UAE – Fire insurance to cover alternative accommodation
Wednesday, 12 07 2016, Category: Insurance and Reinsurance, Country: U.A.E
The Insurance Authority requested companies operating in the Emirati insurance sector to compensate the insured owner or tenant for the alternative accommodation within the cover for the contract. This coverage will extend over the period of insurance as long as the building or apartment is not suitable as a residence or in case it cannot be reached.
The Authority added in a press release that the insured is eligible for compensation if he is an owner and the insurance company should pay transportation to the alternative accommodation or the rent of the temporary residence, which should be equivalent to the apartment previously occupied by the insured.
Moreover, the Authority added that in case the resident is a tenant, the insurance company should pay the transportation to the alternative accommodation or the difference in rental value between the alternative accommodation and the previous apartment provided it is of the same level.