29 09 2020

Insurance in Dubai, the United Arab Emirates. Part 2

Insurance in Dubai, the United Arab Emirates. Part 2

In the first part, we talked about how to find and select a suitable policy and apply for it, about some of the subtleties in the documentation and about cases that are insurance.

Do I need to make a list of all the items in the house?

There is a variant of policies, which include common items in the house. You will need to make a list of all items that cost more than the set limit.

What is the limit? Limit is the amount of the maximum payment for an item that you can count on as a result of an insured event.

If the cost of an item is less than the limit, then it does not need to be included in the list, it is covered by the policy in general. Usually the limit is 10 thousand dirhams. But sometimes the amount may be different.

But things, the cost of which is more than 10 thousand dirhams, must be declared with the help of the insurer before the issuance of the insurance policy. Such items may include watches, jewelry, and other personal items and assets.

It is worth noting that the cost of an expensive item may affect the final cost of the policy, which, accordingly, may increase.

What are the reasons for home insurance?

In the United Arab Emirates, only 9% of residents have an insurance policy for domestic property. It follows that this type of policy is not very popular.

The main reason for the lack of a policy is the fact that tenants are not owners. And they don’t see any objective reason for insurance.

The lessor's policy does not cover internal property, it covers only the building itself.

Some people just have little knowledge of home insurance and that is why they do not use these services. These people assume that insurance is too expensive for them. Others do not see the point in insurance due to the short period of stay in the United Arab Emirates, and also assess the likelihood of risk for property as very low.

How much will insurance cost you in the United Arab Emirates?

For some reason, people are sure that having a policy is a large expense item, but in reality, even with significant coverage of the policy, its cost remains very acceptable for most residents of the UAE.

The cost is directly dependent on the following factors:

- property status;

- the size of the property;

- the presence of valuable items and their number in the house.

Approximate numbers look like this:

- An apartment with one, two, three rooms - the price of the policy for 1 year is from 200 dirhams to 1 thousand dirhams.

- Villa with one, two, three rooms - the price of the policy for 1 year is from 1.5 thousand dirhams.