What is Home Insurance?
Home insurance enables you to protect your home from all those unforeseen circumstance such as fire, robbery, accidental damage etc. It is a kind of bond between an insurance company and you. You agree to pay a comparatively small amount to your insurance company which in return will provide an assured sum of money in case any damage caused to your home. Your insurance company will bear the burden of large but uncertain loss in the future. In UAE, many banks in UAE such as ADCB, Emirates NBD, FGB (First Gulf Bank), HSBC Bank etc. offer home insurance to save your home and personal belongings from various unforeseen circumstances.
Importance of Home Insurance
Home insurance is important for both property owners and tenants. It protects them from any kind of unforeseen incidents leading to property and personal damages. Home insurance ensures that they have adequate protection to face any damage or robbery done to their properties in their presence, and also when they are away from home. These days, home insurance has been made almost mandatory by banks which offer home loans. You many not live in your house or you may rent it, or keep it vacant, but whatever many the reason, you need to buy property/home insurance so that if any damage occurs to your house, you don’t get financially ruined by bearing its repairing cost.
Types of Home Insurance in the UAE
There are many reasons as to why many people in the UAE don’t take out home insurance policies. It could be because of low home ownership, low risk of natural disasters and low crime, but the government has stressed on the importance of home insurance and a number of people are beginning to insure their homes. If you haven’t insured your home against potential financial losses, here are the three kinds of insurance and how they can cover any losses incurred by your home.
- Building Insurance
- Personal Belongings Insurance
- Home Contents Insurance
People who own their own homes can opt for building insurance as it offers financial cover against your home’s structure, the structure of your windows, doors, walls and roof. Living expenses, replacement and repair costs can be substantially reduced in case your apartment or home suffers any damage. Building insurance covers your building from damages caused by flooding, fire, earthquakes, vandalism or theft. It also covers financial losses incurred due to unliveable home, such as loss of rent. Even replacement of keys and locks is covered by building insurance.
The price of building insurance often depends on the property’s rebuild value and its age along with the risk associated with the location on which it stands and the amount of damage it has incurred in the past.
This kind of insurance policy meets the requirements of both renters and homeowners. It covers personal belongings like musical instruments, jewellery and musical instruments that are damaged due to flooding, fire, vandalism or theft. The percentage of high-value items is usually limited by insurance companies. For instance, a work of art or a piece of jewellery that is worth AED 30,000 may need coverage of AED 120,000 (personal belongings + coverage) so that it denotes nothing over 25% of the insured items’ total value.
This kind of insurance is ideal for both renters and homeowners. It covers the costs associated with replacing the possessions of your home, like fine art, furniture and appliances. It also covers damages caused by flooding, fire, natural calamities, vandalism and theft. The policies are usually sold along with personal belongings insurance and building insurance.
Coverage - Items Covered by Home Insurance Policies in the UAE
The number of home insurance policies taken out in the UAE is constantly on the rise as a growing number of homeowners are protecting their homes and the content therein from financial losses that may be incurred due to theft, damage or destruction. Whether you are taking out a policy that covers the entire building in which you live or just the contents of your home, it is essential to attain a complete understanding of the product if you wish to derive maximum benefits. Here we will discuss some of the important details regarding home insurance that are often missed out by most applicants.
- Key and Lock Replacement
- Lost Wallet
- Portable Equipment and Mobile Phones
- Frozen Foods
- Shifting Homes
Most people who take out home insurance don’t know that their home insurance policy also covers the replacement of keys and locks. In case your keys are damaged, stolen or lost, you can claim insurance from your provider. Home insurance policies work to great effect with people who are frequently locked out or make routine trips to the locksmith, thereby covering the cost of replacing keys and locks.
Home insurance policies provide cover for lost wallets too. Customers who lose their wallets or have it stolen can claim insurance from the company. The costs associated with reapplying for all your personal documents such as driver’s license or any of your other identity cards will also be covered by the insurance company provided that said documents were in your wallet when it was stolen or lost.
