MoveSouq.com, an online portal for home services in the UAE, reported three times as many requests for home insurance in the first week of 2016 after the Address Downtown Hotel was hit by a fire on New Year’s Eve.
This is what you need to know about home insurance and the importance of insuring your apartment, whether you’re an owner or a tenant.
What is home insurance?
Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.
Insurance for property owners
For most property owners, home insurance is a standard procedure. However, the standard home insurance provides coverage for your home/apartment only (physical property such as walls, ceilings and pipes). A comprehensive insurance, on the other hand, will cover your home contents and personal belongings.
Why you need it
Natural disasters, fires, and other misfortunes will affect your belongings, not just your property. If you own the apartment you’re currently living in, you should insure your belongings against any damages that may occur to your property and possessions.
Insurance for tenants
If you are renting your home, the property is most likely to be insured by the landlord, but that kind of insurance only covers the physical aspects of the property (the apartment/building itself), and does not provide coverage for your belongings.
Why you need it
Even though the landlord’s insurance covers the damages caused to the building/apartment, it does not cover your loss of personal belongings. As a tenant, you are advised to get a contents insurance policy; some policies even replace items with new ones in case of loss.
Before signing a tenancy contract, make sure of the following:
- Check for the insurance clauses in the contract.
- Make sure the landlord is not making you liable for any damages to the property, accidental or otherwise.
- Calculat the total value of your expensive belongings.
- Make sure your new apartment is safe for rent.
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