Home Insurance-Always be prepared for the unexpected.
Getting home insurance ensures you are protected from
unforeseen threats
Your home is your biggest investment. It houses people and
things that are most important to you. Most of us know all about how our homes
work but are clueless about how our home insurance works. You can legally own a
home without having insurance but that would be rather unwise, leaving your
loved ones as well as your belongings open to the threat of disaster.
Home insurance generally covers three things: structure,
belongings and liability. Structure refers to the building) roof, walls,
stairs, and others).home insurance typically covers fire, water from busted
pipes, damage due to hailstorm, and others. Most insurance policies do not
cover earthquakes and floods, and you have to buy a separate insurance for
that.
Belongings refer to all things in your house, so insurance covers
you from theft as well. It is useful to have a home inventory so that you know
exactly what you have and how much they are worth. When it comes to belongings,
you are insured up to a certain limit only. You may need a separate insurance
for high-value items such as gold and jewelry.
Liability refers to accidents happening to others in your
home premises. High-risk areas for such caese are the pool, trampoline, or even
the stairs. Your home insurance protects you against law suits as well as takes
care of the medical expenses of others. Most insurance policies also cover
living expenses wherein in cases of an accident such as a fire or flooding from
broken pipelines, you may have to stay in a hotel.
Once you are clear about your needs and budget, work with an
independent agent who can present suitable options. You can get a professional
assessor to help you assess your risks, valuate your property, and suggest a
suitable coverage. Ensure your coverage is large enough as building and labor
costs are continually on the rise. If you make any additions, inform your
insurance agent to increase the coverage. This may not increase your premium
hugely, but will definitely buy you peace of mind. When buying the insurance,
specifically ask for what it does not cover
Remember, life is all about being prepared for the
unexpected.
Home Insurance
Home insurance, in general, covers the structure,
belongings, and liability
Most insurance policies do not cover damage caused but
natural disasters
Ensure your insurance cover is large enough as
building/labor costs are rising
UAE’s New Mortgage Rule Will Deter Property Investors – Experts
The UAE central bank recently issued a ruling to limit home loans to foreigners at 50 per cent of the property’s value.
The UAE central bank recently issued a circular instructing
commercial banks in the country to restrict mortgage loans to foreigners
at 50 per cent of the property’s value, Reuters reported earlier this
week.
While the central bank has not yet confirmed the ruling, the report
said that the move was probably aimed at ensuring that the UAE real
estate does not develop another property bubble as it did in 2008/2009.
But experts say the new rule could have a negative impact on the property market.
“I would presume that central bank has taken this initiative in order
to pre-empt another surge in the bank’s non-performing levels, which in
some cases peaked at 20 per cent of bank’s overall loan books and also
to weed out speculators from the market,” said Jonathan Fothergill,
director of valuations at Cluttons.
“In this respect, I think the general rationale of this instrument is
a good and positive step helping to lead to a more sustainable market.
“However, I think it is also inevitable that the initiative will
likely impact negatively on the market for end users just as this is
finding its feet once more. Not many expatriates in the country can
claim to be in a ready position to put down 50 per cent of a Dhs2.5
million property,” he said.
Dubai’s property market, which was the worst hit in the UAE during
the financial crisis in 2008/2009, began to finally stabilise in 2012.
Average rents for one, two and three bedroom apartments in Dubai fell
54 per cent between Q4 2008 and Q4 2011, but are now rebounding amidst
renewed confidence in the Dubai market, CBRE said in a report published
in December 2012.
Lease rates have risen by an average of 17 per cent over the past
year , with some established locations witnessing even higher growth,
the report said.
Matthew Green, head of research & consultancy UAE, CBRE Middle East
said: “Dubai is seeing higher rental growth this year due to a sustained
period of population growth, positive economic performance, increased
occupier demand, and limited availability of quality units in the most
desirable locations.
“Over the last 12 months we have also witnessed an appreciation of
sale rates, which have averaged 13 per cent in these areas. Sale rates
in the Greens and Downtown Dubai developments have appreciated at
notably higher rates, reflecting over 20 per cent year-on-year.”
The new central bank rule will negatively impact this recovery, said Clutton’s Fothergill.
“I think that the cap will certainly weed out speculators and
flippers but at the same time will also deter genuine end users,” he
said.
However he added that the there might be more modifications to the new ruling in the near future.
“The sudden and immediate arrival of this new central bank rule has
caught many involved in the real estate sector by surprise, but I would
be surprised if this is the final word on the matter and await to see
how this issue plays out over the coming weeks,” he said.
source gulfbusiness
