Posted on Dec 29, 2019

Home Insurance in the UAE: Everything You Need to Know

Compact condominium living room

As any homeowner can attest, the feeling of safety and security is immeasurable. Whether you have only recently bought a house or you have been living there for over 10 years, feeling safe in your home gives you and your loved ones peace of mind.

As your home insurance partner and one of the leading insurance companies in the UAE, we understand that your home is your castle.

And while burglary is rare in the UAE, there are other risks that can cause homeowners to lose their valuable belongings. Things like electric hazards and fire damage can pose a danger to your home and its belongings.

Worryingly, despite the rise in property development, 63 percent of UAE residents do not own home insurance according to a 2019 survey by a leading property listings platform in the region. This is of significant concern because an unforeseen accident or disaster can be a financial setback that can cripple a family.

Indifference towards home insurance in the UAE is caused by many factors, including a lack of understanding of why it’s necessary and how to get it.

Since home insurance comes in many different forms, it’s important to understand the types of home insurance policies available. Knowing what type of home insurance you need to ensure the value of your possessions and property will go a long way in safeguarding you and your family from unforeseen accidents.

Why is home insurance important?

There are three common causes of property damage to homes in the UAE: structural, fire and water. 

Structural damage

A key area of structural damage stems from sub-quality construction practices and subsidence. In some cases, natural causes such as earthquake may also cause damage. 

Subsidence is the gradual setting or sinking of an area of land. This can happen suddenly and without warning. Subsidence occurs due to underground material movement, making it a possibility for a property to be subject to this risk. 

And once the ground under your property starts to shift, its structural safety is at risk. 

Fire damage

Recent highly publicized tower block blazes in Dubai have also highlighted the need for building coverage. Fire moves fast. In just two minutes, fire damage can quickly engulf a residential property. 

It can rapidly spread from room to room, and in the case of a tower block, from floor to floor. In the event of a fire, all of your valuable possessions could be lost. 

And while installing smoke detectors can serve as an early warning sign for a residential property, even minor smoke damage from neighbouring properties can greatly damage the contents of your home. 

Water damage

Water damage can come from many sources. It can be internal, such as a leaky pipe or breakage of a water fixture. Or it can be external, a leak from the apartment above can seep into your home or flooding due to heavy rainfalls and tropical cyclones along the coast.

Accidental damage from leaks and flooding can quickly ruin a home’s contents. UAE residents who are away for extended holidays may come home to damage floors and the growth of mould or fungus.

Protecting the structure against these damages of your home begins with building insurance. 

Building cover policies ensure the physical premise or building structure is insured for total or partial damage. It will also safeguard you and your family in the event of an unexpected disaster.

Whether you own an apartment, villa, holiday home, in the event of a claim, building insurance will help you and your family get back on its feet financially. If your property suffers from any sort of physical damage, building insurance will cover alternative accommodation, domestic help, or even loss of rent should you be a landlord.

Tenants who are renting a property from a landlord are not required to buy building insurance. That is the responsibility of the landlord. Still, tenants should invest in home contents insurance so their belongings are covered in the event of an accident to the rental property.

There are also personal possessions cover that needs to be considered. Personal possessions cover differs from home contents cover in that it provides protection for “moveable” belongings such as a personal laptop, mobile device, or jewellery. 

How to make a claim

In the event of a disaster, making a claim is only a phone call away. 

Contact your insurance provider and they will walk you through the necessary steps to get the financial support you need. You may be required to file a police report (in the event that belongings have been stolen) or to provide receipts for the damaged contents and personal possessions. 

Read the small print so you are fully aware of what limits and restrictions are included in your insurance policy. 

Getting the right home insurance

As the property owner, it is your responsibility to get the right coverage for your property. In the case of a tenant, it is the tenant’s responsibility to seek insurance for their contents and valuable belongings. 

Home insurance doesn’t cost a fortune. Many home insurance providers offer plans for as little as AED 250 annually. This small cost will go a long way in safeguarding your home and its contents from damages. 

The best way to get the right coverage for your property needs is to go online and use a home insurance comparison tool

Our online comparison portal makes it easy for UAE residents and expats to quickly compare home insurance quotes side-by-side. In just three simple steps, we provide unbiased home insurance results, ranked by price.  

Having a comprehensive home insurance policy that includes building cover and content cover protects your home from these potential problems. Home insurance will also enable property owners to file insurance claims if loss of use occurs. 

Conclusion

Don’t overlook the importance of home insurance. When fire or accidental damage happens to your property, you don’t want to be stuck without insurance. After all, your home is most likely the largest financial investment you’ll make in your lifetime. 

Having a comprehensive home insurance plan will protect your property and its contents from any potential loss or damage. Through our online portal, you can compare quotes from the leading UAE insurance providers, helping you secure the best home protection for you and your family.

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