Home Is Where The Insurance Should Be: A Relatively Low-Cost But Powerful Safety Net

The UAE is often ranked among the safest countries in the world, with smart policing and impressively low crime rates. Yet when it comes to protecting your biggest financial asset - your home - safety is only part of the story. Fires, floods, electrical faults, and accidental damage can strike anywhere. That's where home insurance comes in: a relatively low-cost but powerful safety net that too many residents overlook.

For many expats, the first instinct is to dismiss home insurance as unnecessary in such a secure environment. But the reality is that most claims have little to do with burglary. Instead, insurers in the UAE report that fire and water damage top the list of causes. Whether it's a burst pipe that destroys furniture, or a kitchen fire that renders your apartment uninhabitable, the financial cost can quickly escalate.

“A comprehensive home insurance policy offers protection on two essential fronts,” explains Neeraj Gupta, CEO of Policybazaar UAE.“It covers the structure of the property against risks such as fire, burst pipes, accidental damage, and natural disasters, and it safeguards the contents of the home, including electronics, furniture, jewellery, and other personal belongings.”

Gupta adds that many plans also include burglary and theft cover.“This goes beyond replacing stolen items to also cover damage caused during the incident, such as broken doors or windows, and even the cost of replacing locks, keys or alarm systems.”

What tenants need to know

If you're renting in the UAE, your landlord's policy will typically cover the building structure, but not your personal possessions. Without your own contents insurance, you could be left paying out of pocket if your laptop is stolen or your wardrobe is ruined by water damage.

Divya Mandke, Unit Head, General Insurance, Personal Properties & Life, at Insurancemarket, says tenant queries are among the most common she receives.“People often ask: 'Should tenants in the UAE purchase home insurance?' and 'What's the difference between contents and personal belongings?'” she notes.“The majority of claims we see are related to fire incidents and water damage. Theft claims are rare here, but we do occasionally receive claims for loss of valuables like watches or jewellery when clients are travelling abroad.” For tenants, a modest policy can cost as little as AED 1–2 per day, making it an affordable way to secure peace of mind.

Homeowners face bigger risks

For homeowners, the stakes are even higher. While home insurance isn't legally required in the UAE, most mortgage providers insist on it before approving a loan. The reasoning is simple: they need to protect their investment-and by extension, so should you.

Even if your property is mortgage-free, failing to insure it could leave you with an enormous repair bill. Structural damage from fire or flooding is expensive, and without cover, you risk dipping into savings or taking on debt to recover.“Insurance is not about how often an event happens, but about reducing the financial impact when it does,” Gupta emphasises.“The premium for a year's cover is a fraction of what a single claim could cost.”

One of the strengths of the UAE insurance market is its flexibility. Policies can be customised to include just buildings coverage, just contents, or a blend of both. Add-ons may include:

. Liability protection (if someone is injured in your home)

. Alternative accommodation (if your property becomes uninhabitable)

. Cover for domestic helpers

. Extended protection for valuables such as jewellery, luxury handbags, or artwork

Mandke says fire-related damages are automatically included in standard home insurance, while personal belongings cover typically extends to items lost or stolen outside the home.

High net worths

While standard policies are sufficient for most households, the UAE is home to a large number of high-net-worth individuals with unique needs. Moinuddin Lakdawala, Head of Private Clients Practice at Insurancemarket, explains:“Regular policies won't be able to take on personal belongings over Dh500,000 due to underwriting restrictions, which pushes clients towards private client plans.”

These bespoke policies can cover everything from high-end jewellery to fine art, with few caps on value.“There's usually a single article limit of Dh50,000 for jewellery, but as long as it's listed, it's covered fully,” Lakdawala says.“The most expensive item I've insured was a Richard Mille watch worth around Dh2.5 million. The most unusual? Pokémon cards.” For the wealthy, such policies aren't just about protection but also lifestyle management - ensuring prized collections and investments remain secure, no matter what.

The UAE's safety record can create a false sense of security, but as insurers point out, risk is never zero. Opportunistic theft, forced entry, or a household mishap can happen anywhere. The emotional toll of losing personal possessions is bad enough; adding an unplanned financial burden only makes matters worse. As Gupta summarises:“Having comprehensive home insurance ensures that when the unexpected happens, families can recover quickly, without long-term financial or emotional strain.”

MENAFN11092025000049011007ID1110050274