There is no doubt that mobile phones have grown to become one of the most commonly used devices in our daily lives. In fact, they have become a necessity for anyone who wishes to stay connected with their loved ones and keep up with the trends. However, mobile phones, like other portable equipment, are exposed to the risk of damage, loss or theft, which is why insurance providers have begun offering customers the option of insuring their mobile phones so that financial losses can be covered by the company when the need arises.
When taking out an insurance policy to protect your home, the last thing you would probably think of is the food in your freezer. However, in case you have a barbecue party coming up, there is a good chance that you would have stocked up enough frozen foods to satiate a sizeable group of people, and you may have spent a substantial amount of money on purchasing these items. In case your refrigerator causes problems and the frozen foods get spoilt, you can claim insurance from your provider and have your money reimbursed.
When moving from one home to another, there is always the risk of damaging your possessions such as furniture and electronics. If you incur any financial losses due to theft, loss or damage of equipment when shifting houses, you can contact your insurance provider and they will reimburse you for any damage caused, whether it is by the movers or yourself.
Reading the terms and conditions of the home insurance policy can help you better understand all the financial losses that can be covered by your plan.
Key Features and Benefits of Home Insurance
You can enjoy a host of benefits and attractive features by insuring your home and property against unforeseen events. The benefits and features include:
- Home insurance provides cover for damage caused to your home by fire, accidental damage, natural calamities and other unexpected events.
- You get home insurance for content damage.
- Also, you get home insurance for personal damages which include damages caused to articles such as watch, jewellery, laptop, mobile phone etc.
- Provides cover for damages caused during shifting.
- Get comprehensive and greater benefits.
- Provides cover for loss of rent.
- Cover for tenant’s personal belongings is also available.
- Some insurance companies also offer personal belonging coverage across the world.
- Offers cover for rebuild value of your home including garage and swimming pool expense etc.
- Get complete peace of mind by insuring your home.
- Cost of home insurance is affordable.
- You can get legal liability coverage for claim made against third parties like domestic helpers who suffer injury at your home.
Mentioned below are a number of exclusions under home insurance:
- Loss or damage caused by war, terrorist activities or any other criminal activities.
- Loss caused deliberately.
- Damage caused by wear and tear of your home.
- Theft caused under certain circumstance.
- Pre-existing damages.
- Damage caused by earthquake.
- Injures or death caused while swimming.
Exclusions under home insurance may vary. Also, they are subject to terms and conditions of a particular insurance provider.
How to make a Home Insurance claim?
In case of any damage caused to your content and personal property, you can contact your insurance provider and claim your home insurance. You can contact your insurance provider via phone or email. Then, their representative will follow up with you as per your request. Also, some insurance companies accept claims online. What you have to do is to fill up the online application form by putting personal information such as your name, E-Mail, policy number, date of incident, phone number etc. It is important to intimate your insurance company as soon as possible, so that it can send a surveyor for assessing your loss. You need to submit a police report for the damaged or stolen property, a proof purchase, a filled claim form and any other documents required by your insurance company.
Buy Home Insurance Online
These days you can buy your home insurance policies online without personally visiting the insurance provider. Also, you can make your home insurance claims online in case any damaged caused your property or personal belongings.
How to choose the best Home Insurance in UAE?
First, you need to decide whether you need home insurance or not. Once you decide to purchase insurance for your home, study the insurance market and find out the best providers of home insurance in UAE. Get quotes from various insurance providers and find out the inbuilt and add on home insurance covers offered by them, and compare. Once, you are clear about what all you need and what all they offer, you can proceed to finalize your insurance policy.
Also, you need to let your insurance provider know the condition of your home so that it becomes easier for them to plan and revise your policy based on your requirements. Which plan you require is mainly dependent on the value of personal possessions and contents. Going forward, you need to inform your insurance provider about any change or extensions done to the physical structure of your home, so that you can opt for a revision of your policy based on the new risks factors.
