Like most insurance, it never feels like a necessity until something goes wrong. Home insurance can give you protection for items in the home and outside the home, such as expensive jewelry. So for me, it is a necessity.
I’m not sure I would call home insurance a necessity, it’s very handy but I don’t think I will bother investing in it.
I think its best to have home insurance, as with lots of insurance its best to have but not need rather than need but not have
Here are the different types of home insurance, as you can see the over varies massively so picking the right cover will be key to making home insurance a sensible investment and making sure you are not going to be stranded not being able to replace your belongings should the worst happen.
Most insurers will have a bottom-of-the-range or entrance tier which offers basic coverage on the contents of your home – up to a certain value. Some insurers will call it the ‘Bronze’ tier, or have another name for it, but the thing to know is that, at this level, the idea is to gain some coverage as cheaply as possible.
Typically, with a cheaper tier, you’ll get coverage on your contents up to around AED 50,000. Within that number, though, you’ll have specific limits for things like electronics or jewellery. What if, say, the contents of your home amount to AED 50,000, but AED 40,000 of that is jewellery? At this level, you may only get coverage for AED 15,000 worth of jewellery, so be sure to check that before signing on the dotted line.
On top of the contents value limit, some insurers will still offer added perks for signing up at the entry level. You could be looking at around AED 1 million in occupier’s personal liability, or else coverage for a second medical opinion. Indeed, these extra perks are often the way that insurers differentiate themselves, so be sure to shop around for the best deals.
As the name suggests, the mid-level tier is an in-between offering that costs a little bit more than standard coverage, but offers more benefits. Typically, the main benefit will be coverage on a great value of contents. So instead of being covered for AED 50,000 worth of contents, you might get coverage for AED 100,000 worth of contents. You’ll also be looking at greater flexibility when it comes to different types of contents – for example, your jewellery allowance may be much more generous with a mid-range offering.
The added benefits also tend to be better at the mid-range. You may get more options for second medical opinions, or your occupier’s personal liability may be raised to an even greater amount.
Naturally, you’ll have to pay a greater monthly premium to take advantage of the mid-tier benefits. But before dismissing the idea of paying more, it’s worth considering that most mid-tier offerings are only slightly more expensive than entry-level options, meaning the protection that you get at the other end could be well worth the added investment.
Top of the range
If nothing but the best of the best will do for you, then this is the type of coverage to consider. With these options, you pay quite a lot more as a monthly premium, but you’re pretty much covered on anything. What’s more, your contents insurance could extend to AED 300,000 and above. So if you own plenty of expensive belongings, this is the one to go for.
Whichever tier you choose, though, be sure to compare quotes – and the sorts of coverage available – before you buy. Using the button below, you can easily find the right home insurance for your needs.
I buy home insurance every year, it’s just not worth the risk of not being able to replace your possessions. It’s a small amount to pay to secure your belongings.