Home insurance for tenants in Dubai
Home insurance for tenants is as important as it is for the landlords. Whether you’re renting an apartment or villa, the tenant’s home insurance in Dubai can save you from many risks associated with living in a rented home. Needless to say, without home insurance, most of these risks may lead to significant dents in your financial standing.
WHY DO TENANTS NEED HOME INSURANCE IN DUBAI
Most of Dubai’s population comprises expats from around the world who live in rented villas or apartments. The owners usually insure rental properties in Dubai.
However, that insurance cover does not mitigate accidental risks or damages to the tenant’s belongings. It also does not cover the tenant’s liability for any unforeseen damages.
Home insurance for tenants in Dubai allows them to create a safety net against possible accidental risks to the rental property and their possessions.
Most insurance companies provide comprehensive all-risk tenant insurance in Dubai that evokes peace of mind and a feeling of security in the insurer.
WHAT IS THE TENANT’S LIABILITY?
The biggest benefit of having tenant’s home insurance in Dubai is the tenant’s liability cover. Also known as renter’s insurance or rental insurance in Dubai, this insurance covers tenants against rental property damage and wear and tear that may cost them their security deposit refund.
This is especially helpful when you’re living in a furnished rental apartment in Dubai or a furnished villa, where the landlords deduct any damage to property from the tenant’s security deposit cheque.
When you, as a tenant, have tenant’s liability coverage in Dubai, you can claim for any accidental damage to the landlord’s furniture, fixtures or fittings.
This damage may be caused by an accidental fire, flooding or water leakages in the property in your presence or absence. These damages, if not covered with insurance, can cost the tenant a fortune and result in a complete loss of their security deposit.
COVER TYPES FOR RENTAL HOME INSURANCE IN DUBAI
In addition to the tenant’s liability, home insurance in Dubai covers several other things that may cost the tenant a substantial amount in case of loss and/or damage.
Typically, insurance companies in Dubai provide the following insurance covers along with the renter’s insurance in Dubai.
BUILDING INSURANCE
This part of renter’s insurance in Dubai protects the tenants from any damage that may occur to the permanent structure of the home. It includes the bricks, walls, concrete and even the garage and swimming pool in some cases.
CONTENT INSURANCE
Contents insurance is increasingly popular among tenants residing in apartments in Dubai and those renting villas here. House content insurance in Dubai protects the tenant against any loss or damage to household items in the rented home. These items include, but are not limited to:
- Home décor
- Kitchen appliances
- Home electronics
- Furniture
PERSONAL BELONGINGS
Often, the renter’s insurance in Dubai is paired with coverage for personal items you carry outside the home. These items can include, but are not limited to:
- Clothes
- Watches
- Mobile phones
- Jewellery
- Laptops
It is important to bear in mind that this coverage might increase the insurance premium considerably. So, if you’re looking for basic Dubai rental home insurance, it’s best to look for flexible plans that can be customised according to your requirements.
ALTERNATE ACCOMMODATION
There have been cases in the past where homes became uninhabitable due to unexpected circumstances/disasters. This could be due to flooding, fire, or an explosion.
In such situations, tenants do not have backup accommodation and finding one requires considerable money. Tenants’ home insurance in Dubai also provides coverage for that.
Alternate accommodation may or may not be optional coverage, but having one ensures your expenses are covered while your damaged home is reinstated.
In addition to the above-mentioned covers, some insurance companies provide optional coverage for:
- Replacing old (damaged) belongings with new ones
- Loss of keys or damage to locks
- Damages to the property when you’re away for vacations
- Damages to the property when you’re moving homes
TENANT INSURANCE COST IN DUBAI
If you’re wondering, “how much is renters insurance in Dubai?” it’s safe to say that home insurance premiums are largely affordable. The tenant insurance costs may vary from one case to another.
The cost of rental property insurance is typically 0.5% of the total insured value per year. In simpler terms, for every AED 100,000 your belongings are insured, you’d pay around AED 500 annually in premiums.
A handful of factors affect the home insurance cost in Dubai. These include:
- Previous claims: Your premium will generally be higher if you have a history of home insurance claims.
- Optional coverage: Most insurance companies in Dubai offer additional coverage options, such as coverage for domestic help and document loss. The more coverage you opt for, the higher the premium.
- The insurance provider: Home insurance plans and costs in Dubai differ from one insurance company to another. Usually, it’s the seasoned market players that offer the best rates and flexibility.
FAQs
WHICH COMPANIES OFFER RENTAL HOME INSURANCE IN DUBAI?
Some companies that offer tenant home insurance in Dubai include AXA, RSA Direct and First Abu Dhabi Bank. You can call such insurance providers and request a quote to know more about the cost of renter’s insurance in Dubai. This type of insurance can help hedge against property damage claims in Dubai.
CAN I GET RENTAL PROPERTY INSURANCE IN DUBAI ONLINE?
Yes, many insurance companies in Dubai allow you to get quotes and purchase rental property insurance online.
IS IT MANDATORY TO GET RENTERS INSURANCE IN DUBAI?
No, it’s not mandatory to get rental home insurance. But it does give you a much-needed hedge against any potential claims in future. It also helps protect your belongings in case of damage caused by fire, theft, water leaks, and other unforeseen events.
It is important to note that market forces also play a part in determining the average home insurance premium in Dubai. In the end, it all boils down to what insurance policy you choose and how you customise it. So, select the right home insurance policy for you and your home. You must know the real estate expressions before opting for a rental home.
Those of you living in the capital city can explore the tenant home insurance plans offered by insurance companies in Abu Dhabi.
