Is it permissible for me to insure my house If I pay no interest. If it is not permissible how can I Islamically protect my home financially
In the name of Allah, the most Beneficent, the most Merciful.
There are three reasons for the impermissibility of this:
The Holy Prophet of Allah Sallallahu Alahi Wasalam has said, “To take one dirham of interest knowingly is worse than committing adultery 36 times.” (Mishkaatul-Masaabeeh p.246 v.1)
- There is an element of deception. The insurance contract contains uncertainty due to the amount being paid is not fixed and the time it will occur also being uncertain.
The Prophet of Allah Sallallahu Alahi Wasalam has “forbade deception and uncertainty in transactions.” (Sunan Tirmizi p.233 v.1)
Insurance policies require payment of money, thereafter if the following mishaps were to occur a payment would be made. This is a pure form of gambling. (Raddul Muhtar p.577 v.9)
Regarding your question, even if you are not paying interest it will not be permissible to insure your house as it entails a form of deception and gambling.
However, if your area is notorious for thieves then it will be permissible to insure your property under the following principles:
- “Necessities make forbidden things permissible.”
- “Hardships bring easiness.” (Al Ashbah p.7)
It should be borne in mind, if your property did get damaged then only the money you paid will be permissible to take. Anything extra, it is obligatory to give the poor without the intention of reward. (Raddul Muhtar p.553 v.9)
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham