Home Content Insurance – Is it really important in UAE?

Home content insurance in UAE

I thought of this as just another fancy insurance product in UAE, meant for people who own expensive artifacts in the house. We don’t own a lot of fancy stuff so I thought we didn’t need it but my spouse bought it any way. Fast forward 6 months to the day we returned from our vacation to see our house partially flooded- one of the pipes in the bathroom burst. Neighbours didn’t notice, as the water hadn’t come outside yet. The damage was shocking- furniture & accessories, electronics, DVDs, toys & books. Nothing very expensive as a single piece but put together it would cost us around AED 25000 to replace. It was quite a blow after an expensive vacation. When we read the policy cover to cover, we discovered some pretty amazing facts about what insurance provides a cover against:

  1. Loss of property (which means contents) even while you’re out on vacation with no one in the house:
  • Due to theft or burglary
  • Due to flooding or fire.
  • Replacement of locks and keys due to theft up to AED 1,000
  • Loss of valuables including your mobile phones & laptops.
  • Loss or stolen jewellery & watches
  • Lost or stolen wallet
  • And many more…
  • What’s more - Compensation is given to replace the lost or destroyed property and not on original cost. Btw I got the replacement cost & repairing cost for all items claimed.

    The insurance companies offer these policies in three or four different price bands with varied levels of coverage based the size of the house and the value of contents insured. In certain countries, the Home Content Insurance policies are a part of the overall Property Insurance that provides a cover against any damage to the house itself. It is, therefore, very important to understand the coverage offered by both these policies very clearly to understand the cover provided by each. 

    In the event of a loss of any item, theft or damage to your home contents, just call the insurance company and report the claim. If the items are expensive (over AED 10,000), they may request for a receipt to confirm the value of the item. The surveyors from the insurance company will come to conduct a survey in your property and will approve the claim based on the damage assessed by them. These policies usually pay the replacement value of the items lost and it is prudent to get quotes for all the items lost or damaged to get a proper claim on the same. 

    While you are selecting the insurance company, you need to look at a few important factors such as time taken to pay claims, number of claims that are rejected by the insurance company, the policy details, stipulations, clauses, premiums, deductibles and so on. Also, use online comparison services to compare companies, policies, and cost.

    Whether you are in a building or a Villa in UAE, Home Content Insurance is a must have and with prices starting from only AED 300 per year- It’s a great bargain for everyone.