Insurance is a hefty word because it holds a lot of importance in our lives. If you want to protect yourself against unforeseeable circumstances and recover your losses, then you need to get yourself insured. From your life to home, everything can be covered by insurance companies that provide compensation for covered losses if and when they occur.
If you live in the UAE, then here are the five basic insurance covers that you must get.
Home Insurance
Do you dread the idea of going for a vacation and coming back to a house that has been wrecked by fire, theft or water damage? Imagine losing all your precious belongings and spending hundreds of thousands of dirhams to fix the damage.
Unfortunately, many residents do not consider getting a home insurance plan when buying or renting property in UAE. However, not having adequate insurance is a huge risk to your valuables. But this risk can be somewhat mitigated with the help of a home insurance cover.
Homeowner’s insurance can protect the property against damage to the building’s structure caused due to fire, flooding, other natural calamities as well as vandalism and other perils. On the other hand, home contents insurance can serve to pay for loss or damage to your furniture, household items as well as personal belongings. A lesser known fact – Home insurance also covers your liability towards third parties that claim compensation for losses or damages.
[Related: How Home Contents Insurance Can Save You A Fortune]
Car Insurance
Buying a new car can be an exciting prospect but not without the right car insurance. While car insurance is mandatory in the UAE, not everyone spends the time and effort to select a policy that’s best for their needs.
Premiums can wildly differ based on the car’s make and age, your driving history and other such factors, and cheapest may not be the best. Undermining the insurance purchase process can get you stuck with an inadequate or simply unsuitable coverage. However, there are many simple and convenient ways to shop for car insurance online where you can compare quotes, evaluate add-ons and read the fine print carefully before buying one.
[Related: 10 Easy Ways to Cut Back On Your Car Insurance Premium]
Travel Insurance
Did you know that as many as 90% of the UAE population is made up of expatriates? Needless to say, it is common for people to spend on at least one outbound travel every year. But how may of us actually buy travel insurance before going back home or on a holiday? And even among the lot that buys travel insurance, how many actually compare their options and do a bit of research to choose an exhaustive travel insurance plan?
It doesn’t matter if you are traveling for leisure or for work, emergencies can occur anytime and travel insurance is the only way to protect yourself from the uncertainty of travel-related risks. Insurer usually cover everything from medical emergencies to flight delays/cancellations and lost baggage among other things.
[Related: Which travel insurance plan is right for you?]
Life Insurance
In a 2016 survey by HSBC, it was reported that the UAE has the highest uninsured population in the world. The survey pointed out that lack of awareness about life insurance is the leading reason why most people do not take out life insurance policies. In fact, majority of the respondents assumed it was the responsibility of their family, employer or the government to provide such coverage.
Opting for life insurance may seem like a huge personal financial investment at first but it can play a huge role in securing your family’s financial future in case of a tragic event that leads to your death. Life insurance plans come in a variety of options like term insurance, whole life insurance, and endowment plans. Each plan has its own benefits and restrictions. Make sure you evaluate the pros and cons and choose an insurance cover that best serves the needs of you and your family.
[Related: Life Insurance: Are you still ignoring it?]
Health Insurance
Health insurance is mandatory for the residents of UAE and the ones who do not have it can be fined up to AED 500 per month for non-compliance. While employers are supposed to provide you a comprehensive health insurance cover, you may have to buy health insurance for your dependent family members as well as domestic help. You must check the quality and extent of the coverage before signing up for a particular health insurance plan.
Don’t know which insurance cover is apt for you? Compare quotes and features of various insurance options on Souqalmal.com, pay securely online and get your policy delivered straight to your inbox.
[Related: Buying Health Insurance in the UAE: More Than Just a Formality]
