Unless You Live in Your Car, Content Insurance is a Must in the UAE

For many in the UAE, it takes a bad personal experience to finally make them realize the importance of having home insurance. There is also a misconception that this type of coverage only applies to people who own property. However, nothing can be further from the truth; even as a tenant, it makes a lot of sense to insure your belongings. For example, for an annual premium of AED 250, you can insure the contents of your home up to AED 50,000! The cost is so minimal, that experiencing just one major incident in your lifetime will make it worthwhile. Here in the UAE, this type of protection is known as Content or Renter’s Insurance.

What is Content Insurance?

Content Insurance is a specific type of Home Insurance whereby the policyholder is purchasing protection against damage to the contents of their home. Home contents refer to objects that are not removed from one’s home, such as furniture, art, electronics and appliances.

What are home contents covered against?

As with all insurance, there are extensive terms & conditions.  In general, a policyholder’s belongings are covered against fire, natural disasters, theft, vandalism, storms, floods and water leaks.

Other benefits

In addition, most policies now come with cover for personal belongings, effects and possessions. Objects such as personal electronics, sports equipment and jewelry are covered against damage and theft both inside and outside the home (with terms & conditions of course).

Other options include cover for liabilities to the landlord or domestic staff, and protection against any damage that occurs while moving homes.

How much does Content Insurance cost?

Coverage for content insurance will typically cost at least AED 250-500. Here are some products currently being offered in the UAE:

 

Product A

Product B

Annual Premium (AED)

459

250

Content Cover (AED)

Up to 75,000

Up to 50,000

Personal Belongings Cover (AED)

Up to 25,000

Up to 10,000

Tenant Liability Cover (AED)

Up to 100,000

None

Excess / Deductible (AED)

250

250

 

How do you buy Content Insurance?

The process is quite simple, after choosing a policy, the applicant needs to provide the following documents:

  • Application
  • Passport copy
  • UAE residency visa copy
  • Emirates ID copy

After paying the premium (which can be done online) the applicant is insured.

The only caveat is that applicants have to declare any items over a certain value; for example, with AXA Insurance, an applicant has to declare any home content item worth over AED 40,000, or any personal belonging worth over AED 10,000.

How does a customer make a claim?

When a customer wants to make a claim for damaged property, they have to first cover the Excess amount, which is usually AED 250. The insurance company covers any cost above this.

For damaged home content, the insurance company may either:

  • pay the cost of repair;
  • pay the cost of replacement;
  • replace the item; or
  • make a cash payment.

Restrictions typically include:

  • Limit on the maximum amount paid for one incident – For example, if a flooding occurs, the maximum damage covered for this single incident may be 50% of the amount of total Content Cover you purchased.
  • Single Article Limit – This is the maximum amount that can be claimed for a single item. 

With most insurers, receipts, photographs, etc. are only required to make a claim if the item is considered high value. Police reports are also necessary if the claim involves theft or vandalism.

While health insurance and car insurance are the most common types of insurance in the UAE, it is not the only protection you should have. The items in your home probably cost you quite a bit of money, and for a small amount, you can insure them and have the peace of mind knowing you will be reimbursed for your valuables if they are damaged or destroyed.  

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