Getting fire insurance in Dubai is essential as it gives you financial protection against damages caused by a fire. It helps protect personal belongings from fire, earthquakes, lightning strikes, etc. If your possessions are damaged or destroyed in such circumstances, a good insurance company will pay to repair or replace them.
Due to UAE’s hot weather, the immense heat can cause short circuits in the factories and warehouses used to manufacture and store goods. Insurance can help you cover damages and losses caused by a fire in case of a fire. Different insurance companies are offering customized insurance insurance coverage for commercial and residential entities and protecting against fire damages.
Fire and Allied Perils Cover – Fire Insurance in Dubai
A standard fire and allied perils policy is an insurance contract that protects the insured individual against unexpected losses caused by fire, explosion, and natural disasters such as earthquakes, floods, etc.
Types of Covers Under Fire & Allied Perils
Usually, there are two types of covers offered under this product,
- Basic cover policy losses and/or damages due to fire or lightning.
- Additional cover for losses and/or damages from fire, lightning, and allied perils.
Coverage
Both of the categories mentioned above have the same terms. However, each allied peril has a different rating for additional coverage. Additionally, the standard fire and allied perils policy can be extended to cover losses and/or damages due to burglary.
Insured Amount
The coverage amount provided by an insurance company in UAE is decided based on the property’s actual value or new replacement value. It should be sufficient to cover the total loss.
The insured party calculates and informs the insurance company of the sum insured. You can also get the help of the company’s underwriters to make the calculations. Calculating the accurate sum insured is essential as it will avoid averages when you want to claim your insured amount, or you will have to pay a portion of the loss.
Premium Amount
The premium amount usually depends on the nature of the risk, housekeeping, and location. The price chargeable is calculated on a per-mile basis based on the total sum insured. A deductible is applied for each claim. This is an addition, along with other conditions.
Property All Risks Insurance – Fire Insurance in Dubai
A property all-risks Insurance policy covers accidental physical loss or damage to the insured property while it is located at the property mentioned in the policy.
Coverage
The property coverage and all risk insurance for one year. The coverage includes damage done by the following,
- Fire
- Lightning
- Earthquake
- Explosion
- Aircrafts
- Strike
- Storm
- Riot
- Malicious damage
- Flood
- Tempest
- Impact by own vehicles
- Theft or attempted theft
- Bursting or overflowing of water equipment
- Other accident damage or loss
Insured Amount
The insured amount is decided based on the property’s actual value or the new replacement value. The amount must be sufficient to cover the total damage.
The insured party calculates and informs the insurance company of the amount insured or gets help from the company’s underwriter. Calculating the accurate sum insured is important as it will avoid applying averages when you want to claim your insured amount, or you will have to pay a portion of the loss.
Premium Amount
The chargeable rate is calculated on a per-mile basis on the total sum insured. The premium amount usually depends on the nature of the risk, housekeeping, and location. A deductible is applied to each claim. This is an addition, along with other conditions.
Business Interruption Insurance
Business interruption insurance helps you deal with fire or lightning incidents at your business. A fire or lightning incident can cause stress of lost profits and maintenance of fixed charges such as workers’ salaries, electricity bills, bank interests, and rents, which are required to be paid under any circumstances.
Business interruption insurance helps the company against losses and financial expenses when the business can’t operate at its full capacity.
Additional Cover
Business interruption insurance is an additional cover that can be bought in addition to property all-risks or fire insurance policies. Hence, getting at least one Insurance Policy to enjoy the benefits of Business Interruption coverage is essential.
Sum Insured and Premiums
In business interruption insurance, the following factors are considered for calculating the sum insured and premiums. The rate chargeable is applied to the total sum insured, and it depends on the nature of the risk, the time of Insurance Coverage, the location, and the alternatives available to continue the business.
Gross profit
The amount by which “the total value of the revenue and the value of closing inventory” surpasses “the total value of the opening inventory and the specified work expenses.” The value of opening and closing inventory should be calculated according to the accountancy methods of the insured company.
Net Profit
This is the insured company’s net trading income at the property after due expenses are paid. The net profit is exclusive of all cash receipts, cumulations, and expenses attributed to capital.
Annual Turnover
Turnover means the total money the insured company earns in one year.
Overhead Costs
All regular payments, such as rent, interest, insurance premiums, bank expenses, advertising, printing, electricity, maintenance of machinery, traveling expenses, and building devaluation, are included.
Indemnity Period
The indemnity period is when benefits are payable under the insurance policy. It is different from the insurance period, which is usually 12 months. The indemnity period depends on the time the insured company needs to be able to return to its original position before the incident that led to property damage and losses.
The indemnity period is mainly 6 to 18 months. But it usually works out based on payable indemnity amounts, which are determined by,
- Increase in working cost
- Turnover reduction
Types of Insurance Providers – Fire Insurance in Dubai
To get fire insurance, you can approach an insurance company. There are many insurance companies with different types of coverage and different policies. Here are some of the best insurance providers in the UAE.
ANIB – Fire Insurance in Dubai
ANIB offers the best Insurance in UAE for different types of fires and natural disasters according to its clients’ requirements.
AMAN Insurance – Fire Insurance in Dubai
Aman Insurance also offers various insurance policies for fire, earthquakes, lighting, and other damages.
HSBC UAE – Fire Insurance in Dubai
HSBC offers home insurance that generally covers fire, burglary, and other natural disasters. It is also one of the best Insurance companies in the UAE.
Prominent Insurance Brokers
The company also offers various insurance plans for individuals and businesses in the UAE.
Union Insurance – Fire Insurance in Dubai
Union Insurance offers various fire and allied perils covers for damages from natural disasters, strikes, theft, etc.
Summary
Fire insurance in Dubai is a must to cover the damages and losses triggered by fire. It covers all movable and immovable items, buildings, machinery and plants, fixtures, and raw materials. Many types of insurance coverage are available in the UAE for your business or residential areas.
Al-Riyady is one of the top business setup consultants in the UAE, working closely with government agencies. Our expert team can help with all business-related questions, saving you time and money. We can help you get a UAE Golden Visa, open a Bank Account in the UAE, get your Business Licenses, and more.