When signing up for key insurance policies, an important insurance that should not be missed out on is Content Insurance. Many people assume that your regular home insurance also covers loss of their contents also. Because of this, many people are unprepared to fully deal with the consequences of damages to the contents of their property, which can be easily avoided by making a small payment towards content insurance every year.
Content insurance is a specific type of home insurance providing protection to policy holders against loss of contents and personal belongings.
Contents include household goods belonging to you like furniture and fixtures situated within your home. A number of insurance companies also provide worldwide coverage for personal belongings that include watches, jewellery, laptops and mobile phones amongst others.
Protection is usually against losses caused due to events like fire, lightning, earthquake, water leaks, flood and so on.
A comprehensive home insurance covers not just the belongings inside the property but also the physical property itself. Especially harm that is caused to walls, ceilings, floors, etc. that are caused by natural catastrophes such as fire, earthquakes, lightning and floods are covered under such Insurance policies. However, it is important to know that most insurance policies will not cover harm caused by wear and tear or damage done by terrorist activities.
Insurance companies also provide additional coverage for:
– The value of rebuilding or repairing your home following the incident
– Claims made by your domestic help or any other third party for any loss or injuries suffered by them
– Unexpected damage to your goods while moving to a new home
– Expenses for alternative accommodation in the event of an incident at your home
Pricing and application procedure
The pricing of a content insurance policy is usually based on the value of contents being insured. For instance, insuring contents worth AED 75,000 in the UAE will usually cost you an annual premium of as little as AED 220. The higher the value of your contents, the higher the premium.
You would need to submit your application along with documents such as your passport copy, visa and Emirates ID copy to your insurance company. You might also be required to make a declaration of items having values beyond the specified limits to your bank. Then all you need to do is start making your annual premium payments to the company.
How to make a claim?
Contact your insurance provider immediately at the occurrence of the event. You would generally need to pay an ‘excess’, the amount of which is dependent on the section you are claiming under. Contents usually have a standard excess of AED 250 while buildings have an excess of AED 1000 to be paid to make a claim.
Insurance companies may pay the cost of repair or replacement for covering the damages. Alternatively, few may choose to replace the damaged item. Also, companies usually restrict the total claim amount for a single incident or a single item.
There may be exclusions in your policy such as:
– Loss or damage that is deliberate or caused due to criminal action
– Damage arising from wear and tear
Again, this depends on the insurance policy selected and it is advisable to read the terms and conditions of your policy before opting one.
Have a meeting with your insurance representative and choose a suitable plan that fulfills all your needs. As you can see, a small investment made in an insurance policy can go a long way to protect your valuable contents and personal belongings in the future.
If you are looking for a new home, don’t forget to look at great home loan options at Dubai Finance.