We break down on why contents insurance in the UAE is worth it for residents
23 December 2019| Last updated on 23 December 2019
Home contents insurance in the UAE can cost as low as AED 220 per year
While securing contents insurance to protect your personal belongings at home might seem like an obvious decision to make, The National reported that only 11% of residents in the UAE have a contents policy in place.
Contents insurance offers individuals protection by covering household items against fire incidents, burglary, malicious acts, water damages from leaks, and natural damages (rain, earthquakes, etc.) if these items are inside the household. This includes, but is not limited to, furniture, interior decorations, electronics, and kitchen appliances.
Only one in every ten UAE residents have a contents policy, which is much lower compared to other countries such as the U.K, where an estimated 75% subscribe to some form of home contents insurance.
As an expat in the UAE, building a new life abroad - from buying/renting property to purchasing home items and personal belongings - is very expensive. To safeguard your belongings and secure a form of financial security, having the right contents insurance policy is crucial.
Below, we've highlighted the importance of contents insurance for UAE expats.
Protects against big financial loss
Unforeseen events could happen at any time and it is always best to stay on the safe side. Should an event occur (a fire breakout, water damages from leaks, earthquakes, theft), your contents insurance will bear the financial burden if anything were to happen to your home items.
According to a report from Yalla Compare, these are the most common reasons why the majority of UAE residents have no contents protection:
- 1. They believe contents insurance will be too expensive.
- 2. UAE expats see no point as they believe the risks are low.
- 3. Residents assume that their landlords will cover such events.
Property fires occur several times a year in UAE
While the rate of UAE fire accidents reduced by over 40% in the last few years, at least three fires break out in homes across the UAE annually. Some of these incidents were reported to be a cause of faulty wiring, while others were random cases such as a cigarette butt left unattended. In such events, the contents of your home such as the home appliances, electronics, and furniture are at risk of damage.
It's highly recommended for expats to secure some form of contents policy should a fire happen at home and damage your property or household items.
UAE Contents insurance is fairly affordable
At an average price of AED 220 per year, contents insurance is a small expense compared to losing your home items and replacing them all yourself.
This is a small bargain considering it would cost at least AED 15,000 to refurnish just one 1-bedroom apartment in the UAE. The cost would no doubt be much higher if it was a three-bedroom apartment or villa.
Home contents insurance may come with additional benefits
In addition to protecting you financially should any damage happen to your household items, there are some benefits that typically come with your contents insurance, such as...
- Occupier’s legal liability: Covers the resident's legal liability from injury to a third party or loss/damage to property
- Alternative accommodation: The insurance will cover lost rent or the cost of alternative accommodation should your house become unfit to live in due to the damaged items.
- Frozen food: Any damage that may occur to food stored in a deep freezer in case of a power failure or breakdown.
- Tenant’s liability: If you, as the tenant, damages or loses any of the home's fixtures, cables, pipes, fittings, etc., the insurance will cover it.