Renting in the UAE. Here are the ABCs of Home Content Insurance

Home Contents Insurance - A no-brainer!

Did you know that in the UAE, where the majority of residents prefer to rent a property over buying one, the property owner’s (landlord) insurance covers only the physical premises of the property? This means that if you are a tenant, your contents and possessions are not protected, if an unfortunate incident such as fire, flood or theft occurs.

"The number of fires that broke out in buildings and establishments and handled by Civil Defence Centres across the country during the first half of 2017 reached 928, leaving 115 injured and 12 dead," says Major General Al Marzouki, the General Commander of the Civil Defence.  The summer months see a surge in the number of fire outbreaks in the country. Also with the vacation season around and many residents flying to their spring getaways, the possessions are at a greater risk in your absence.

It is disheartening to lose your hard earned possessions at the blink of an eye. Be prepared and the solution to the situation is ‘Home contents insurance’.

What is it all about : 

It pays for damage to, or loss of, an individual’s personal possessions due to fire, theft, natural calamities and accidental loss or damage. It is usually sold alongside home insurance, but can also be purchased as a stand-alone policy, especially for those who are renting rather than owning their home and customise it to include additional cover. Most home insurance companies will settle your claim on a “repair or replace as new” basis.

What does it mean to me? : 

Subscribing to a Home contents policy is not yet a common or compulsory practice in the UAE. But considering a worst-case scenario, spending a nominal amount on the insurance would be a better bid than spending a fortune on getting the lost or damaged goods replaced. Well, that is the common logical thinking behind all other policies we have subscribed to.

How much will it cost me? :  

A standard policy starts as low as 200 - 250 Dhs a year, the cost differs based on the value of contents covered and the custom covers opted for. Get your valuables insured at less than one dirham per day!

‘Contents’ :  

‘Contents’ generally include household goods and personal belongings such as clothing, valuables, furniture and fixtures, electronics, that are located within your home. A standard policy can be customised to include additional cover for personal belongings, accidental damage, domestic help etc. For eg, valuable personal belongings such as jewellery and art pieces are covered, only if you have the custom ‘personal belonging cover’.

Regarding invalid claims : 

Your policy document states the terms and exclusions under your policy, which are in fact too many. The clauses that may deem your claim invalid includes leaving the house unoccupied for longer than 60 consecutive days (or as stated in the policy), lose or damage caused by your wilful act, not reporting lose / theft to the police, unexplained loss, not securing the house properly leading to a burglary etc. A licensed agent can advise you on the perfect customised policy to subscribe to. The terms and exclusions in the policy document provides better understanding of the plan.