When it comes to protecting your home and personal items, contents insurance in the UAE can provide reassurance by insuring your belongings against damage, theft, or unexpected accidents. Yet, most policyholders ask themselves if their contents insurance covers high-value items, like jewelry, electronics, or artwork. In this blog, we will be writing about the jewelry and valuable possessions cover in contents insurance policies in the UAE, and how you can make your valuables absolutely safe.
What Does Contents Insurance in the UAE Cover?
Contents insurance in the UAE generally extends to household and personal belongings that are within your home. These encompass furniture, electronic items, clothing, appliances, and most personal belongings. In short, if something in your home is damaged or stolen, contents insurance will generally help you recover the item’s value subject to the policy conditions and terms.
But contents insurance usually has limitations on how much it will pay out for certain items or groups of items. With personal luxury items, such as jewelry, the insurance can often be insufficient to replace or reimburse you for the actual value of these high-end items.
Does Contents Insurance Cover Jewelry in the UAE?
Jewelry is one of the most valuable possessions found in homes but is typically with restrictions under contents insurance policies, which are typically standard. While the majority of insurers in the UAE offer an upper payment for jewelry under standard contents insurance, averaging AED 5,000 to AED 10,000, depending on the company, this amount may not adequately cover high- or high-value pieces of jewelry.
For example, if you possess a AED 50,000 diamond necklace, the standard contents insurance would only cover a minor fraction of its actual value and leave you having to pay it yourself.
Considerations:
Minimum payouts: Paying out jewelry when taken in conjunction with the standard contents cover is usually a low amount.
Exclusions: Most policies exclude or restrict coverage for jewelry that is kept outside the home (e.g., in a safe deposit box or worn while traveling).
Theft or damage: Theft of jewelry, particularly where there is no forced entry, can not be fully covered under standard contents insurance policies.
How to Insure Expensive Jewelry in the UAE?
If you have precious jewelry or other valuable belongings, you may require special insurance to ensure that they are completely covered. Here is how you can ensure your valuables are covered:
Add a Specific Jewelry Rider or Endorsement
Some insurance providers offer the option to include an addition of a rider (also known as an endorsement) on your contents insurance policy. This rider, in turn, covers valuable items like jewelry, watches, and paintings. Having a jewelry rider allows you to cover your prized possessions for their full value, rather than being limited by the payout terms of a regular contents policy.
Provide Appraisals or Valuation Certificates
Your insurer can ask you to give an appraisal or valuation certificate for every valuable item you wish to insure. This makes certain that the proper value of the item is established, and that your cover reflects its actual value. Get your jewelry professionally appraised periodically, since precious metals and gems can fluctuate in value over time.
Safe Storage Facilities
For added peace of mind, there are insurance policies that will cover more if jewelry and other valuables are stored in a secure location like a safe or a safe deposit box. Make sure to ask your insurance company how the storage of your valuable items can impact your coverage.
Worldwide Coverage
If you are frequently on the move and would prefer to know that your jewelry is covered wherever you are, then you can obtain worldwide cover. Some contents insurance policies cover personal jewelry outside of the home, but others will require you to purchase an additional travel insurance policy to cover valuables while overseas.
Is Contents Insurance Available for Other Valuable Items?
As with jewelry, other luxury items like collectibles, art collections, and designer electronics may not be fully covered under ordinary contents insurance. If you have valuable collectibles or artwork, you need to review the exclusions and limits of the policy.
In most cases, there are insurers who can offer special coverage for extremely valuable items such as antiques or artwork, which would be added to your policy as a rider or endorsement. The policies can insure the full value of your items, providing you with sufficient protection for such valuable items as rare paintings, sculptures, or old wines.
Why You Need Specialized Coverage for Expensive Items
While standard contents insurance in the UAE will cover most of your belongings, jewelry and other valuable personal items typically need additional cover. The exclusions and restrictions on standard policies mean that high-value items may not be fully covered if they were stolen, damaged, or lost. If this were to occur, you may find yourself being seriously out of pocket.
By employing a specialist rider, such as valuation certificates, or by having your valuables secured, you can ensure that your jewelry and other valuables are fully covered.
Conclusion:
UAE contents insurance is a vital way to protect your possessions, yet when it comes to jewelry and luxury items, it is vital that you are aware of the exclusions and limitations of your policy. For valuable items, it may be worth considering taking a rider or endorsement on your contents policy to cover your jewelry and other valuables in particular. Make sure you check the individual terms and conditions with your insurer and that you keep proper appraisals and secure storage for your valuable items.
By taking these extra measures, you can be confident that your property, including your precious jewelry, is safe in the event an unfortunate accident occurs to you.
