DUBAI 13 August 2017: A steep increase in home insurance sales since the Marina Torch Tower on Friday 4th August, has been reported by ServiceMarket, one of UAE’s leading marketplaces.
The majority of Dubai residents do not have home insurance and it is often the case that unfortunate events, such as the recent fire, bring the importance to light of having your home financially covered.
“We often experience a peak in home insurance sales after such fires. People don’t like to think about risks until something rather dramatic happens. However, it’s better to cover yourself in advance and have the peace of mind. After all, no one can predict what might go wrong when,” says Emre Guclu, Head of Insurance at ServiceMarket.
Most do not have home insurance
Around 90% of people do not have home insurance in Dubai, and therefore after such cases, residents are likely to be left with huge bills to replace their home contents and personal belongings. People often do not realise how much their belongings are worth. The value of just basic furniture, electronics and clothing can easily exceed the cost of a car.
Why insurance is important
Many residents have a “it would never happen to me” outlook when it comes to buying home insurance. However, home fires are one of the most common reasons for home insurance claims. In 2016, there were 215 reported fires in residential units in Dubai – that’s more than one fire every two days! Some of the most common reasons for home fires are electrical equipment (such as irons and hair straighteners), faulty electrical wiring, smoking and barbeques.
Home insurance does not only protect you against fires though. It can also protect you against things like flooding, theft and even loss of personal belongings. An important aspect, that many people overlook, is that if a fire or flood were to originate from your property then you would be liable for all damage that it causes, including that to other properties. Fortunately your home insurance policy would typically cover damage to third parties as well.
What type of home insurance
A recent survey by ServiceMarket revealed that 42% of respondents without home insurance didn’t see the point of buying home insurance since they were only renting their home. However, these people didn’t realize that protection against structural damage (home building insurance) is just one aspect of home insurance. It can also cover your home contents like furniture and applicants and personal belongings such as jewelry, laptops and smartphones. Your home insurance can even protect possessions that you carry around. The type of insurance you buy does depend on whether you own the property or are a tenant though. So what type of insurance is right for you?
If you own the property you should make sure to have building insurance to cover the property against structural damages.
If you live in the property (even if you are just renting) then you should have home contents and personal belongings to protect you against damage to your belongings. Your insurance policy may also cover you against liabilities to your landlord if you accidentally damage the property.
By Angel Chan