Insurance operations in UAE are divided into the following classes
o Life Insurance: This covers all insurance operations connected with human life and related risks.
o Saving and accumulation of funds: This covers all insurance operations based on issuing documents, certificates and the likes, by which the company is obliged to pay a specified sum or sums of money at a subsequent date against payment of one or more periodic premiums.
o Accident and Liability Insurance: This covers insurance against damages resulting from personal accidents, work accidents, burglary, dishonesty, vehicle insurance, and civil liability insurance, engineering insurance and other forms of insurance by which common practice or custom come under this class of insurance.
o Fire Insurance: This covers insurance against damages caused by fire, explosions, natural phenomena, all kinds of civil commotions and other forms of insurance by which custom or common practice are included under fire insurance.
o Land, sea and air transport insurance: This covers the insurance of cargo and other movables like freight charges, ship and aircraft hulls, machinery and insurance against risks incidental to their construction, manufacture, use, repair or docking, including damages which afflict others, and other forms of insurance by which custom or common practice fall under this class of insurance.
o Other classes of insurance: This covers insurance against all risks which do not fall under the above classes.
There are ways to make sure you have the protection you need:T
o You need to estimate how much your house would cost to completely rebuild it. Using a national sophisticated cost data to calculate the replacement cost of your home is an important service that your insurance company can offer you.
o We recommend you also consider purchasing “inflation” protection, which adjusts your limits annually to reflect any increase in value due to inflation.
o We also suggest that you add guaranteed replacement cost on your policy so in case of loss, the insurance company will replace your house, other buildings, and personal property without any deductions for depreciation.
Use this list before you buy a home insurance:
1. Check the ‘limits’ and cover on your insurance policy for Accidental damage, theft or loss and worldwide cover.
2. Ensure the company explains rebuilding cost of your villa so you do not over insure and pay too much - they may be able to recommend a qualified property surveyor.
3. Does the cover extend to cover contents when being moved?
4. Understand the claims procedure and the excess (the amount you need to pay towards each claim) payable under each section.
5. How reputable is the company providing the insurance?
6. Does the company operate a customer service facility outside normal office hours?
7. For your valuable items, ensure the company specifies such items on the policy so there can be no dispute on value in the event of a claim.
