your property has been stolen and/or damaged, following which, you should contact the claims team of your insurance provider and provide all the necessary details. The insurance provider will send a claim form which you must fill in supported by evidence and documentation. You should ensure emergency repairs to rein in further damage. In some cases, if your claims include any boiler damage, you should not dispose-off the items.
Also, if a claim is being made against you for any injury or damage to property by a third party, you should send your insurance provider complete details. You must ensure your documentation is complete and clear to remove any ambiguity or grey areas.
- Any deliberate act by you or members of your family
- Liability arising from owning land or buildings, racing sporting activity, using or possessing on behalf of the insured person any motor vehicle, go-karts, assisted vehicles, gardening equipment, toys, boat, sand yacht, aircraft, hang gliders and so forth.
- Liability directly or indirectly due to death or disease of any of your family members
- Loss of or damage to property owned or occupied by any of your family members