This article gives you a breakdown of the coverage provided by Home Insurance. The usage of the words, you, your, insured, policyholder refers to you – our client, and the usage of us, we, insurer, refers to the insurance company.
Home Insurance is protection for you and your family. There are various types of coverage available, most are included in the actual homeowners package. There are also other types that can be purchased separately in addition to your policy. The main perils or (causes)of damage, are fire, vandalism, water damage, smoke, theft, flood or falling items. There is additional protection not listed here. This is just an outline of the type of Insurance available.
This is the primary house itself. Anything that is attached to the house like awnings, railings, the roof, windows or a built in bookcase.
Any type of building like a detached garage, sheds, swimming pools, tennis courts, any patios, gates, fencing or hedges.
Contents or Personal Belongings
All your household contents including such items as your couch, bed, clothing, blankets, stoves, fridges etc. Any valuables such as fine arts, furs, jewelry, stamp and coin collections. This coverage will also cover damage to contents in a garage or shed, including some motorized lawn equipment.
Coverage is available for a monetary loss of cash, debit or debit-credit cards. Fraudulent use of any of your accounts. This also includes passports, drivers license and limited costs for identity theft.
There is no coverage for a building you may own that has been left unoccupied for more than 60 days. You should contact your insurer and advise them of this situation prior to leaving it unoccupied. Many insurers will add what they call ‘vacancy permits’.
Accommodation and Living Expense
If your home has been deemed inhabitable, your insurer will pay for any reasonable accommodations and expenses until you can safely move back to your home.
This is the owner’s legal liability insurance. This coverage is used if you are legally responsible for injuring another person or are negligent causing damage to another persons property.
Deductible or Excess
There is a AED $2,000 on most claims presented for an incident that has occurred and is covered by one of the perils on the policy. If a claim should occur, and it is subject to two deductibles, the highest will apply and you will only have to pay the one.
Removal of Debris
We will pay for any type of demolishing, debris from damage to the building or falling trees.
If you damage any local authority property, we will respond within the their guidelines and regulations, and pay any damages in which you are legally responsible.
When you sign a Homeowners Application, it becomes a legal document between yourself and the Insurance Company. You will have agreed, by signing it that all the information is correct.
This is a serious offence to commit with an insurance company. The bottom line, it really is a type of fraud. The Insurance Company could deny a claim because of information that was purposely held back from them. There are to many examples to list, but they are all similar to these.
1. Telling the insurance company that you heat your home with oil, but in fact, your house is heated by a wood stove.
2. Completing the application and not telling them about previous claims
3. You don’t tell them that you have rented out your basement
Material Change of Risk
You have taken out an insurance policy, signed the application correctly stating everything you need to tell the Company. Three months down the road, you decide to build an addition on the home. You don’t bother telling the insurance Company. This would be a material change of risk. The Company insured you for what you had prior to the addition and could deny a claim if you did not inform them of the change.
Whether you are a tenant or a landlord, visit insurancemarket.ae to find the right home insurance solution for you.