Does Home Insurance Cover Natural Disasters?

What are Natural Disasters?

Natural disasters are devastating events caused by environmental factors that impact people and communities. Common examples include earthquakes, floods, tsunamis, sandstorms, and more. These calamities can result in adverse consequences such as loss and damage of property, loss of life, injuries, and more.

Many areas in the UAE are vulnerable to natural calamities, so it’s crucial to protect your home with a comprehensive home insurance policy.

Does Home Insurance Cover Natural Disasters in UAE?

Yes, home insurance policies in the UAE provide coverage to the home structure and content loss/damage caused by natural disasters, including earthquakes, floods, lightning, and storms.  A comprehensive home insurance plan can provide your property with complete protection, and sometimes, add-ons or riders are required to add to the basic coverage. This means your premium will rise, and in exchange, you will get the extra coverage.  

However, the natural calamities coverage can be different, as each home insurance company has a different set of coverage criteria and determining factors.

Having said that, it’s always a good idea to check the policy’s inclusions and exclusions, along with terms and conditions.

Types of Natural Disasters Covered by Home Insurance in UAE

Let’s take a look at the major natural hazards and whether a household insurance policy can cover them -

1.) Earthquake -

While earthquakes are not frequent natural disasters in the UAE, they can still cause structural property damage, loss of finances, and hefty repair costs.

Many comprehensive home insurance policies provide in-built earthquake damage cover, including protection for both the building and its content. But there are many plans too, where you need to choose riders or add-ons to get the protection of your home against earthquakes.

2.) Flood -

In 2024, the UAE witnessed its heaviest rainfall in 75 years, which caused huge damage to homes and the country's infrastructure, even in the futuristic cities—Dubai, Sharjah, etc. This was a wake-up call for homeowners who haven’t insured their property with the right home insurance coverage.

Home insurance includes flood coverage and covers your property from damages and losses resulting from the same.

3.) Sandstorms -

Generally, sandstorms come under wind or storm damage in the home insurance policy. This hampers external damage to property, such as windows, doors, AC systems, and more. The standard home insurance policies may not cover damage caused due to sandstorms. However it may be covered as an add-on by some insurers. It’s advisable to check the specific inclusions.

4.) Thunderbolts or Lightning

Most home insurance policies cover content and building damage caused by lightning in the UAE. This typically comes under the ‘Fire and Allied Perils’ section, which includes structural property damage, fire caused by lightning, and other content damage.

However, it’s important to review the policy document to fully understand the scope and extent of the coverage.

5.) Heat Waves

The UAE has an intensely hot and arid climate, so heat waves are a common concern among residents. However, long-term exposure to high temperatures causes wall cracks, colour fading, rooftop damage, external property damage, and other issues.

Typically, standard home insurance policies don’t cover these issues as they are considered ‘wear and tear.’ These problems can be best addressed through regular home maintenance or renovation to prevent further damage.

Common Exclusions Under Home Insurance in UAE

The key exclusions of natural calamities coverage in home insurance are as follows:

• Wear and Tear: Home insurance companies don’t include the loss or damage of property due to gradual wear and tear. This is generally caused by prolonged exposure to harsh climates, and the common problems include paint fading, cracking, and more.
• Pollution and Contamination: Any loss or damage to your building or contents is not covered by home insurers in the UAE.
• Faulty Workmanship: If property damage arises due to the use of defective materials, poor design, or faulty workmanship, you cannot make a claim against home insurance.
• Lack of Maintenance: Compromising with the building’s upkeep or regular home maintenance can cause problems for homeowners, as it may lead to barriers while claiming against the home insurance policy.
• Vacant Property: If the home is vacant for a long time (usually beyond 60 days), home insurance companies might not cover the damage or loss caused by certain natural calamities.

How to Choose the Best Home Insurance Covering Natural Disasters?

Here are some points to keep in mind while getting home insurance that covers natural disasters —

• Assess Your Need: When choosing home insurance, it’s important to consider your specific needs. For instance, if you live in natural calamities-prone areas, go for comprehensive plans even if they may have nominally higher premiums.
• Compare Plans: Do online research and find the best home insurance provider in your area and compare their plans. It will give you a clear image to get what you want at the best cost.
• Check the Scope of Coverage: Many home insurance plans in the UAE are providing coverage against natural disasters, but some have limited scope. So, it’s crucial to review the inclusions and check what is covered and to what extent.
• Review Exclusions: It’s the most important thing that you should check before buying home insurance coverage in the UAE. Always check your policy document and understand the exclusions to avoid further disputes while claiming.
• Choose Add-Ons: If your policy does not cover specific natural calamities, check whether any specific add-ons are available for the same.

Factors Influencing Home Insurance Premiums

• Past Home Insurance Claims
• Your Residence
• Property Condition
• Add-Ons

How to Get Your Claim Against Natural Disasters in a Home Insurance Plan? 

If you are filing a home insurance claim for damages caused by natural disasters, follow the steps mentioned below:

• Immediately contact your home insurer to notify them about the incident
• Collect the evidence of damage or loss, such as by clicking photos or videos
• File a claim by providing all the necessary documents to the insurer
• After completing the necessary documentation, a claim investigator may visit your home — provide them with all the requested information
• Once the claim request is approved, you will get the compensation amount for covered damages or loss

💡Tips:

• Ensure your home insurance policy covers various natural disasters
• Pay the premiums on time
• Keep all the policy documents handy

FAQs