Top Home Insurance providers in UAE:
Some of the top home issuance providers in UAE are -
Emirates NBD offers home insurance cover to protect your home against fire, theft, natural calamities and accidental loss or damage. It also protects your belongings when you are away or on a holiday trip for up to 60 nonstop days. With the home insurance offered by Emirates NBD, you can get cover for legal liabilities and worldwide personal liability cover of up to AED 1 Million for you and a member of your family.
FGB offers home insurance policies which are suitable for both landlord and tenants. These policies are underwritten by Zurich Insurance Middle East S.A.L. or commonly known as Zurich. Home insurance benefits offered under FGB Home Insurance policies are subject to the terms and conditions of Zurich.
Abu Dhabi Commercial Bank offers home insurance for damaged done to your personal items and contents of your home. It also provides optional cover for fatal injury caused to the insured person or his/her spouse. ADCB Home Content Insurance is underwritten by Abu Dhabi National Insurance Company (ADNIC). This insurance cover is subject to the terms and conditions of ADNIC.
Mashreq Bank offers Home Comfort –a comprehensive home insurance policy that provides cover for the contents of your house against damages caused by fire, storm, flood, cyclone, robbery etc. The policy is underwritten by AXA Insurance gulf. Home Comfort provides high coverage at low premiums. The policy is subject to the terms and conditions of the contract issued by AXA Insurance gulf. You can get cover for content, personal belongings, domestic helpers and rebuilding of your home with this policy.
Citibank UAE offers AIG Home Insurance to help you protect your home and personal property from any unforeseen damages. It is a compressive home insurance policy offering cover for building, content and tenants’ personal belongings
HSBC Bank in UAE in association with Zurich offers home insurance policies to provide cover for any unexpected loss or physical damage caused to your contents and personal possessions. It mainly offers cover for content damage caused by fire, accidental damage, unexpected events and natural calamities. With this insurance, you can also get cover for personal belongings such as jewellery, watch, mobile phone and laptop. HSBC Home Insurance mainly offers three categories of cover which include - Content, Personal Possessions and Zurich Building. Under its Zurich cover, you can get coverage for accidental building damage and payment towards alternative accommodation etc.
Frequently Asked Questions - FAQs
Does HSBC Bank in UAE offer home insurance cover for damage caused to personal belongings?
What is the eligibility criteria required for buying home insurance offered by HSBC UAE?
What are things that a home insurance policy normally does not cover?
What optional cover does ADCB offer under its home insurance plan?
Can I buy my home insurance policy online in UAE?
Why do I need home insurance?
What do you mean by accidental damage?
If I go for a holiday and something happens to my contents or personal belongings, will my home insurance policy cover it?
Will any loss or damage caused to my goods while shifting be covered by home insurance?
How should I proceed to choose a best home insurance plan?
How will a home insurance benefit me?
What kinds of insurance covers are available in the UAE?
Yes, HSBC UAE provides cover for damages caused to personal belongings such as watch, jewellery, laptop, mobile phone etc.
The eligibility criteria include – you need to be a UAE resident, you have to own a home in UAE, you need to be the sole resident without co-sharing your house, and you need to be an existing HSBC customer.
A home insurance policy normally does not cover damages caused to your home by wear and tear home, damage caused by war, terrorist activities or any other criminal actions, loss caused deliberately, and pre-existing damage etc.
Abu Dhabi Commercial Bank (ADCB) offers optional home insurance cover for fatal injury caused to the insured person or spouse.
Yes, you can buy your home insurance policy online in UAE by visiting the website of your insurance provider and submitting all required information.
Home insurance will help you protect your home and personal belongings against unexpected future damages caused by fire, accident, certain natural calamities etc.
Accidental damage refers to the damages done to your contents and personal belongings by accident, without purposefully damaging them.
Yes, your home insurance policy will take care of your personal belongings and contents even when you are away from home. However, it will be applicable for stipulated period of time mentioned on the policy document.
