What It Costs to Insure Your Home Contents in Dubai and Why You Should Do It

Home contents insurance

Did you know that for as little as AED 250 per year in Dubai, you can protect all your home contents for up to AED 50,000 and have them replaced in the event of fire, flooding or theft. If your home and its contents are uninsured, such setbacks can actually put you back to zero and chances are, it will take a very long time to recover and get back on your feet financially. ServiceMarket has prepared this guide to help you understand home insurance in Dubai and how it can safeguard you in case of unexpected disasters.

What should I know about home insurance?

Home insurance is divided to cover three types of property:

1. Building insurance: If you own your home, this cover will insure the building structure for total or partial damage and other related risks such as damage to personal property due to vandalism or theft, loss of rent or accommodation due to such incidents, replacement of locks and keys, injury to yourself or family inside the house as well as occupier/tenant liability.

Important tip: This cover applies to private residence and the insurance premium depends on factors such as age of the building, rebuilding value, history or risk or damage as well as location.

2. Home contents insurance: This plan applies to both owners and tenants and includes loss or damage to home contents such as furniture, appliances and art.

Important tip: In the event of a claim, for high value home contents, such as handmade rugs, high-end appliances, and musical instruments you will need an appraisal from a certified seller if you do not have the original proof of purchase (e.g., receipt).

3. Personal belongings insurance: Both homeowners or tenants can benefit from this package and it means that all valuables such as jewelry and personal electronics can be replaced in case of loss or damage whether in or outside the home.

Important tip: To determine the difference between personal belongings and home contents, just remember that personal belongings are anything that can be worn or carried on the person – home contents cannot.

How much will home insurance cost me?

The table below contains approximate costs of insuring your home and its contents. For AED 2,500 per year or less, you could insure a villa worth AED 2,500,000, which translates to less than 0.1% of the total value of the building.

Please keep in mind that these are not actual rates, but estimates based on a range of quotes. Annual premiums will vary based on not only the level of coverage, but the level of customer service each company provides. For example, companies where claims agents come to your home to survey damage within 48 hours generally charge more than those who rely on you to lead your own claims process and follow-up with them frequently.

In general, though, home insurance is very affordable, and should be a priority for all Dubai residents.

Typical Premium (as % of total value) Example Value Approximate yearly price (AED)
Building (residence) < 0.1% AED 2,500,000 AED 2,500
Home contents (furniture, art, rugs, etc.) < 0.5% AED 50,000 AED 250
Personal belongings (jewelry, electronics) < 0.5% AED 50,000 AED 250

How can I apply for home insurance?

Beginner’s Guide to Home Insurance in the UAE

Home Insurance

You can compare quotes from multiple insurance providers on ServiceMarket. Simply enter your details to instantly compare Dubai home insurance quotes on the site. Once you decide on your preferred insurance policy, you can make the payment online and receive your policy within the hour!

You can also read customer reviews of the companies before making your decision.

Important tips:

  • Always contact your insurer immediately should any of the specified and insured risk occur.
  • Remember to renew your insurance annually.
  • Better safe than sorry.
  • Contact our customer service team for any further clarification about home insurance.

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