Moving into a new house is an exciting phase for many. The planning begins well ahead with your thought hovering over even the small items in the house. You splurge thousands to purchase the dream sofa or spend endlessly on designing that dream room for your tiny tot. But at the end of the day have you thought about the safety of your house and its belongings? Is your house safe from fire, burglary or any other unforeseen situation that might arise? This is where home insurance comes into picture. Even though it is not mandatory to buy home insurance unlike car insurance, it is always advisable to buy a policy for peace of mind.
If you haven’t already, before reading ahead you should read our other blog post that highlights all the details you need know about the 3 types of home insurance in the UAE.
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Below is a list of five important details to keep in mind when opting for home insurance:
- Be sure the right person buys the insurance: Home insurance should always be bought by the person who has a legal relationship (i.e. the landlord or the tenant) with the property that is being insured.
- Opt for adequate coverage: It is highly recommended to insure all the high priced items of your house – that basically means anything that will cost you a fortune to repair needs to be insured. Insurance premiums for home contents insurance are calculated based on the value of the insured items. You can lower your premium if you choose minimal coverage, but if there’s an accident you may incur additional costs for not being fully covered. You should also remember to inform your insurance company of any new items you’ve bought and would like to add to your coverage plan or if there’s a change in your property’s structure.
- Value your property and belongings correctly: When going through the valuation process be sure to remember not to use the book value of the item or your property. The value of the insured item should be calculated on reinstatement basis (i.e. the amount you would pay today to get the item replaced or repaired).
- Examine the documents carefully: Always read your policy coverage documents thoroughly! Make sure that all your information in the document is correct to avoid unnecessary delays in claims processes. Even a small spelling error in the name or address can cause a delay, while incorrect information can result in the insurance company withholding claims.
- Keep proof: Always keep a photograph of your personal belongings and property, so that it can be used as proof if needed in the future. Similarly, file and keep all concerned bills and documents related to the insured item so that it can be produced and presented without any delay.
Just like any other type of insurance, it is wise to do a comparative study before finalising on a particular insurance company. On ServiceMarket we make this simple. All you have to do is provide us with your details and you will instantly be able to compare home insurance policies from multiple insurers. You can then select your preferred home insurance policy, pay online, and get your policy within an hour!