Every big newspaper, magazine or blog – You’ve heard all of them tell you about the importance of home insurance and how it can save the day when disaster strikes. But do you know what a home insurance policy looks like? Here’s what you need to know before you make your purchase.

What does a home insurance policy cover?

Before you shop for your home insurance policy, it’s worth knowing how you stand to benefit. Below is a list of standard covers that you will receive as part of your home insurance policy in the UAE.

Fatal injury benefit: Your policy provides a sum of money in the event of your or your spouse’s death as a result of any of the insured perils.

Alternative accommodation: If your home is damaged to the extent that it becomes unfit to live in, you will be compensated with the loss of rent or alternate accommodation.

Tenants liability: This feature protects you in case of loss or damage caused to the landlord’s fixtures and fittings.

Legal liability: This cover protects you in case of injury or death of a third party, or loss or damage to their property at your premises for which you are legally liable.

Visitor’s personal effects: This cover protects you in case of loss or damage to a visitor’s belongings while at your premises.

Contents in the open: Belongings which are present outside your home premises but within the boundaries of your property are usually covered up to a maximum limit.

Contents temporarily removed: Contents which have been temporarily removed from your home premises or are in transit when moving houses are covered too.

Keys and locks: If the keys to your house are stolen, the insurer covers the cost of replacing locks or similar installations.

Freezer contents: Spoilage of food in the freezer as a result of rise or fall in temperature, electricity failure or breakdown is covered up to a maximum limit.

Replacement as new:  This means that you will be compensated on a ‘replacement as new’ basis. Your damaged home contents will be repaired or replaced.

[Related: Why tenants shouldn’t skip home insurance]

Can I extend my coverage?

You can also choose to extend the scope of your policy for increased protection. Additional covers that you can add to your home insurance policy include:

Accidental damage: This cover extends to all your home contents in the event of loss or damage caused accidentally.

Domestic staff: This add-on cover protects your domestic help in the event of any injury, permanent disability or death caused by an insured peril. This covers their medical and repatriation expenses too.

Personal Belongings: This feature protects your personal belongings such as documents, jewelry, valuables and portable equipment in case of loss or damage accidentally, up to the sum insured.

Personal money and credit cards: This cover extends to your personal money or credit cards in the event of theft or damage up to a maximum limit.

What is not covered?

While your home insurance policy provides you extensive coverage in case of loss or damages, there may be some exclusions. Some of the risks that may not be covered include war, terrorism, radioactive contamination, gradual wear and tear etc.

[Related: 5 items you didn’t know your home insurance covered]

What is the maximum coverage?

The maximum amount of cover that you receive depends on the type of policy that you choose. Most insurance providers have different grades of policies such as silver, gold and platinum. The more premium your policy is, the more coverage you will receive.


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