The Importance & Benefits of Home Insurance29 Aug, 2019
Home Insurance is not a compulsory requirement in this part of the world but that doesn’t make it less important, especially if you have invested your lifetime savings in your dream home.
INSURING YOU HOME: IMPORTANCE & BENEFITS
Home Insurance is not a compulsory requirement in this part of the world but that doesn’t make it less important, especially if you have invested your lifetime savings in your dream home. We believe that buying Home Insurance Policy is closely related to investing on an alternative accommodation. Should an unforeseen incident happen to your shelter, a Home Insurance can take care of your immediate relocation needs as well as replacing/reinstating the damaged structure to get you back into your normal life. According to an online info graphic survey, over 6 out of 10 (61%) residents in Dubai do not have home insurance. Thus a large fraction of homes in Dubai are uninsured to the accidental damage, theft, fire and natural perils. Most important of this is the Fire damage. With a background of several reported incidents of fire damages recently in Dubai, it is quite surprising that 75% of apartment’s residents and 55% of villa residents is surveyed to have not assured their homes.
Few Insights about Home Insurance Coverage:
Home Insurance policy provides a wide range of coverage starting from the most basic hazards like fire, lightning, theft etc. and extends to earthquakes, cyclones, floods etc. In additional to providing cover for the above risks, the home insurance policy also provides an option of relocating you to an alternate accommodation of the same kind (like for like basis) during the period where your house is unfit for living. This remains optional though.
Storm, Flood, Cyclone
Explosion / implosion
Riot & Strike Damage
How does Home Insurance Work?
The insurance company would charge a minimal premium annually depending upon the rate applied to the value of the property. You would be happy to know that you can insure your home for just a minimum AED 1 per day (conditions apply).
At the time of a claim, say Fire Damage, under the Home Insurance policy, the insurer will either reinstate the property up to the sum insured limit or provide you an indemnity at the market value of the property. Market value is arrived by considering the actual value of the property, less wear and tear.
In case the Occupier is a tenant, there are specified policies which are designed to meet the requirement of a tenant. A tenant’s home insurance policy may cover Contents, Personal Possessions & Liability towards Landlord and Third parties.
How to choose a good Home Insurance Product?
The best way to choose a product of your need is to approach a professional broker. A broker will be able to understand your requirement and help you in choosing the right product.
Home Insurance can be extended further to cover Personal Liability (your liability towards third parties), Worldwide coverage for personal possessions like Jewellery, costly electronics etc. It can also be extended to cover injuries and accidents to domestic staffs.
A comprehensive Home Insurance product can help you save costs in lieu of having separate insurances.
Points to consider while taking a Home Insurance Policy:
In case of insuring your building, you must consider the Rebuilding Cost of the building. This is not the market value of your home. Reinstatement Value is the cost that will be incurred in reinstating your property to the exact same condition as it was just before the loss. Disclose all the material facts if you feel that it affects the judgment of a prudent insurer. It could be more than satisfactory if you fill in all the details on the proposal form provided by the insurer which would contain the required questionnaires. You should be aware of the deductible under your policy. At the time of the loss the insurer would require you to contribute a minimal amount to the loss. You might also increase the deductible should you feel the risk is controllable by your own preventive measures. This can also bring down your premium.