“Home is where the heart is”- The statement stands true in all its essence. A home is a result of years of toil and hard work, a place you call yours. And so, it is imperative to have your home secured as much as anything else in life. Security is more than locking your house, it is a slightly more serious cover. Home Insurance Policy, it is!
Since home insurance is not mandatory in the UAE, it is mostly overlooked. But experts believe that having the cover of a home insurance policy is just as imperative, if not more, as car insurance or medical insurance.
What Is Home Insurance?
A Home Insurance Policy also referred to as Insurance that ensures that you and your labour of love and sweat- your house, is protected from any loss from unfortunate events. Home insurance compensates financially for any loss or damage to your home or its contents and your belongings in it, due to several natural and/or man-made calamities such as floods, earthquakes, fire, theft, and other unforeseen events. This, keeping your peace of mind intact, compensating for the financial loss incurred due to these events, It ensures that you and your labour of love and sweat- your house, is protected from any loss from unfortunate events.
If you’re an ex-pat, you must travel often, and long absence from home can have leakage, fire, wire damage situations which could lead to damage to your appliances, furniture, walls and decorative. These may be irreplaceable and hold emotional value. Once lost, you may not recover them. Home insurance will ensure you at least get the value of those items enough to replace them with new ones.
That would probably clarify the importance of having a home insurance policy. But once you get seeking one, there are certain notches to fill in before you zero down to one. Things you must consider when purchasing one-
Evaluate The Value That Will Be Covered
The most important consideration, and should be the first thing to be checked for before you get signing any document. If your home insurance plan covers less than half of the total value of the items you own in the house, trust us, it’s not for you. Keep looking for other options. A home insurance plan should cover the true value of your possessions.
What Items Are Non-claimable?
Don’t be under the assumption that any time you file a claim it will be accepted and paid for. Though in most cases they are, but keep in mind that there are instances wherein a claim can be rejected. This happens if the damage is due to your negligence or if you file a false claim. Our advice- never file a false claim. The more honest you are with your policy, the more benefits you will reap from it.
Is Your Property An Authorised Construction?
This is an important consideration that most are not aware of. In case the land on which your home is built or a part of it does not permit construction, any claim you file for its damage will be rejected. Make sure you have your property registered and claimed as legal/authorised construction to avoid rejection at the time of filing a claim.
What is The Coverage Of The Policy?
The reason you get home insurance is to have your home and everything it holds compensated for. How useful would be your paying hefty a premium if the plan isn’t giving you its worth? Get down to read terms and conditions from scratch. Run the fine-tooth comb through every term. Even if the contract mentions it will cover all items within the premises, verify from your insurance broker and clarify the insurance provider’s definition of ‘all items. A little bit of dredging can save you from heavy losses.
Is Alternative Accommodation Included?
You may be so involved in questioning the inclusions that you may overlook asking for Alternative Accommodation. But this one is what you absolutely must look for in your plan. You’re on a vacation and there’s a water pipe burst situation back home. Your appliances, furniture, walls, the floor are damaged. You don’t want to come back home, homeless. Alternative Accommodation cover provides you with a place to live in till your house is being repaired. Ensure you get one.
Are Home Contents Included?
Most people are under the impression that Home insurance policy will most certainly cover home contents, but you must keep in mind that it is not, unless you opt for contents to be included in the policy. Home insurance only covers the premises of the property- the building structure, walls, fences and wirings. Home contents include everything within the home- the furniture, appliances, belongings.
Third-Party Cover
Just as in car insurance, Third-party cover compensates you for injury and death of another person caused by your insured car, third-party cover in home insurance compensates for injury and death of another person within the premises of your home. Ensuring this is included in your policy will keep you protected from legalities arising from the same.