You did the responsible thing. You bought “Home Contents Insurance – All Risk.”
The title sounds promising. “All Risk.” That means everything, surely?
Then, in the peak of July heat, your AC unit groans and dies. Your villa becomes an oven.
You call the insurance company, confident they will pay for the new compressor.
They politely listen, ask for the model age, and then say: “Sorry, not covered.”
Insurance is for Accidents, not Maintenance. This distinction is where 90%
of claims fail. Here is a guide to what is definitely NOT in your policy unless you bought a very specific,
expensive add-on.
1. The “AC Breakdown” Heartbreak
In the UAE, the AC unit is the most critical organ of the house. It works 24/7/365. It gets tired.
The Rule: Mechanical Breakdown
Standard home insurance covers “Accidental Damage” (Fire, Theft, Flood, Lightning).
It does NOT cover “Internal Mechanical or Electrical Breakdown.”
If your AC motor burns out because it is 7 years old and full of dust, that is “Wear and Tear.” That is
your problem as the homeowner (or tenant). Insurance will pay ZERO.
The Exception: If a Fire starts in the AC unit and burns the wall, the
insurance covers the Fire Damage to the wall. But usually not the AC unit itself which started
it.
2. The “30-Day Empty” Rule (The Summer Vacation Trap)
This is the classic Expat trap.
You leave Dubai for the summer. You go back home or travel to Europe for 6 weeks (45 days) to escape the
heat.
While you are gone, a pipe bursts in the bathroom. It floods your house for 3 weeks before the maid discovers
it.
The Shock: The insurer investigates. “When did you leave the country?”
You show your passport stamp: June 1st.
The damage happened July 15th (Day 45).
Claim Denied.
Most policies have an “Unoccupancy Clause.” It states that cover is
Suspended if the home is left uninhabited for more than 30 (sometimes 60) consecutive days.
The Fix: Before you travel, email your broker. Tell them: “I will be away for 60
days.” They can extend the cover for a small fee (e.g., AED 50). If you don’t tell them, you are
uninsured.
3. Maid Theft (The “Lawful Presence” Clause)
We trust our domestic helpers. They are part of the family. But sadly, theft happens.
Standard insurance covers “Theft by Forcible and Violent Entry.” (A burglar smashing a window).
If your maid packs her bag with your jewelry and leaves for the airport, there was no “Forcible Entry.” She
had a key.
This falls under “Theft by persons lawfully on the premises.” Standard policies EXCLUDE
this.
The Fix: Look for the “Domestic Helper Cover” or “Fidelity Guarantee” extension.
It usually covers up to a limit (e.g., AED 20,000) for theft by staff. Without this specific line item,
key-holder theft is not covered.
4. The “Single Article Limit” (Jewelry)
You have AED 200,000 contents insurance. You lose a Rolex worth AED 40,000.
The insurer sends you a check for AED 5,000.
Why?
The Inner Limit: Most policies have a cap on “Single Items” of Valuables (Gold, Watches,
Jewelry) unless they are Specifically Declared.
- Undeclared Item Limit: Usually AED 5,000 or 5% of Sum Insured.
- Declared Item: You must list the Rolex, Serial Number, and Value specifically
on the policy schedule.
If you didn’t list it, you don’t get full value.
Case Study: The “Wall Crack”
You notice a crack in your villa wall. Is it covered?
| Cause | Covered? | Reason |
|---|---|---|
| Storm | YES | “Storm” is an insured peril. |
| Car Crash | YES | “Impact Damage” is covered. |
| Settling / Subsidence | NO | “Subsidence” (ground moving slowly) or “Settling” (new building moving) is excluded. |
| Poor Construction | NO | “Defective Workmanship” is excluded. Sue the builder. |
The Lesson: Insurance covers Sudden Events. It does not cover Slow
Deterioration.
FAQ: Coverage Clarification
Q: Does my insurance cover damage to my garden / trees?
A: Rarely. “contents” usually means items inside the home. Garden furniture might be covered, but
plants/trees destroyed by a storm are usually excluded.
Q: I lost my wedding ring on the beach. Covered?
A: Only if you have “Personal Belongings” (Worldwide) cover. If you only have “Contents
inside the Home,” then losing it outside the front door is not covered.
your broker today to “Specify” it on the policy. It costs a tiny bit more, but it ensures you get paid.