Whether you’re home or away, your property and possessions are always at risk from potential perils such as fire, flood or theft. That’s why we’d always recommend a good Home insurance to to cover those unforeseen events. Want to know more? We’ve answered some of the top FAQs!
Q1) Why buy Home insurance?
Whether you own or rent, Home insurance is always advised so that your assets are protected. A comprehensive Home insurance policy offers invaluable protection against a whole host of perils such as fire, flood, storm and even theft and accidental damage, so is well worth considering.
Although Home insurance in itself is not mandatory, if you have a mortgage or any form of secured lending linked to the property, the bank or company providing the finance usually require proof of suitable and adequate insurance.
And even if your home is finance-free (for example you rent and have no secured lending), could you afford to replace any or all of your contents in the event of an unforeseen incident? Home insurance is a very affordable option and a few dirhams can potentially save you thousands!
Q2) Can anyone buy Home insurance?
If you’re a homeowner, you’re eligible to buy a Home insurance policy that covers both Buildings and Contents: as well as other coverages like personal possessions and property owner’s liability. Note that if you’re a tenant, your landlord is responsible for insuring the building (and associated property owner’s iability) and you should ask them for a copy of the relevant insurance in place. You can, however, insure any items/risks relevant to your occupancy, such as contents, personal possessions and occupier’s/tenant’s liability.
Q3) So what’s covered under a comprehensive Home insurance?
- For homeowners– cover for loss of or damage to buildings, contents and personal possessions including home and away cover. Buildings cover includes perils such as fire, flood and accidental damage and the policy also extends to include loss of rent (if you’re a landlord and due to an insured event your tenant cannot temporarily continue occupation) and alternative accommodation costs (if you have to rent a property elsewhere for your habitation due to an insured event preventing your occupation of your property).
- For tenants– cover for contents and personal possessions such as mobile phones, mobile technology and valuables like jewellery both in and outside the home (note that differing limits may apply when items are temporarily removed). Note that some policies also include the costs of alternative accommodation if they cannot inhabit the property due to an insured event.
- For both/either – cover for any injury, damage, or loss sustained to/by a third party arising out of your liability as the owner or tenant of the property
Q4) Am I still covered if I’m away on business or take a vacation?
Most policies have restrictions for unoccupancy meaning that if you are not resident in the property for a specified period of time, your policy coverage becomes inoperative. Typical policy periods range from 45-60 days upwards. Always check insurer’s terms and conditions for what would apply.
Q5) So, what does a standard home insurance policy cost?
Assuming that minimum sums insured/values covering contents and personal possessions are used, costs can start from as little as AED 430 – AED 450 inclusive of applicable VAT @5%. Note that if arranging an insurance with buildings cover included, the premium charged will be based on the estimated cost to rebuild the property (known as reinstatement value) and not its market value.
Q6) What influences the cost of Home insurance policy rates? How is the premium calculated?
There are several factors that influence and determine the price of your policy: the main ones being past claims history, the location of your property and any known risks associated (is it in an area with a past history of fire, theft, flood etc), your home’s physical condition (ie. standard of maintenance and construction), and of course, insurable values to be applied.
Q7) If I’m travelling outside the UAE, can I cover my mobile tech and valuables such as the jewellery I’m wearing?
Yes, it is possible to cover these items but note that the extent of cover may vary from insurer to insurer. Typical cover from leading insurers offers cover on a worldwide basis for up to 90 days.
Q8) Is there anything that typically isn’t covered under a Home insurance policy?
Whilst there may be a number of covers excluded under a Home insurance policy, those typically excluded are:
- Unoccupancy for more than a 45-60 day period
- Wear and tear
- Gradually operating cause (like water damage caused by a dripping/leaking pipe)
Q9) Can I help my home helpers by covering them under my Home policy?
Yes, most policies have an option to cover Domestic Helpers in respect of their medical and/or repatriation expenses.
Q10) I’ve had an incident that has damaged my home and I can’t live there at the moment. Will my policy help towards the costs of alternative accommodation?
Most policies have an extension for temporary alternative accommodation costs following an insured event. Note that this may or may not be included as standard so always check terms and conditions.
Q11) If I rent out my property on a short term let, will this be covered by a regular home insurance policy?
It is possible to cover short term rentals but this should be via an All Risks policy and not a standard Home policy. Contact an advisor at Insurancemarket.ae for more information.