In the UAE, as in most countries, you are legally mandated to take out property insurance when your house is in escrow.
There are two types of house insurance plans:
- Basic
- Comprehensive.
Basic plans cover things like fire damage, theft, and vandalism.
Comprehensive plans offer earthquake, flood, and third-party liability coverage in addition to the basic plan. When a house is in escrow only a basic plan is needed.
However, as a tenant, you can also purchase additional contents insurance. Content insurance is coverage for electronics and high value items in the house in case of theft or vandalism. You’ll need to Calculate the value of the belongings you store in the house and negotiate with insurance providers.
Homeowners who have paid off their mortgages or settled their purchase without a mortgage are still encouraged to take out an house insurance and protect their property from damage while protecting themselves from a heavy financial burden.
The UAE has a reputation for being safe and natural disasters aren’t common. However, fires and floods due to leaky pipes can can happen anytime anywhere. Keep in mind, in case of emergency homeowners can be liable for the damage caused to neighboors property aswell. Home insurance can build financial security and bring peace of mind for investors.
Be sharp-eyed when searching for a provider and compare coverage, costs, and customer
service ratings between providers before settling on one. Installing deadbolts, smoke detectors,
and anti-burglar alarms can lower insurance premiums. Loyalty discouts are sometimes
available when you have car or life insurance taken out with the same provider.