Personal Insurance in UAE

Personal Insurances in the UAE, how, where and why to buy

Why is it important to take out Home Insurance in Dubai?

You would not consider renting an apartment or house in your home country without arranging comprehensive home insurance. But what is standard in your home country is optional and largely neglected in the UAE.

A recent study (October 2015) conducted by Zurich Insurance reveals that only 7% of UAE residents have home insurance. For tenants this figure drops to 4%.

What are the reasons for having home insurance?

Many tenants believe that their new home is insured by the owner of the property. This is indeed the case, but this coverage is only for the buildings and permanent fixtures and fittings like floors, built-in cabinets, bathroom fittings etc. The personal possessions of the tenant, including clothing, valuables, electrical equipment and electronics, pictures and household furniture are not covered.

Look in your house, open cupboards and drawers and do the maths, if you had to replace all your furniture, carpets, books, CDs, clothing, shoes and handbags, toys, TV and electronics, how much would it cost? You will be surprised.

What are the main home insurance policies available in the UAE?

  • Buildings insurance, taken out by the property owner and covers the physical building and fixtures and fittings, it includes civil liability.
  • Contents Insurance for the home contents
  • Personal Effects Insurance of your personal belongings. This covers items that you take out of the house in Dubai or when going on holiday. This type of insurance can be included in the home contents insurance. Accidental damage can often be included in this insurance.  

When home insurance is taken out, ensure that the terms and conditions are read in detail and compare insured amounts for each benefit, including those covering household belongings or personal possessions

What is the cost?

The cost of home insurance is not high and can be very useful even if the first risk that comes to mind, theft, for example, is not common in the UAE. The risk of fire due to poor electrical installations or water damage linked to air conditioning and hot water tanks are common and can be a source of significant damage in a house, especially if they occur during an extended period of absence. Just a simple short circuit can cause severe damage, even though the fire was quickly dealt with, the smoke can spread rapidly and cause damage. Without insurance, the cost of repair and/or replacement of personal possessions will remain the occupants.

A quick search of insurance deals available in the market shows that home contents insurance is available from as little as one dirham per day. The exact cost will depend on your coverage and what you wish to insure. It is easy to underestimate the value of possessions accumulated over the years, on average this can be by nearly 50% of the total value.

What about Medical Insurance for Household staff?

Medical insurance for household staff is compulsory in the UAE and this is offered by some insurance companies as an optional extra and can be added to your home insurance policy. This covers your salaried employee(s) in the event of accidental death or total disability, medical expenses caused by an accident and repatriation in case of death. Generally, accidents caused by the employee are not covered.

Where can Home Insurance be purchased?

The main insurance companies in the UAE to offer home insurance policies are:

HSBC also offer 3 levels of home insurance specially designed and priced for their customers (insurer Zurich partner). HSBC customers can subscribe online:

EMIRATES NBD (RSA insurance partner). No online service is available but you can request a call back:

These companies can offer full coverage details. An online quote can be obtained and purchase can be made by telephone or via the internet in minutes. Some companies offer 10% discount for online applications and full details are available on their websites.

How and where do I buy Motor Insurance?

Motor Insurance is compulsory in the UAE in order to have a car registered. You can expect to pay between 4 -7% of the market value of the vehicle on a fully comprehensive basis. The policy is valid for 13 months and inclusion of personal accident cover and an Oman extension should be considered.

If buying from a dealership, they can provide a quotation or alternatively competitive rates can be obtained on-line or over the phone with the following companies:

This article is issued for guidance purposes only and Encompass Relocations will not be liable for any false, inaccurate, inappropriate or incomplete information presented herewith.

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