Property Insurance in the UAE | Detailed Guide

Real estate is the most popular investment class among UAE citizens, with almost six out of ten planning to purchase property either in the UAE or outside. Do you feel like you’ve outgrown renting and would rather put your money into an investment property in the UAE?

The next step is to get property insurance to safeguard your possessions from calamities like fire, theft, and even certain forms of natural disaster. Fire, flood, earthquake, house, and boiler insurance are just a few examples of the specific types of coverage that fall under property insurance in the UAE.

Types of Insurance for property buyers in the UAE

The building, contents, and personal property are the three primary aspects of property insurance in the UAE that purchasers should take into account. The kind of insurance required will depend on how the property will be used.

Building UAE Insurance

Any mortgage often requires building insurance. It protects the brick or concrete permanent structure of a house with an incombustible material roof against unintentional harm, fire, natural disasters, and water problems like leaks. The term building may also refer to a garage or a swimming pool, extending its scope to encompass these spaces.

The “owner’s responsibility” benefit is a special liability protection for property owners, covering them for any unintentional harm to a third party or damage to a neighboring property.

Contents insurance

When inside the house, contents insurance protects belongings against theft, fire, natural disasters, and unintentional damage. This may include, but is not limited to, household gadgets, furniture, and kitchenware. Personal items do come under contents, however, they are only covered within the residence. The amount insured should be equal to the combined current worth of all the possessions housed there, or the price of replacing the contents if they were all totally destroyed in a fire.

Buy contents insurance if you want to reside in the home or rent it out as a furnished apartment. It is essential to verify with the insurance provider if you want to rent out your home as a furnished unit since there are several exemptions to contents coverage in rental units.

Personal stuff Insurance policy

An extra category called “personal possessions” usually refers to objects that a person commonly brings outside the house. Watches, jewelry, computers, mobile phones, and clothing are just a few examples, but again, this is not an exhaustive list. Most insurance companies provide coverage abroad (across the globe) for up to 90 days, thus this extension is a nice extra perk for regular travelers who bring pricey personal belongings.

According to analysis, personal property loss or damage accounted for more than half (58%) of house insurance claims in 2018. Over 85% of claims submitted against personal property for InsuranceMarket.ae clients included loss or damage to portal electronic devices, especially mobile phones. The remaining 17% of claims were jewelry.

Additional cover insurance

When acquiring house insurance, there are extra insurance advantages. For instance, Loss of Rent or Alternate Accommodation Insurance offers landlords protection in the event that property damage renders it unsuitable for habitation. This pays the costs of an alternate residence for property owners who reside there. Only landlords who have leased out their properties are eligible for loss of rent, which replaces the rent payments they were due.

Prior to renewing their coverage after the first year of ownership, policyholders should evaluate their protection to see whether they are still sufficiently protected. A value that is out of date puts you in danger. Be sure to speak with a knowledgeable insurance agent if you aren’t sure of your coverage, haven’t discover the correct policy, or are interested in the extra advantages that aren’t often advertised.

How to choose the right insurance program and insurance company

In the UAE, there are lots of insurance provider organizations, all of which provide various types of insurance. AXA Insurance, MetLife-UAE, Arabia Insurance, Oman Insurance Company, Orient Insurance, Emirates Insurance, Alliance Insurance, and Zurich Insurance are a few of the most well-known.

Determining the best option may be assisted by online insurance service providers that carry out comparative studies of insurance market offerings. For example, yallacompare and insurancemarket are two online famous insurance service providers in UAE. The user must complete the form on the website by selecting whether they are a renter or a homeowner. Then entering the estimated worth of their personal goods and property, and providing their contact information.

The service will then choose insurance plans from several providers that are suited for the consumer. The insurance agent or spokesperson will then call for more guidance. Giving the client thorough details and suggestions on the best scheme.

The cost and holding properties of the insurance program should be taken into consideration while choosing it. The essential requirement is that the certificate’s insurance amount must cover the whole value of the asset or personal property. Examine each clause of the certificate carefully to determine which papers are needed in the event of an insurance incident.

It is crucial to carefully read the whole contract since there are key details, such as when the insurance money is not paid. For example, many businesses decline to pay for any damage if a home is vacant for more than 40 or 70 days.

It’s also crucial to examine the extra advantages that insurance providers provide, such as the supply of temporary housing while the damaged home is being renovated, the payment of rental expenses, or the refund of legal fees.

Review an insurance-providing organization rating and read client reviews prior to signing a contract with them. One should hire a merchant if they have no prior expertise with house insurance. A competent broker is aware of all the complexities and traps that should be avoided while purchasing an insurance certificate.

How much does Home Insurance cost?

Home insurance is more inexpensive than most peoples think; commonly rates start at Dh21 per month, or less than Dh1 per day. The projected yearly insurance payment would be around Dh1,445.85. If you had a two-bedroom flat worth Dh1.1 million with covered home goods and personal possessions totaling Dh175,000. This amounts to 0.1% of the total worth of your house, furnishings, and personal property.

The charge for tenants with the same contents would be Dh992.25 per month. Recall that your expenditure should not be based on what others paid.

FAQs

Is property insurance required in the United Arab Emirates?

Owners and renters of apartments each require individual insurance policies to protect their property. Homeowners in the UAE are not required to have property insurance regardless of the fact that building insurance is needed.

What types of insurance are available in the United Arab Emirates?

• Property insurance
• Travel Insurance
• Life insurance
• Health insurance
• Auto insurance

In UAE, is allowed to have two insurance policies?

Yes,  you may have two or more health insurance plans in Dubai and the United Arab Emirates. And there are several benefits to doing so.