Purchasing is property is obviously one of the biggest milestones in the life of people. This place will be the foundation of the future of your family, where you create lasting memories and cherish them. Indeed, you will take almost every possible step to protect your property. Because of this, a large number of homeowners are looking forward to purchasing home insurance in Dubai.
However, home insurance is available in multiple shapes and forms, while each of the plans gives different types of benefits depending on the company you choose. Thus, you have to choose the appropriate insurance policy, as we have discussed in our blog post.
Overview of Home Insurance
Home insurance refers to a specific type of property insurance, in which a policyholder remains covered for losses and damages, which may take place in his/her home. The insurance in this case mainly covers external and internal damages, while in some of the cases; it covers the loss of an individual’s personal items, especially the precious ones.
Factors to Choose the Right Policy
Maintain Accuracy in Your Valuation
In some situations, we find that the actual value of a residential unit and its valuable possessions are different from the one available under a specific home insurance policy. You may come across this problem while choosing home insurance, as the premium amount you have to pay depends mainly on the valuation of the respective property. If you choose to over-estimate your property, you may end up paying a relatively higher amount of premium than the one needs actually. In contrast, if you undervalue the property, the compensation you will receive from an insurance company in the case of water damage, fire breakout or any other adverse event will be significantly less than you require.
Focus on Specific Details Present in Your Insurance Policy
While reviewing the home insurance in Dubai, you should make sure pursuing thoroughly each of the lines. In some cases, a line indicates one thing to you but in reality, it implies something different. For instance, if a line mentions coverage of each of your household goods, you may think each of the items present in your premise will remain covered. However, household goods in terms of insurance policy will exclude electronic devices present in your home. Thus, you should ask questions and raise doubts to search for a home insurance policy offered by various companies operating in Dubai.
Differentiate Between Personal Possessions Cover and Home Contents Cover
Most of the time, homebuyers and homeowners get confused between the two terminologies i.e. personal possessions cover and home contents cover at the time of buying home insurance in Dubai. For this, experts have said-
Home contents cover to insure you for the valuable articles present in your property against all sorts of damages. Here, the items always remain important parts of your home for all time. On the other side, personal possessions cover valuable articles usually carried by homeowners with them to safeguard from theft and other damages. For instance, the laptop and the smartphone carried by you daily categorized under personal possessions’ coverage. Along with this, you should essentially know that the personal possessions coverage is costlier than the home content type of coverage. Thus, ensuring your mobile or laptop, which you use indoors during a personal possession cover will force you to bear a huge cost and that too without any or little benefit. Thus, you have to review each of the guidelines related to home insurance covers carefully to find whether your chosen insurance policy will be useful to you in the near future or not.