Is Your Car Insurance Going to Cover Flood Damage?

January 21, 2022

Wondering whether or not your car insurance providers cover damages caused by rainfall and flooding? You’ve come to the right place.

UAE winters call for lower temperatures, strong winds, and rains. Although this may sound like the perfect weather to sit outdoors and enjoy some hot Karak; the rainy season might not be ideal for your car. Rain and floods are a rarity in the UAE, but your vehicle and home need protecting during these rare situations. 

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Rainwater may clean your car to some extent, but it does more harm than good to your car. Here are some reasons why: 

  • Rainwater contains harmful pollutants that can damage your car’s paint
  • Moisture can lead to mildew and mold formation 
  • If rainwater enters critical parts of your vehicle, it can result in damages to it’s electrical components
  • Rain often leads to accidents 

In a survey, 77% of UAE residents are unaware of whether or not their insurance providers cover damages caused by rainfall and flooding. For this reason, we decided to shed some light on this topic; so that car owners get the most out of their motor insurance policies.

Are all car insurance policies the same? 

Most car insurance companies provide comprehensive car insurance and third-party car insurance policies. But only comprehensive car insurance policies cover damages caused by natural calamities such as rains and floods to your car. Some insurers specify that flood damage is covered only if your vehicle is parked and not driven during a flood. Additionally, you need to file a police report to submit a claim surrounding rain damages caused to your car. To make the most of your comprehensive policy, we advise that you go through the fine print and understand the extent of coverage provided.

Third-Party Car Insurance only covers damages caused to the other vehicle and passengers in the event of an accident. You will find this type of car insurance has a considerably lower premium since it covers significantly less than comprehensive insurance. Consequently, this insurance policy does not cover damages caused by natural calamities such as floods. 

[Related: Car Insurance in UAE: Important Things You Need to Know ]

Are damages covered under car insurance if the car is driven in flood?

Some insurance providers cover damages caused by rain or flooding as long as the vehicle is not driven. If it is evident that your car was driven rather than parked during a flood, your claim can be denied. Before acquiring a policy, it is a good idea to ask for an explanation. Most insurance firms will clarify whether the car should be parked or driven to approve the claim. 

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The flood is a ‘natural disaster.’ 

Most comprehensive insurance policies usually cover damages or losses incurred due to natural calamities. However, if the country declares the phenomenon a natural disaster, your insurance provider might not cover the damages. Nevertheless, some insurance companies can extend their coverage to damages caused by natural disasters and assess claims on a case-to-case basis. Going through your insurance policy and paying close attention to the fine print can save you time and money during such instances. 

Flood claims, what is the financial coverage?

The extent of financial coverage has a limit based on the car’s insured value or the lowest market value. Suppose the cost of repairs exceeds 50% of the car’s current market value or the damages are beyond repair. In that case, the insurance company may declare the vehicle a total loss and compensate the policyholder according to the policy’s conditions.

If you are insured with Hala 

As long as the car is parked, Hala’s comprehensive car insurance policyholders are covered from damages caused by natural calamities such as floods. If the government announces the flood as a natural disaster in an official countrywide statement, the claims team will consider your claim for further review (terms and conditions apply).* 

Claims procedure for flood damage with Hala 

Step 1: 

Prepare your documents – your vehicle registration, valid driver’s license, and original police report indicating damages caused to your vehicle

Step 2: 

Ensure all the documents and information provided are correct before submitting. Log In and upload your documents to register a claim

Step 3: 

Sit back and relax! We will take care of the rest for you. 

Are you looking for car insurance? 

If you are looking for a quick, transparent, and affordable policy with extensive coverage and benefits, we suggest you take up a comprehensive car insurance policy. 

Need more guidance on selecting the right insurance policy for your car? Let Hala help you through the process and protect your vehicle for you!

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