Guide to tenants home insurance

1. Don't over-insure

When taking out a home insurance policy, it is likely that you may end up paying for cover that you don't need. It is important to check with your insurance agent to determine which policy will work best for you and your home, ensuring that you don't pay for unnecessary benefits. Make sure the cover is tailored to suit your needs.

2. Choosing the right cover

Determining what is and what is not covered in your policy will help you decide whether additional coverage is needed. Omar Saleem Asghar, head of wealth management - retail banking, Mashreq, says, "Under [our] policy, we cover contents, including household goods while they are on the premises, and personal belongings such as cameras you may take outside."

3. Additional coverage

If you own expensive items such as jewellery or electronics, check if they are covered, as they may require additional coverage. For Mashreq, the single item limit for contents is Dh10,000, while for personal belongings it is Dh5,000; anything above these limits has to be specified in the policy and an additional premium will be applicable, says Omar.

4.‘New-for-old' replacement

"A new for old insurance cover ensures that damaged items are replaced with new ones. This means that there is no depreciation for wear and tear, provided the sum insured is at new replacement value. All items will be replaced on a new-for-old basis (except for clothing, where a wear and tear deduction may be made), advises Omar.

5. While you are away

As well as taking precautionary measures, you can opt to insure your possessions while you are away. However, if you are travelling for a longer period, you need to make sure that you abide by the terms and conditions mentioned in your policy to make a valid claim. Most providers cover unoccupied premises for up to 60 consecutive days.

6. Fire, flood or theft

It is important to find out which incidents are covered as these cannot only destroy your home, but also burn a hole in your pocket. Most policies cover fire, theft or vandalism. If you live in an area that is susceptible to flooding or earthquakes, make sure your policy covers damage caused by natural disasters.

7. Key cover

If your keys are stolen, check if the insurance firm will cover the cost of replacing your locks, safe or alarm system. Most quality home insurance policies provide cover, while some offer up to a specific amount. "Replacement and installation of locks, including keys, are covered up to Dh500 under [Mashreq's] home insurance policy," says Omar.

8. Home staff liability

Check whether your home insurance policy factors in personal accidents and medical expenses cover for domestic staff working in your home. For Mashreq's home insurance policies, "Liability cover for domestic staff and loss of documents are optional and come with an additional charge," says Omar.

9. Bundle policy discounts

Many insurance companies offer discounts to their clients who maintain other insurance contracts such as health, life or auto with them. Consider obtaining a quotation for other types of insurance from the firm that is offering you home insurance. There is always a possibility that you will be able to save money on two annual policy premiums.

10. At your service

Confirm if your provider offers a 24-hour helpline service, as most banks offering insurance policies have their claim services division managed by partner insurance companies. It is advisable to check if their call centre services are available 24x7.