Page 80 - Focus Group

HOME INSURANCE

POLICY FOR TENANT

We all are aware that, UAE is known for mid to high- obliged to pay for damage caused to the
rise residential buildings. Generally, one high-rise building, the insurance provider will be pay for
building may have more than 200 apartments. the same.

In recent past, there were a few unfortunate • Loss of Documents: The insurance provider will
incidents of fire in some of these high-rise reimburse the cost of obtaining damaged /lost,
residential buildings. Firefighters do their best documents such as Passport, Driving License,
to bring it under control. However, damage is and Emirates ID, etc.
caused to the apartment before the fire brigade • Loss or theft of valuables and personal
arrives and valuables of tenants, important belongings: The insurance provider will provide
documents, etc. get damaged. Authorities will not for the loss or theft of money, jewelry and
allow tenants to occupy the apartment, unless personal belongings such as personal clothing,
it is safe to stay, leaving the tenants homeless for accessories, electronic devices, etc.
days. One may have an option to stay with friends
or family, but that is not a practical solution for a A word of caution: Always select a policy based
long time. Therefore, a tenant might be required to on your need and preferences. Keep in mind that,
find a suitable accommodation, which means an insurance policy will provide only financial support
additional financial burden. to the policy holder.
As a professional Chartered Accountants, we will Be aware. Be safe.
have to provide a solution to mitigate the risk.

How to mitigate the risk?

Home insurance policy will help to mitigate the
risk. Annual premium for such policy is less than a
family dinner at a restaurant. The policy will prove
useful not only in case of fire but otherwise as well.

A standard home insurance policy covers: CA Sangram Gandhi

• Loss of Rent & Alternative Accommodation: The
insurance provider bears the cost of alternative Disclaimer:
This article and/or write ups and/or any of its content shall not be treated as opinion and/
accommodation & loss of rent. or advice in any circumstances of the author(s) and/ or the Chapter. Reader’s to apply their
best judgement in the best interest of their requirement and should seek a formal opinion
• Tenant’s Liability: In case, tenant is legally on any issue.

80 TAX JOURNAL 2020 The Institute of Chartered Accountants of India (Dubai) Chapter NPIO