Imagine this, we’re standing huddled in a cramped ATM, trying to figure out expenses for our first day of vacation. While your hand tires from your purse and the million things you stuffed into it, your phone falls dramatically to the floor. Picking it up, the entire screen is cracked. Today is just not your day. You woke up to find the sofas of the newly rented apartment painted with bright red smiley faces by your youngster. To make matters worse, your new & beautiful outdoor grill is broken. And now, your phone. The attention-seeker. What a dramatic thing! Well, I don’t have to imagine this as it’s exactly what happened to me a few years back.
It’s happened multiple times actually.
As an iPhone user, my screen costs around 800 DHS to replace. A ruined sofa, a broken grill. Don’t even want to add those replacement costs up. Did you know there’s a way to get around these annoying price tags? Home insurance. You read that right folks, home insurance. I know what you might be thinking (because I thought it too). Doesn’t home insurance cover the “home,” specifically my own home rather than a rented one? Although you’re renting the place, you don’t need to rely on the landlord to fix the rented sofa, the broken grill, or the pesky attention-seeking phone; your personal valuables are protected and covered as a renter (at a quarter of the price might I add).
Types of Home Insurance
There are over eight different types of home insurance. Today, let’s briefly dive together into the various categories of home insurance (it’s a much more interesting subject than I originally imagined tbh). For the UAE population, 70% of which rent rather than own property, let’s delve into the two relevant categories. Let’s clear what offerings are available for home-renters versus for home-owners and the common misconceptions.
- Contents Coverage: Content/Belongings Insurance: This is the moment we’ve all been waiting for, my favorite underdog category. *Drum-rolls please.* Contents coverage which covers, well it’s in the name, the contents of a home. Think that pesky phone, the guitar you bought during quarantine, the new grill, they all fall under content coverage. Cool, right. These are all your personal belongings, they do not belong to the landlord nor the homeowner, and accordingly, their safety is in your hands.
- Dwelling coverage/Building Insurance: This is the insurance people generally think when the term “home insurance” is referenced, but it’s just one type. Targeted at protecting the structure or the skeleton building, building insurance covers the fixtures and fittings of a building (villa, apartment, etc.). Think of the roof, walls, floor, etc. When UAE residents were surveyed for the alarmingly low home insurance rates (just 11% of the UAE owns home insurance) the top-most common reasoning is “this is the landowner’s role.” Generally, they’re referencing this category of insurance as it’s usually conflated as the only home insurance. This category is, factually, for the landlord and/or homeowner. So, the respondents aren’t wrong for their reasoning, just misinformed about the other categories. That’s why I’m here, to tackle that exact misinformation.
Stay With Me Now, Why is This Relevant?
I know you’re leaving me as we get more serious, so let’s delve into another scenario, this time imagine a flooded bedroom (sadly, I don’t have to imagine that either, I’ve been there, again, multiple times) and how much it’d take to replace the furniture. A UAE-based financial comparison company conducted a study and found it would cost at least Dh28,000 to replace the furniture of an average one-bedroom apartment in the UAE. Now compare that to the starting 200 DHS price with Hala home insurance. That’s 0.7% of the price! Less than 1%.
Now, again, I know what you’re thinking, my phone may fall but when will my home ever flood. Well, I thought so too but I stand corrected. More seriously, however, the threat of floods, fires, and just general breakage of furniture (take a look at our fast furniture take) is more common than you might expect. Next week we’ll tackle statistical relevance, continuing our journey of breaking down misconceptions about home insurance.
Until then, protect your phone or your bedroom at a significantly small fraction of the price (starting at just 200 DHS) and let Hala save you money. Save yourself money and pain, join the waiting list now.