Unforeseen episodes of fire, flooding or theft can lead to contents of your home being damaged or destroyed? A Home Contents Insurance policy provides comprehensive cover against any such eventualities. Not only does it slash the costs incurred in case of an unfortunate incident, you can breathe easy knowing that your valued belongings are protected. Also, the cost of replacing lost or damaged possessions in the UAE is expensive enough to warrant an insurance cover.
Who Can Apply For It?
Home contents insurance benefits homeowners and tenants alike. While tenants get the advantage of home content replacement with this insurance, it is in the best interest of homeowners to get a more comprehensive insurance with an additional physical premises cover to safeguard their investment.
Home Insurance vs. Home Contents Insurance
Home insurance in the UAE often comes as a customary feature with a Mortgage. Even without a mortgage, homeowners are required to have a home insurance policy in place. It should be noted that this home insurance is different from home contents insurance in the sense that it covers only the physical premises of the property and not the contents therein. Home contents insurance, on the other hand, covers the cost of replacing personal possessions in case of an incident. The tenants also are solely responsible for insuring their contents since their landlord’s home insurance does not cover this aspect.
The Cost of Home Contents Insurance
A common misconception regarding Home contents insurance is that it is expensive. According to a research conducted by Souqalmal.com in 2017, the Home content insurance premium stood at an average of 0.6% of the value of the items covered. This means that a standard insurance policy can be set up for a nominal annual charge of AED 200. This cost, however, differs based on the value of insured items as well as any additional covers that the policyholder might select. Besides, benefits offered by home contents insurance are far more significant than the cost of buying one.
The Extent of Coverage
A standard home contents insurance policy would protect your belongings like furniture, appliances, electronics etc. against loss or damage caused by water, fire, earthquakes, lightning, storm, riots, malicious acts or vandalism. This policy can also be customized to include add-on features like cover for personal belongings, domestic help and so on for improved safety.
Some important benefits of home contents insurance include coverage for:
- The occupier’s legal liability due to injury to another person or damage of property.
- The tenant’s legal liability due to damage to in-house fixtures or hardware.
- Loss of rent or cost of alternative accommodation.
- Contents temporarily moved out for repair, cleaning, maintenance or renovation.
- Spoilage of food stored in freezer due to electrical breakdown.
Limitations & Restrictions
The exclusions to this policy include loss or damage:
- Due to regular wear and tear or ignorance.
- Owing to property remaining unoccupied for 45 consecutive days.
- To high-value personal items.
- Due to theft caused by house not being properly secured.
- Due to theft without a police report supporting the claim.
- If the property is lent, sublet or shared with anyone other than family.
It is especially important for policyholders to familiarize themselves with the terms and conditions and other fine details of the policy in order to avoid invalidating their cover.