Being an informed customer doesn’t just mean reading your home insurance policy carefully. It also means asking your home insurance company the right questions so you can choose a policy that best suits your coverage needs and budget. The best thing about buying home insurance on ServiceMarket is that you can compare quotes and coverage options from multiple companies at once. Here are some questions that you should think about when choosing the right home insurance policy for you:
What is included in the home insurance policy?
There are three types of home insurance policies in Dubai. The different policies cover different areas: the structure of your home, the contents inside it and your personal belongings. Your coverage needs depend on whether you are the building owner or a tenant. If you are a tenant, you might mistakenly assume that because your landlord has insurance so you don’t need to worry. This is not correct. Even if your landlord purchased a home insurance, the policy will not cover your personal belongings. In case of an unfortunate event such as a theft or fire, your possessions will not be protected.
What is liability coverage and what type of cover do I need?
A typical home insurance policy provides personal liability coverage. It protects you against lawsuits for bodily injury or property damage that you unintentionally cause to other people. Liability coverage covers your legal expenses and if you are found responsible for the damages, may help pay for the cost of the settlement against you,. Depending on the policy, you may also be covered away from home. Keep in mind that personal liability coverage only pays up to a set dirham limit.
What would it cost to rebuild my home and/or replace all my belongings?
Your homeowner insurance policy should cover the cost of building a new home from scratch. Different insurance companies use different calculation methods to determine the cost of rebuilding your home. Since this cost plays a significant role in determining the premium you will pay, it may be worth shopping around before selecting a home insurance policy. Never make the mistake of undervaluing your home or belongings. You don’t want to end up being under insured when you need to make a claim. Do an inventory of your belongings and be prepared to provide details such as proof of purchase.
Does the home insurance company offer Additional Living Expenses or Loss Of Use coverage?
Most home insurance policies cover additional living expenses or loss of use, which pays for extra costs to live while your house is uninhabitable. However, you will only be covered if the reason you can’t live at home is stated specifically in the policy. For example, if you are ordered to evacuate by the government, but the cause of evacuation wasn’t covered under your policy, you will have to pay your living expenses out of pocket. You need to plan for the worst case scenario and determine your monthly living expenses. If the policy coverage isn’t adequate, shop around. You are entitled to maintain your standard of living when disaster strikes.
Is my policy guaranteed replacement or actual cash value?
An actual cash value policy takes depreciation of your home and/or belongings into consideration when reimbursing you for a claim. This means that besides the deductible, you might need to pay some amount yourself to cover the difference if the value of your home or belongings goes down. In a guaranteed replacement policy, the deductible is all you need to pay to get your home re-built or your possessions replaced. The premium for a guaranteed replacement policy is therefore usually higher. Most homeowners opt for a guaranteed replacement policy.
Now that you understand home insurance better, let’s get shopping! ServiceMarket can help you get multiple quotes from reputable home insurance companies in Dubai in a few simple steps.