7 Home Insurance Tips in UAE That You Should Definitely Know!
Buying a house is certainly a huge milestone in one’s life. This place is now going to be the foundation of your family’s future where memories will be made and cherished. So it’s natural that you want to protect it in any way that you can. And this is the reason why more and more homeowners are gravitating towards Home insurance in Dubai.
However, Home insurance comes in many shapes and form with different benefits offered by different insurance companies. So choosing the right insurance policy is easier said than done, and most of the time, we see people either over-buying their insurance covers or undercutting the bare minimum level.
What is Home insurance?
Home insurance is a type of property insurance where the policyholder will be covered for damages and losses that may happen to their house. The insurance basically covers internal and external damages, and in some cases, even covers for the loss of personal items.
Let’s now jump into how you can choose the best home insurance policy to suit your specific needs.
Keep the valuation real and accurate
We sometimes see that the actual value of the house and its possessions is different than what they are under one’s home insurance policy. And this is a problem when it comes to opting for home insurance because the premiums that you will have to pay will depend on the valuation of the house. If you over-estimate your home, then you will be paying higher premiums that you want to, and if you undervalue your home, then in case of any adverse events like a fire breakout or water damage, the compensation that you are going to get from the insurance company will be less than what you need.
Don’t include the price of land
When you are evaluating the price of your house and everything within it, many make the mistake of adding the cost of the land it is sitting on. However, you must not factor in the price of the land when evaluating the price of your home. This will result in over-estimating and will cost you a ton in the form of insurance premiums.
Make sure to not include land as a factor when estimating the price of your home.
Pay attention to the policy details
While reviewing your home insurance, make sure that you peruse through each line. Sometimes, a line means one thing to you but in actuality means something different.
For example, a line like “all household goods located contained by your premises will be covered” might make you think that all the goods within your house might be included under the cover. However, the term “Household goods” most commonly leave out electronic devices from the mix. So asking questions and raising doubts is a good thing when you are looking for home insurance in UAE.
Home Contents Cover Vs. Personal Possessions Cover
Another area that you have to pay attention is in the insurance covers themselves as they can get confusing at times and lead you to make an error in judgment. And two of the most confusing home insurance covers are Home Contents Cover Vs. Personal Possessions Cover.
Home Contents Cover insures for the articles of value that are present in your home against damages. They are supposed to be a part of the home at all times.
Personal Possessions Cover insures for the articles of values that the homeowners carry with them against damages, as well as theft. For example, the smartphone that you carry with yourself every day comes under personal possessions cover.
Personal Possessions Cover is costlier than Home Contents Cover. So, insuring a laptop that you only use indoors in a Personal Possessions Cover will cost you more without any benefit. Carefully review the guidelines of home insurance covers to see if they may or may not come to you of use in the future.
Use discounts & offers
This is one of the most underrated tips out there as people do not think of special discounts when choosing a home insurance plan.
UAE has more than 50 licensed insurance companies and this means options for the customer. The competition between these companies is also a great thing for the customers. Many insurance companies do put out special offers and discounts for a limited amount of time.
When you own a house with a quite an expensive valuation, shaving off a few percentages here and there can lead to a whole lot of difference in the final price tag. The best way to know about these offers and discounts is to ask your broker.
So, let’s get going?
At New Age Insurance Brokers, we take the time to understand what you want to insure and shop the market so that we can get you the best coverage at the best rate possible from best insurance companies in UAE.