Take out home insurance. Better safe than sorry

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Take out home insurance. Better safe than sorry
Civil Defence officers extinguish a fire in a building in Al Muraggabat, Deira, in November, 2015. - File photo

UAE residents are gradually understanding the importance of home contents insurance.

By Ambareen Musa

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Published: Sat 6 Feb 2016, 11:00 PM

Last updated: Mon 8 Feb 2016, 8:10 AM

Many home owners come across this dilemma of whether they should really get their home insured and whether the investment will ever pay off?
Based on a 2015 survey by Souqalmal.com on home insurance, shortly after the Torch Tower blaze, 67 per cent of respondents said they still wouldn't consider taking home insurance cover at the time. The results also revealed that 45 per cent of respondents didn't think it was a priority while 34 per cent weren't sure how to get home insurance.
However, interest in home insurance policies seems to be increasing among residents, especially after The Address hotel fire on New Year Year's eve. Souqalmal.com registered an increase of 123 per cent in visits on its home insurance pages from January 1 to 14, 2016, when compared to the same period in 2015.
UAE residents are gradually understanding the importance of home contents insurance. If you're still wondering why you should invest in a policy, the below should help you get started.
What is home insurance?
Home insurance plans can mainly be divided into three different types of covers - personal belongings insurance, contents insurance (also known as home contents insurance), and building insurance.
> Personal belongings - This plan protects against loss or damage in your home or articles of personal use such as watches, jewellery and mobile phones due to theft or accidental breakage even if an item is taken out of the house.
> Contents insurance - This policy protects against the risk of theft or accidental damage of the contents under your roof. Such contents cover your personal possessions such as furniture, electrical items, clothes and more.
> Building insurance - This cover is intended towards rebuilding or repairing the property in case of a disaster and is usually arranged by the home owners. In case of apartments, the entire structure needs to be insured and for that, each home owner pays his share or else, the mortgage provider will have to issue an insurance.
What are the exclusions you should be aware of?
Home insurance policies will not provide cover or compensate you for claims related to pre-existing damage to the property or contents, damage arising due to regular wear and tear, acts of war or terrorism, among other risks.
Why do you need home insurance?
You can't predict an unexpected event. Yes, theft and robberies are relatively low in the UAE, but this doesn't eliminate the possibility that it can happen. Other dangers and risks such as fire also exist, as even a tiny spark can destroy your home and its contents. Hence, people need to secure their belongings from unexpected events and ensure being protected in case of such incidents.
Where can you get your home contents insured?
Several insurance companies provide home contents insurance with a range of plans. Take the opinion of an expert broker or do research on your own to understand all traits of home insurance.
What kind of insurance should tenants or owners get?
It is the home owners' responsibility to get their entire property insured (building insurance) whereas the tenants are responsible for protecting their personal contents. This is not mandatory but it is a precaution you should consider to protect valuable items in your home.
Many insurance companies also offer optional cover for domestic help, which covers medical expenses, repatriation expenses and permanent total disablement or death. This optional cover is a sensible choice for many UAE residents who sponsor their full-time domestic help and are legally liable for their well-being.
When applying for a policy, make sure to negotiate with the insurance provider on which policy fits your needs.
The author is the founder and CEO of Souqalmal.com. Views expressed are her own and do not reflect the newspaper's policies.


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