Home Contents Insurance and Why You Need It

Home Contents Insurance and Why You Need It

Unfortunately over recent years, fires in buildings across the country are a regular sight in local news. Plus with unstable weather of pouring rain becoming a more common occurance, a lot of tenants in the region have found themselves in a tight situation when it comes to their livelihoods. 

Regardless of the causes however, it's imperative that expatriates who are renting property - and/or own, it doesn't matter - have home contents insurance to protect their belongings in the event of a fire, flooding or even theft.

You see, if your home and your belongings within it aren't protected, setbacks like these can put you right back to zero and could potentially take you a very long while to recover and get back onto your feet financially. 

Don't panic, though. Home insurance is actually resonable in the UAE, perfectly manageable and a small price to pay each year to ensure your life is protected. 

What you need to know about home insurance
There are actually three types of property considered when it comes to home insurance; building insurance, home contents insurance and personal belongings insurance. 

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Building insurance is required if you own your home, which will cover the building structure for total or partial damage, as well as other related risks such as damage to personal property due to vandalism, theft, loss of rent or accommodation due to these events, replacement of locks and keys as well as injury to yourself or family inside the house and an occupier or tenant liability. 

Home contents insurance is a plan that applies to both owners and tenants, and icnludes loss or damage to home contents such as furniture, appliances and art. Whereas personal belongings insurance protects all valuables like jewellery and personal electronics in case they're replaced, lost or damaged whether in or outside the home. 

So to summarise:

• If you're an expatriate renting here you will need home contents and personal belongings insurance. 
• If you're a homeowner or a landord, your first priority should be building insurance. 

How much it costs for home insurance and where to buy it from
Approximately, as a homeowner or landlord you're looking at around AED 2,500 annually for building insurance. Both home contents and personal belongings insurance are approximately AED 250 annually. Bear in mind these are not exact rates, and are estimates. 

There are around 50 licensed insurance companies in the UAE, and many of them offer home insurance to individuals. But before you go signing anything, make sure you read the detailed policy wording to ensure you know exactly what you're buying. 

How to apply for home insurance
Once you've selected a few companies you're interested in, request quotes from them for exactly what you need covering; this can be done via telephone, on their website or directly if possible. By gaining quotes from a number of different companies, you can compare and make an informed decision. 

After you've decided, contact your chosen insurance company directly and discuss your policy with them. Always make sure that you fully understand exactly what's covered in the fine print before you go signing and paying for anything. 

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When everything is agreed and paid for, you'll receive your policy for your reference and information on how to place a claim in the case of an incident. 

Important tips to remember about home insurance

• It's always better to be safe than sorry; make sure you're covered!
• Always contact your insurance company directly after anything may occur
• Remind yourself to renew your insurance annually