Question:
Question house building & contents insurance.
A terrace house owned by Muslim brother, since his house is attached to the others on both sides he is liable for all damages that are caused to his neighbour houses (they can sue him or take him to court), if a fire starts in house & damages this neighbours buildings & contents. An individual might be have to deal with the loss of his own property over a period of time, but would no-way be able to pay for his neighbours costs, nor would they be as understanding. With this in mind is it permissible for taking out insurance cover for building & content?
If the above was permissible, in the event of any damage caused to his house, would it be permissible to claim?
Wassalaam
Answer:
It is not permissible to take out any form of insurance which is in vogue today for the simple reason that it is a form of interest and gambling. However, there are a few types of insurance which may be permissible but they can only be understood after fully studying those insurance companies, their policies and schemes. (Jawaahirul Fiqh, Vol.2, Page 351. Jadeed Fiqhi Masaail, Vol.1, Page.260-262)
And Allah Ta’ala knows best
Ilyaas bin Hashim Limbada
Attested to as correct by:
Mufti Muhammad Ashraf
Darul Iftaa
Jameah Mahmoodiyah
Springs
24 August 2004
07 Rajab 1425