Yes, damage done to your contents while shifting will be covered under home insurance. However, it is subject to policy terms.
Based on the value of your contents and personal possessions, you need to choose your home insurance plan.
A home insurance policy covers you against unexpected occurrences in your house. You could make a claim in case of fire, burglary, repairs and accidental damages.
- A simple Home Insurance protects only the building against damages or theft.
- A Home Contents Insurance policy insures the contents of your home against damages or theft.
- A Personal Possessions Insurance policy covers your belongings not only inside your house but anywhere in the UAE. The policy can also be extended for a specific period of time when you are travelling outside the country.
- These insurance policies can be taken both by tenants and homeowners. You can also choose additional benefits such as Tenant’s Liability if you have to pay to your house-owner for loss or damage towards the building or fixtures.
Is the food in the house covered under a home insurance?
Food in freezers and refrigerators can be covered under the home insurance. However, this is valid only if your food items have been spoilt because of a breakdown of your house’s electric system or power failure.
Can I insure my domestic helper?
You can choose to include your domestic help in your insurance cover at a little extra premium. This will cover accidental bodily injuries to the domestic help, medical and repatriation expenses of the person, and compensation in case of death or disability of the person.
Am I personally insured against death or injury under a home insurance?
If your insurance policy includes a Fatal Injury Benefit clause, then you are liable to get compensation from the company. If you or your spouse meets with an injury or dies in a house fire, burglary attempt, lightning or explosion, then you or the nominee can claim the benefits as specified in the policy.
How do I make a claim?
In case of fire, burglary or theft, or loss to the building or possessions, you need to first file a police report. This report has to be submitted when making a claim. Forms for making a claim can be obtained from the insurance company. A photograph or purchase receipt of the stolen or damaged property before the damage was inflicted, would help speed up the process of settling a claim.
News about Home Insurance in the UAE
Very few UAE residents ready to purchase home insurance
According to a survey conducted by Qatar Insurance and ServiceMarket, a large section of the UAE population does not have home insurance. Respondents of this survey mentioned that having a home insurance policy is worthless as they live on rent and do not own a property. Most people in the UAE rent a residential space and their possessions are not insured under the landlord’s home insurance policy.
There is no awareness about the benefits of having a home insurance policy. People generally buy insurance policy only when it is compulsory or when they need protection.
A tenant should ideally take insurance for home products and for personal belongings. Homeowners should take building insurance to secure their building from theft, fire accidents, or natural disasters. This insurance policy will also cover damages made by a tenant residing in your property.
16th December 2016
Survey Reveals that Home Insurance Increases by 123%
Home insurance policies in the UAE recorded an increase in interest by around 123% in January 2016 after the fire was reported at The Address Downtown in Dubai. According to a survey conducted in March 2015, 67% of respondents said that they will not avail home insurance cover, while 45% said that they didn’t treat home insurance as a priority while 34% said that they were unaware regarding obtaining a policy.
08th February 2016
Survey reveals that Less than 50% of Dubai Residents' Homes are Uninsured
Around 50% of villas and less than 34% of apartment buildings in Dubai remain uninsured, revealed RSA and MoveSouq's recent survey. More than 60% of the emirate's residents are not equipped with home insurance, and a new survey reveals that around 75% of renters do not find such coverage worthwhile.
In comparison with renters, home owners are more open to adopting home insurance policies, with 66% of them opting for coverage. Bana Shomali, the CEO of MoveSouq said that the number of uninsured homes in Dubai was surprising considering the number of apartment building fires reported in some of the emirate's most prominent residential areas, and also because basic insurance is easily affordable and widely available.
Though the adoption of home insurance in Dubai is relatively low, David Harris, the marketing and sales director of RSA says that it is shocking that it remains the least chosen in comparison with other kinds of insurance, with less than 30% respondents of the survey claiming to have applied for it.
18th September 2015