If you’re already reasonably well-informed about home insurance elsewhere in the world, it’s unlikely you’ll find anything strange about home insurance in the UAE. An international insurance professional would still be completely at home within the Dubai home insurance market. But from tenants to landlords, the same questions do still arise around the world, so let’s look at your home insurance needs, how to determine them, and how to get the right cover for your peace of mind.

    Renting an Insured Home Doesn’t Mean You’re Covered

    Many people make the mistake of thinking their home contents and personal belongings are automatically covered by insurance when renting an insured property. That’s not the case. If you are a tenant, you still need household contents insurance to cover you. After all, if there was a sudden electrical fire, or plumbing leakage while you were away from your home, you might just not be ready to cough up the costs involved with replacing all your home contents and personal possessions.

    If You’re the Landlord, Have the Structure Insured – and Consider a Few Extras

    Structural damage to a building can prove to be enormously costly. Whether it’s caused by subsidence, poor construction practices, fire, or water, covering the costs can be so onerous that property owners give up and sell up for a song. With the right insurance coverage, that won’t happen.

    You might also want to consider liability insurance in case anybody gets hurt on your property. When you live in an apartment, the exterior of the building is covered by commercial insurance and you need only insure your unit. If you live in a villa, your insurance policy should cover both the exterior and interior of the building. Of course, aside from the structure, it’s always a good idea to include household contents and personal belongings in the cover, if you occupy your own property.

    Home Insurance in the UAE: Costs

    As a rule of thumb, you can expect to pay roughly 0.5 percent of the total coverage value per year when insuring household contents. To get adequate cover, estimate the value of your household contents before speaking to an insurer.

    Because buildings are less subject to risk than personal possessions or vehicles, insurance costs are as low 0.1 percent of the insured value per annum. By contrast, car insurance will set you back 2 to 5 percent of the insured value.

    Pricing of building insurance is based on the rebuild value and its risk profile. For example, buildings on land reclaimed from the sea are considered to be in a relatively high-risk location and insurance is priced accordingly.

     

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    Choosing the Right Insurance Policy

    With the fifty insurers licensed to operate in the UAE, choosing the right policy can be a complicated business. The cheapest policy might not always offer the best coverage, and you should always be sure to study the policy documents before committing to anything.

    Compare benefits such as coverage for alternative accommodation if you are unable to live in your home due to an insured event or cover for your personal belongings when taken with you outside of the country. Always ask about the claims procedure including any supporting documentation that would accompany it.

    Now thinking about taking out a home insurance policy? We can help! InsuranceMarket.ae has partnered with leading regional and international insurance companies in the UAE to provide the right product for you, whether you rent a studio in Dubai or own a five-bedroom villa in Abu Dhabi.