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7 in 10 households do not have home insurance in the UAE
Posted on Jul 27, 2017 by Jessica Lindeman
While most people in the UAE know how important it is to protect their home and its contents, a staggering number of households do not have home insurance. In fact, a recent survey cited in this Middle East Insurance Review article found that 7 in 10 people in the UAE are not signed up to a home insurance policy, even though the vast majority of UAE residents (84.5%) admit that they would have greater peace of mind knowing that they had their home insured. So, why do so many people in the UAE lack home insurance? Read on to learn more about insuring your home in the UAE.
Why so many people lack home insurance in the UAE
Considering that most UAE residents know how important it is to have their home insured, it might seem ironic that so many people lack home insurance in the UAE. The reasons for this, according to the above mentioned study, are varied:
- 35.5% of UAE residents say that, while they know how important it is to have their home insured, they would rather take the chance that nothing bad will happen.
- 35% of respondents say they don’t see the point of having home insurance.
- 19% of respondents think that it’s too expensive.
- 9.2% say that it’s too difficult to secure coverage for their homes.
While the study does reveal that a lot of progress still needs to be made in regards to the need for greater education on home protection policies in the UAE, the region has actually experienced a steady growth in home insurance purchases. Another survey cited in the same Middle East Insurance Review article found that only 9% of residents had insurance coverage for their homes in 2016, yet in the first half of 2017 it was found that almost 30% of residents are covered, which shows that people are increasingly willing to secure this type of insurance coverage.
What you need to know about insuring your home
Unfortunately, problematic events can occur that leave your home and its belongings damaged or stolen. While the chances of something being stolen are generally pretty slim in the UAE, it does happen. For instance, earlier this year six people were sentenced to five years in jail for stealing jewellery from several villas across Dubai and hiding them inside date dough. The risk of fire is also very real. E.g., between April and July 2017, at least four fires broke out in different parts of Dubai. It’s important to note here that even minor smoke can damage your most prized possessions. As such, having the right home insurance policy to protect your dwelling and its valuables is incredibly important.
Coverage benefits to look out for
As with most insurance products, there’s no one-size-fits-all home insurance plan out there. When shopping for a policy, here are a few key coverage benefits you may want to keep an eye out for:
- Home contents: This will protect belongings such as electronic appliances, furniture, and other valuable items from theft, fire, smoke, etc.
- Tenant’s liability: This protects tenants against damages caused to property they are renting for which they are legally liable.
- Damages to the building: Covers the building from damages caused by fire, flooding, storm, vandalism, falling objects, etc.
- Personal liability: This protects the policyholder from costs that may arise from a third party injuring themselves on your property.
Other common coverage benefits to look out for include cover for domestic helpers, loss of rent as a result of damage to the property (making it uninhabitable), lock replacement following a break-in, and even frozen food cover.
As every policy is different, with any type of insurance plan it’s very important that you study the terms and conditions before buying, so that you are aware of any exclusions.
Common exclusions include:
- Any deliberate act by you or your household
- Burglary or other losses as a result of homeowner negligence;
- General wear and tear (e.g. rust, mold);
- Mechanical failure of household appliances;
- Unexplained losses/ mysterious disappearance of items.
Contact UAE Medical Insurance today
With so many home insurance policies to choose from, it can be hard to find the right insurance solution for your home protection needs. This is why it pays to talk to an experienced broker like UAE Medical Insurance, who will be able to sift through the plans available and find you the best value home protection policy that fits your budget requirements. To learn more, or to get a free quote, contact us today.